The thresholds have moved twice in ten months, and both moves went the same way — fewer businesses in scope. If you scoped a project before September 2026, it is worth checking whether you are still in scope at all.
The exemption threshold changed on 1 September 2026. It went from RM1 million to RM3 million, following the Prime Minister's announcement of 30 August 2026 and e-Invoice Guideline version 4.8 of the same date. Material published before September 2026 — including ours, until this review — states the old figure. More than a million businesses are affected.
LHDN phased the mandate by company size, largest first. Your mandatory date is set by annual turnover or revenue.
The largest businesses went first, and have been submitting through MyInvois for over two years.
Upper mid-market. Live, and past its own relaxation period.
Mid-market, and the phase where most ERP integration work concentrated.
Two dates for the final group, the later one concessionary. Both carry an interim relaxation period running to 31 December 2027.
A fifth phase was planned for the smallest businesses and cancelled in December 2025, when the exemption threshold was first raised from RM500,000 to RM1 million. It was raised again, to RM3 million, in September 2026.
Turnover is the first test, not the only one. LHDN's criteria also look at shareholding structure, whether there is a holding company, and related company or joint venture arrangements.
A small subsidiary of a large group can sit well below the threshold and still be in scope. Check the criteria rather than the number.
From 1 January 2026, a transaction above RM10,000 needs its own individual e-invoice and cannot be rolled into a consolidated submission. The threshold applies to a single transaction, not a cumulative total for the same buyer.
This is the trap: the interim relaxation running to December 2027 does not extend to this requirement, so it is enforceable now even for businesses still inside their relaxation window.
If turnover later reaches or exceeds RM3 million, the obligation starts on 1 January of the second year following the year of assessment in which it did.
That is a long runway, and it is only useful to a business that noticed the year it crossed the line.
Documents are validated by IRBM through MyInvois, and a validated invoice comes back with a QR code. The field set is extensive, covering seller and buyer details, line items, quantities, prices, taxes, totals and payment information.
Most of the difficulty is not the submission itself. It is that those fields have to come out of an ERP that was never asked for them — supplier tax identifiers that were never captured, classification codes that were never mapped, and buyer details that sit in a CRM rather than the finance system.
This is why master data quality, not integration, is usually what decides whether first-time clearance rates are good or bad.
Valtatech holds Malaysia Digital status and is an MDEC-accredited Peppol service provider. Our middleware connects SAP, NetSuite and other ERPs to MyInvois, handling digital signing, format conversion, submission to IRBM and the validation result coming back the other way.
How our access point works → · SAP integration → · Fixing low first-time clearance →
Businesses with annual turnover or revenue below RM3 million may qualify for exemption. The threshold was raised from RM1 million with effect from 1 September 2026, following e-Invoice Guideline version 4.8 dated 30 August 2026. Turnover alone does not decide it: LHDN's criteria also consider shareholding structure, holding company relationships and related company or joint venture arrangements.
Businesses with turnover up to RM5 million have a mandatory date of 1 January 2026 or 1 July 2026, and an interim relaxation period running until 31 December 2027. Full enforcement follows from 1 January 2028. The relaxation period does not cover the RM10,000 individual e-invoice rule, which is enforceable from 1 January 2026.
Not for larger transactions. From 1 January 2026, any single transaction above RM10,000 requires its own individual e-invoice and cannot be included in a consolidated submission. The threshold applies to the value of one transaction, not the cumulative total for a buyer.
The exemption is not permanent. If annual turnover or revenue reaches or exceeds RM3 million, e-invoicing must be implemented from 1 January of the second year following the year of assessment in which the threshold was crossed.
Last reviewed 24 September 2026. Sources: LHDN / IRBM e-Invoice General FAQs, updated 4 September 2026, and e-Invoice Guideline version 4.8 dated 30 August 2026. E-invoicing rules change, sometimes at short notice — this page is general information about published requirements, not tax advice. Check your own position with your tax adviser, and tell us if you spot something out of date.
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