If you run a small business in Malaysia, the e-Invoicing deadline just got a bit more breathing room—but not for everyone. The Ministry of Finance has released a revised implementation schedule that gives SMEs under RM5 million annual revenue a longer runway, while companies below RM500,000 are off the hook for now. But don’t relax just yet: the core compliance requirement—e-Invoices for every transaction over RM10,000—kicks in for covered businesses starting 1 January 2026.
Who gets relief, and who doesn’t
The table below shows the three tiers based on your annual revenue. Find your bracket and note the change:
Annual Revenue
E-Invoicing Requirement
Effective Date
Below RM500,000
Exempted (for now)
N/A
RM500,000 – RM5 million
Extension granted; must comply
1 January 2026 (or later date per LHDN)
Above RM5 million
Already required
1 January 2025 (previous phase)
Takeaway: If you’re in the middle tier, you have until 2026 to prepare—but that’s not as far off as it sounds. And if you’re below RM500K, enjoy the reprieve, but start planning because exemptions can be withdrawn later.
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Key compliance rule you can’t ignore
From 1 January 2026, every covered business must issue an e-Invoice for any single sale of goods or provision of services that exceeds RM10,000. One critical detail: you can’t bundle multiple smaller transactions into a single consolidated e-Invoice. Each transaction above the threshold needs its own e-Invoice. That means if you run a retail or service business, you’ll likely need to automate this process to avoid manual chaos.
What you should do this week
Here’s a practical checklist to get ready now:
Check your annual revenue from the last financial year. If you’re near the RM500K threshold, confirm with your accountant which bracket you fall into.
Talk to your software provider – ask if your current accounting system can generate e-Invoices that comply with IRBM (LHDN) specifications. If not, look for upgrades or alternatives.
Train your team – especially if you handle many RM10,000+ transactions. Your invoicing staff need to know when to issue an e-Invoice and when regular invoices are still fine.
Set a micro-deadline – aim to have a test run by mid-2025. That gives you six months to fix issues before the official start.
Common mistakes to avoid
Assuming all SMEs are exempt – Only those under RM500K are exempt. The rest must comply by 2026.
Waiting until December 2025 – The rule starts on 1 January 2026, but you’ll need to have your system ready and tested by then.
Mixing transaction types – You cannot aggregate multiple small sales into a single e-Invoice to avoid the threshold. Each discrete transaction over RM10,000 stands alone.
Ignoring the RM10,000 limit – Remember, it’s per transaction, not per customer or per day. A single RM15,000 sale requires an e-Invoice even if your annual revenue is low.
E-Invoicing isn’t going away. The government’s revised schedule gives you time, but the clock is still ticking. If you’re in the RM500K–RM5M bracket, use this extension wisely—don’t waste it.
Need help sorting out your e-Invoicing setup? HeyBen can automate your invoice compliance and keep you aligned with LHDN requirements, so you can focus on growing your business.
