- Revised E-Invoicing Implementation Timeline: The Inland Revenue Board of Malaysia (IRBM) has updated its e-Invoice Guidelines, introducing a phased rollout based on annual turnover thresholds, which now includes more detailed categories for smaller businesses. Implementation for businesses with annual turnover between RM5 million and RM25 million will begin on July 1, 2025.
- Updated Turnover Categories: The new schedule specifies that businesses with turnover between RM1 million and RM5 million will start e-invoicing on January 1, 2026, while those with turnover below RM1 million will be required to comply starting July 1, 2026. Businesses with turnover below RM500,000 remain exempt from e-invoicing requirements.
- Transaction Invoicing Requirements: Beginning January 1, 2026, all individual transactions exceeding RM10,000 (approx. €2,000) must be invoiced separately, as consolidated e-invoices will no longer be allowed. The previously established six-month grace period after the mandate will continue, with adjustments made to align with the new turnover categories.
Source: SOVOS
Click on the logo to visit the website
Malaysia revises phases of mandatory e-invoicing rollout
- Revised E-Invoicing Timeline: The Inland Revenue Board of Malaysia (IRBM) has announced a revised implementation timeline for e-invoicing, providing additional time for small and medium-sized businesses to comply. The phased rollout now extends into 2026, with different phases based on annual sales thresholds.
- Phased Rollout Details: The updated schedule includes: Phase 3 for taxpayers with annual sales exceeding RM5 million (approx. EUR 1 million) starting July 1, 2025; Phase 4 for those with sales between RM1 million and RM5 million (approx. EUR 220,000–1 million) starting January 1, 2026; and Phase 5 for businesses with sales between RM500,000 and RM1 million (approx. EUR 110,000–220,000) starting July 1, 2026. Taxpayers with annual sales below RM500,000 remain exempt.
- Grace Period and Compliance Guidelines: A six-month grace period allows taxpayers to issue consolidated e-invoices for all transactions, with the requirement for individual e-invoices for transactions over RM10,000 (approx. EUR 2,200) effective January 1, 2026. The IRBM has also updated its e-invoice guidelines to reflect these changes, ensuring that enforcement actions will not be taken during the grace periods.
Source Pagero
- See also
- Join the Linkedin Group on Global E-Invoicing/E-Reporting/SAF-T Developments, click HERE
