The Inland Revenue Board of Malaysia (IRBM) has revised the e-Invoicing implementation date (timeline) on 6th June 2025, introducing a new deadline and relaxation period. The rollout is now structured into five phases (as shown in the table below), giving businesses especially small and medium enterprises (SMEs) more time to prepare. Under this updated timeline, small businesses have until 1 July 2026 to comply with Malaysia's e-Invoice Mandate.
e-Invoice implementation date in Malaysia is 1 January 2026 for businesses with annual turnover between RM1 million and RM5 million, and 1 July 2026 for businesses with turnover below RM1 million. The table below outlines the complete timeline with turnover thresholds and relaxation periods:
Phase | Targeted Taxpayers (Annual Turnover) | Implementation Date | End of Relaxation Period |
Phase 1 | > RM100 million | 1 August 2024 | 31 January 2025 |
> RM25 million to RM100 million | 1 January 2025 | 30 June 2025 | |
> RM5 million to RM25 million | 1 July 2025 | 31 December 2025 | |
> RM1 million to RM5 million | 1 January 2026 | 30 June 2026 | |
Up to RM1 million | 1 July 2026 | 31 December 2026 |
Note:
Businesses falling under different phases of implementation has separate compliance requirements as of now.
For businesses with annual revenue less than RM100M, Starting February 1, 2025, Phase 1 businesses must comply with full e-invoice requirements, including:
For businesses with annual revenue between RM 25Million – RM100 Million during their relaxation period until June 30, 2025, Phase 2 businesses can:
Recommendations for Phase 2 Businesses:
After June 30, 2025, full compliance is required, including mandatory separate B2B validation.
Who: Businesses with annual revenue between RM5 million and RM25 million.
Timeline: Starts 1 July 2025; relaxation period ends 31 December 2025.
Preparation Tips:
Who: Businesses with annual revenue between RM1 million and RM5 million.
Timeline: Begins 1 January 2026; relaxation period ends 30 June 2026.
Key Action Items:
Who: Businesses with annual turnover up to RM1 million.
Timeline: Starts 1 July 2026; relaxation period until 31 December 2026.
Note: If your business Turnover is below RM500,000, you are exempt from e-invoicing altogether.
The Inland Revenue Board of Malaysia (IRBM) has introduced a six-month relaxation period for businesses in each phase to ease the transition. During this time:
Starting February 1, 2025, Phase 1 businesses must fully comply with e-invoicing regulations, with penalties enforced for any violations. Similarly, Phase 2 businesses will face enforcement beginning July 1, 2025.
Failure to issue an e-invoice is considered an offense under Section 120(1)(d) of the Income Tax Act 1967. Non-compliant businesses may be subject to:
ClearTax is an MDEC-accredited e-invoicing solution provider in Malaysia, offering seamless API-based integration to help businesses comply with MyInvois requirements.
Malaysia’s e-invoice implementation now follows a five-phase rollout—each with tailored deadlines, relaxation periods, and compliance requirements:
During the relaxation period, certain flexibilities (such as consolidated invoicing) apply. After the period ends, strict enforcement—including UIN accuracy and timely issuance—is in effect.