08/12/2025
📌 Implementation Timeline
1. Companies that start operating on or before YA2022
✅ If not meeting the exemption criteria, implementation commences from 1 July 2026
✅ If YA2022 annual turnover is below RM1 million, at which stage should e-Invoicing be implemented?
- If annual revenue exceeds RM1 million between YA2023 and YA2025, implementation commences from 1 January 2026
- If revenue exceeds RM1 million in YA2026 or later, implementation commences from 1 January of the year following the tax year in which the threshold is reached.
2. Companies commencing operations between YA2023 and YA2025
✅ If annual revenue exceeds RM1 million between YA2023 and YA2025, implementation must commence from 1 July 2026.
✅ If annual revenue remains below RM1 million and all exemption criteria are fully met, full exemption applies.
✅ If annual turnover exceeds RM1 million in YA2026 or subsequent tax years, mandatory e-invoicing commences on 1 January of the second year following that tax year.
3. Companies commencing operations in YA2026
✅ If annual turnover reaches or exceeds RM1 million in YA2026, e-invoicing commences in the second year of that tax year (1 January 2028).
✅ If turnover does not exceed RM1 million in YA2026, taxpayers are exempt from implementing e-Invoice..
📌 Who qualifies for e-Invoice exemption?
All taxpayers engaged in commercial activities must implement the e-Invoice system according to their respective phases, unless fully exempted (including self-billed invoices) by meeting the following criteria:
✅ Annual turnover < RM1,000,000
✅ No corporate shareholders
✅ Not a subsidiary
✅ No associated or joint venture companies.
📌 Who is ineligible for exemption
✅ Non-individual shareholders (or equivalent beneficial owners) with annual turnover or income of at least RM1,000,000
✅ Subsidiaries of holding companies with annual turnover or income of at least RM1,000,000
✅ Affiliated companies or joint ventures with annual turnover or income of at least RM1,000,000.
📌 Where multiple Enterprises are held, turnover must be aggregated
For sole proprietorships, the requirement to implement e-Invoice is determined by aggregating the total annual turnover or income across all sole proprietorships under the same name to assess whether the RM1,000,000 threshold is met.
📌 How is annual turnover determined?
The criteria are as follows:
✅ With audited financial statements: The annual turnover stated in the [Consolidated Income Statement] of the relevant audited financial report shall prevail.
✅ Without audited financial statements: The annual income declared in the tax return for the relevant tax year shall prevail.
✅ Regardless of whether audited statements exist, the implementation of e-Invoice is required if the turnover for the relevant year reaches RM1 million.
