Summary
- Malaysia’s Inland Revenue Board (LHDN/IRBM) published the e‑Invoice Specific Guideline Version 4.7 on 20 April 2026, replacing version 4.6 and updating detailed transactional guidance, including treatment during the interim relaxation period. [hasil.gov.my], [hasil.gov.my]
- The interim (penalty‑free) relaxation period for Phase 4 taxpayers has been extended by a further 12 months to 31 December 2027, while the mandatory implementation date of 1 January 2026 remains unchanged. [jomeinvoice.my], [businesstoday.com.my]
- The extension applies mainly to businesses with annual turnover between RM 1 million and RM 5 million, allowing continued use of consolidated e‑invoices during the relaxation period, with full enforcement starting 1 January 2028. [jomeinvoice.my], [thestar.com.my]
Article
- Publication of e‑Invoice Specific Guideline Version 4.7
On 20 April 2026, the Inland Revenue Board of Malaysia (LHDN/IRBM) released e‑Invoice Specific Guideline Version 4.7, officially replacing Version 4.6. This guideline is issued under section 134A of the Income Tax Act 1967 and provides detailed, scenario‑based instructions on how taxpayers must apply Malaysia’s e‑invoicing rules in practice. [hasil.gov.my], [hasil.gov.my]
Version 4.7 covers a wide range of transaction types, including periodic billing, self‑billed e‑invoices, cross‑border transactions, agent and distributor arrangements, e‑commerce transactions, and profit distributions. Importantly, it also updates the guidance on how e‑invoices may be treated during the interim relaxation period, reflecting the government’s latest policy decisions announced in April 2026. [hasil.gov.my]
The guideline can be accessed directly via the LHDN website and forms part of the official reference framework that taxpayers must follow when implementing e‑invoicing through the MyInvois portal or API integration model. [hasil.gov.my]
- Extension of the Interim Relaxation Period for Phase 4
Alongside the publication of the updated guideline, the Malaysian government confirmed a further 12‑month extension of the interim relaxation period for Phase 4 of the e‑invoicing rollout. Originally due to end on 31 December 2026, the relaxation window now runs until 31 December 2027. [jomeinvoice.my], [businesstoday.com.my]
This announcement was made by Prime Minister Datuk Seri Anwar Ibrahim as part of a broader package of measures aimed at supporting small and mid‑sized enterprises amid ongoing economic and cost pressures. The extension has subsequently been reflected in LHDN’s updated FAQs and market communications. [jomeinvoice.my], [thestar.com.my]
It is important to note that this measure does not postpone the legal start date of e‑invoicing. Phase 4 taxpayers are still required to implement e‑invoicing from 1 January 2026; the extension solely delays the start of penalty enforcement for certain compliance obligations. [jomeinvoice.my]
- Scope and Practical Impact
Phase 4 primarily affects taxpayers with annual turnover or revenue between RM 1 million and RM 5 million, as well as certain new businesses commenced between 2023 and 2025 that exceed the RM 1 million threshold. During the extended relaxation period, these businesses may continue to:
- issue monthly consolidated e‑invoices instead of transaction‑by‑transaction invoices; and
- benefit from no penalties for non‑compliance, provided minimum consolidation requirements are met. [jomeinvoice.my], [thestar.com.my]
Full enforcement, including penalties under the Income Tax Act 1967, will begin on 1 January 2028 for Phase 4 taxpayers. Phases 1 to 3 (turnover above RM 5 million) remain unaffected by this extension and continue under the original enforcement timelines. [jomeinvoice.my]
Key external resources
- LHDN – e‑Invoice Specific Guideline Version 4.7 (20 April 2026):
Official guideline download – LHDN - Business Today (20 April 2026) – Government confirms Phase 4 extension to 31 December 2027:
Government Extends E‑Invoice Transition for Mid‑Size Companies - The Star (20 April 2026) – Budget and SME relief measures including e‑invoicing extension:
RM5 billion guarantee and e‑invoice easing for SMEs
- See also
- Join the Linkedin Group on Global E-Invoicing/E-Reporting/SAF-T Developments, click HERE
- Join the LinkedIn Group on ”VAT in the Digital Age” (VIDA), click HERE
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