Micro, small and medium enterprises (MSMEs) with annual sales of less than RM3 million will no longer be required to issue e-invoices, after the government raised the compliance threshold from RM1 million, effective 1 September.
The Inland Revenue Board (IRB) confirmed the change in a statement on 30 August, saying it followed Prime Minister Datuk Seri Anwar Ibrahim’s announcement during the 2026 National Day Prime Minister’s Address. The new threshold exempts more than 1.1 million businesses from mandatory e-invoice compliance, The Edge Malaysia reported.
The decision reverses the original scope that had drawn widespread pushback from small business owners, who cited the cost and complexity of integrating their accounting systems with the MyInvois platform. Under the revised rule, only businesses with annual turnover or revenue of RM3 million and above fall within the mandatory scope.
IRB stressed that the government “strongly encouraged” MSMEs to continue adopting e-invoicing on a voluntary basis, in line with the country’s push to digitalise business operations. It said the Madani government’s decision reflected a priority on easing the compliance burden while giving businesses “more room to focus on sustaining and expanding their operations,” Scoop reported.
The revised guideline, Version 4.8 of the e-Invoice Specific Guideline, introduces group ownership conditions that may still require certain businesses to comply even if their individual turnover falls below the threshold. A taxpayer with a non-individual shareholder, holding company, related company, or joint venture meeting the RM3 million threshold may not qualify for the exemption, according to The Edge Malaysia.
The threshold increase also applies to newer businesses. A business that commenced operations between 2023 and 2025 must implement e-invoicing from 1 July 2026 only where its annual turnover or revenue reaches at least RM3 million, up from the previous RM1 million floor, as reported by Scoop.
Since e-invoicing was introduced on 1 August 2024, IRB said a total of 265,379 taxpayers had submitted more than 1.84 billion e-invoices, a figure it described as reflecting “good acceptance” among taxpayers. The agency committed to continuing educational programmes, hand-holding initiatives, and engagement sessions, including guides for the MyInvois Portal, MyInvois application, and MyInvois e-POS.
Taxpayers seeking help can contact the e-Invoice Helpdesk at 03-8682 8000, visit IRB offices, use the MyInvois Live Chat, or email [email protected].
