e- Invoice: RM3 Million Is the New Threshold!
Key Takeaway
e-Invoice exemption
threshold increased from
RM1 million to RM3
million, effective 1
September 2026.
Tips
- Check your annual turnover/revenue against the RM3 million threshold.
- Check ownership and group structures before relying on the exemption, particularly shareholders, holding companies, related companies and joint ventures.
The Inland Revenue Board of Malaysia (“IRBM”) issued e-Invoice Guideline Version 4.8 on 30 August 2026, replacing Version 4.7
dated 7 July 2026. The key amendments relate principally to the e-Invoice implementation timeline and the exemption threshold for
taxpayers with annual turnover or revenue below RM3 million.
This represents a significant relaxation for taxpayers with turnover between RM1 million and below RM3 million, who were previously within the e-Invoice framework.
The amendments comprise changes to paragraphs 1.5 and 1.6.1(e), together with the introduction of new paragraphs 1.6.9 and 1.6.10 as below:
This represents a significant relaxation for taxpayers with turnover between RM1 million and below RM3 million, who were previously within the e-Invoice framework.
The amendments comprise changes to paragraphs 1.5 and 1.6.1(e), together with the introduction of new paragraphs 1.6.9 and 1.6.10 as below:
Implementation timeline for new businesses
Paragraph 1.5 has been amended to reflect the revised RM3 million
threshold in determining the e-Invoice implementation timeline for
businesses that commence operations between 2023 and 2025.
Businesses that commenced operations during this period should
reassess their e-Invoice implementation date based on the revised
RM3 million threshold.
Exemption threshold increased
The exemption threshold has been increased from RM1 million to RM3 million.
Specific taxpayers brought into the e-Invoice requirement
This Guide further clarifies the e-Invoice treatment applicable to the following entities:
These entities are required to issue e-Invoices for goods sold or services performed from 1 July 2025 onwards.
- Statutory bodies;
- Statutory authorities;
- Local authorities; and
- International organisations.
These entities are required to issue e-Invoices for goods sold or services performed from 1 July 2025 onwards.
Conditions restricting the RM3 million exemption
The exemption for taxpayers with annual turnover / revenue of less than RM3 million applies across taxpayer
categories, including individuals, partnerships, companies and cooperatives. However, the exemption does
not apply in certain ownership or group-structure circumstances:-
Taxpayer with annual turnover or revenue of less than RM3 million shall not be eligible for the exemption where any of the following conditions apply:
Taxpayer with annual turnover or revenue of less than RM3 million shall not be eligible for the exemption where any of the following conditions apply:
- Non-individual shareholder
The taxpayer has a non-individual shareholder (or equivalent) with annual turnover / revenue of RM3 million or more. - Subsidiary
The taxpayer is a subsidiary of a holding company whose annual turnover / revenue is RM3 million or more. - Related company / joint venture
The taxpayer has a related company or joint venture with annual turnover / revenue of RM3 million or more.
