Malaysia’s New RM1 Million e-Invoicing Threshold: A Focused Update

Increased E-Invoice Exemption Threshold: As of December 6, 2025, the Malaysian Cabinet has raised the e-invoice exemption threshold from RM500,000 to RM1,000,000 in annual turnover, meaning companies with revenue below RM1 million are now exempt from mandatory e-invoicing requirements.
Updated Implementation Phases: The phased rollout of e-invoicing remains in place for larger taxpayers, with specific deadlines for different revenue brackets: RM100 million (since August 2024), RM25 million (from January 2025), RM5 million (from July 2025), and RM1 million to RM5 million (from January 2026).
Implications for Businesses: Businesses with revenue below RM1 million are not obligated to adopt e-invoicing but can choose to do so voluntarily. In contrast, businesses with RM1 million or more must comply with the e-invoicing mandate according to their designated timelines, ensuring adherence to the latest IRBM guidelines for compliance.

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Malaysia Raises E-Invoicing Exemption Threshold to RM1 Million, Cancels Final Implementation Phase

Increased E-Invoicing Exemption Threshold: The Inland Revenue Board of Malaysia (IRBM) has raised the mandatory e-invoicing exemption threshold from RM500,000 to RM1 million in annual turnover, effectively relieving the smallest Micro, Small, and Medium Enterprises (MSMEs) from compliance requirements.
Policy Adjustments and Impact on Larger Firms: The planned “Phase 5” rollout targeting businesses under the original RM500,000 threshold has been canceled, while larger firms must still comply with established rollout phases, with Phase 3 starting July 1, 2025, for revenues over RM5 million, and Phase 4 beginning January 1, 2026, for revenues over RM1 million.
Strategic Recommendations for MSMEs: Although smaller businesses are temporarily exempt, they should view this change as a deferral rather than a permanent opt-out. Establishing a robust e-invoicing workflow now, potentially with partners like Comarch, will prepare them for future compliance and demonstrate digital maturity to their supply chain partners.

Malaysia Raises E-Invoicing Exemption Threshold to RM1 Million, Cancels Final Implementation Phase

Malaysia has raised the mandatory e-invoicing exemption threshold from RM500,000 to RM1 million annual turnover/revenue.
Taxpayers with annual turnover up to RM1 million are now exempt from mandatory e-invoicing.
The final implementation phase for taxpayers with turnover up to RM1 million, previously set for 1 July 2026, is cancelled.
No changes for businesses with turnover above RM1 million; they must comply according to the existing phased timeline.
Each phase includes a six-month grace period with relaxed enforcement if consolidated e-invoices are issued.

E-invoicing