The government has raised the mandatory e-Invoice implementation threshold from RM1 million to RM3 million in annual revenue or sales, effective Sept 1, 2026, exempting more than 1.1 million businesses from the requirement, according to the the announcement by Prime Minister Datuk Seri Anwar Ibrahim during his Merdeka address.
The move means micro, small and medium enterprises (MSMEs) with annual revenue or sales of less than RM3 million will no longer be required to implement e-Invoicing.
The higher threshold is aimed at reducing compliance burdens and costs for smaller businesses while giving MSMEs greater room to focus on business continuity and expansion.
According to IRB, more than 1.1 million businesses will benefit from the exemption following the government’s decision.
The tax department also provided an update on the adoption of Malaysia’s e-Invoice system, which was first implemented on Aug 1, 2024.
As of Aug 30, 2026, a total of 265,379 taxpayers had submitted e-Invoices, involving the issuance of more than 1.84 billion e-Invoices.
The tax authority said the figures demonstrate encouraging adoption among taxpayers, including MSMEs, as businesses increasingly transition towards digital record-keeping.
The e-Invoice initiative forms part of Malaysia’s broader digitalisation agenda and is intended to facilitate the systematic recording and storage of business transactions.
Despite the exemption for businesses below the new RM3 million threshold, the government continues to encourage MSMEs to participate in the e-Invoice system voluntarily.
HASiL said voluntary adoption would support the country’s broader aspiration to accelerate business digitalisation.
The tax authority said it remains committed to ensuring a smooth implementation of e-Invoicing through educational initiatives, continuous engagement and dedicated “hand-holding” programmes for businesses.
These initiatives include guidance and tutorials on using the MyInvois Portal, MyInvois mobile application and MyInvois e-POS platform.
The programmes are intended to improve awareness and understanding of e-Invoicing among MSMEs while helping businesses adapt to the digital tax administration system.
