RM3 Million e-Invoice Exemption Threshold: Eligible Taxpayers May Discontinue e-Invoice Issuance Without Prior HASiL Approval
Key Takeaway
- The e-Invoice implementation threshold has been increased from RM1 million to RM3 million, effective 1 September 2026.
- Taxpayers who have already started e-Invoicing but now qualify for the exemption may stop issuing e-Invoices without applying to HASiL.
The Inland Revenue Board of Malaysia (“IRBM”) has clarified that
businesses with annual turnover or revenue below RM3 million that
satisfy the prescribed exemption criteria will not be subject to
compliance action or penalties, even if they have not issued
e-Invoices from their applicable implementation date. The
clarification was provided in the latest e-Invoice Frequently Asked
Questions (FAQ) issued by IRBM dated 4th August 2026.
Immediate Cessation of e-Invoice Without Prior Approval
Taxpayers who qualify for the e-Invoice exemption but have already
commenced e-Invoice implementation may discontinue issuing
e-Invoices immediately. Importantly, taxpayers are not required to
submit a separate application to IRBM or obtain prior approval to
cease e-Invoice implementation.
Under the latest clarification, taxpayers with annual turnover or revenue below RM3 million who satisfy the exemption conditions set out in Section 1.6.10 of the e-Invoice Guideline are eligible for the exemption.
Under the latest clarification, taxpayers with annual turnover or revenue below RM3 million who satisfy the exemption conditions set out in Section 1.6.10 of the e-Invoice Guideline are eligible for the exemption.
Voluntary e-Invoice Implementation Remains an Option
Businesses that qualify for the exemption are not prohibited from
continuing with e-Invoice implementation. Taxpayers may
voluntarily continue issuing e-Invoices if they consider it beneficial
for their business operations, accounting processes or broader
digitalisation efforts.
Tax Incentives
The e-Invoice FAQs also summarise the tax incentives available to eligible taxpayers in relation to
e-Invoice implementation, including Accelerated Capital Allowance (ACA) incentives. The applicable
incentives, together with their legislative reference or status, key details, and effective period, are set out
in a table.
Special Voluntary Disclosure Programme (“SVDP”)
FAQs No 123–133 provide taxpayers with greater certainty on the practical application of the e-Invoice
SVDP, particularly in relation to historical rectification, the 72-hour cancellation rule, incorrect
classifications, subsequent disclosures, consolidated e-Invoices, group entities and third-party service
providers. Taxpayers should consider undertaking a review of their historical e-Invoice transactions to
identify any outstanding non-compliance and, where appropriate, regularise the position during the SVDP
period ending 31 December 2027.
