The Inland Revenue Board of Malaysia (HASiL/LHDN) has successfully recovered RM760.7 million in taxes after using its e-Invoicing data to identify and “nudge” non-compliant taxpayers.
Following the agency’s data-driven reminders, a total of 38,906 taxpayers voluntarily stepped forward to file their Income Tax Return Forms (BNCP), reporting previously undisclosed income totaling RM3.5 billion.
Since the mandatory implementation of e-Invoicing began on August 1, 2024, the digital shift has gained significant momentum. LHDN reported that 225,604 taxpayers have participated in the system to date, issuing a staggering 1.299 billion e-Invoices.
The agency noted that this milestone reflects strong support for the government’s digitalization agenda, leading to more organized record-keeping and business transparency.
While many have complied, LHDN is taking a firmer stance against those lagging behind. Between April 20 and April 24, 2026, the agency conducted the National e-Invoicing Compliance Review Operation 2026 simultaneously across the country.
In a major relief for Micro, Small, and Medium Enterprises (MSMEs), the government has announced an extended “relaxation period” to ease the transition for Phase 4 participants, which began on January 1, 2026.
According to a Ministry of Finance announcement on April 20, the grace period has been doubled from 12 months to 24 months. New Timeline: January 1, 2026, to December 31, 2027. Consolidated e-Invoices: During this period, MSMEs are permitted to issue consolidated e-Invoices monthly for all transactions. No Penalties: LHDN confirmed it will not impose penalties for non-compliance during this transition, provided that taxpayers adhere to the consolidated e-Invoicing requirements.
