Do Businesses Under RM1m or RM3m Need E-Invoicing? The MyInvois Exemption Checklist (2026)
No. From 1 Sep 2026, businesses with turnover below RM3m are exempt from LHDN e-invoicing. What to check if you're near the threshold, and when to opt in.
TL;DR — No. From 1 September 2026, Malaysian businesses with annual turnover or revenue below RM3 million don’t have to implement LHDN e-invoicing (LHDN statement, 30 Aug 2026). That covers every business under RM1 million too. LHDN still encourages voluntary adoption. If you’re close to RM3 million, or your customers want validated e-invoices, the checklist below tells you what to prepare.
This article used to be a Phase 3 checklist for businesses under RM1 million. Those businesses are no longer in scope, so we’ve rewritten it for the current rule.
Do businesses under RM1 million need e-invoicing?
No. Businesses with annual turnover below RM1 million have been exempt since 1 January 2026, when the government raised the exemption threshold from RM500,000 to RM1 million (Bernama, 6 Dec 2025). The planned final phase for the smallest businesses was dropped at the same time.
Do businesses under RM3 million need e-invoicing?
No, not from 1 September 2026. LHDN raised the threshold from RM1 million to RM3 million with effect from 1 September 2026, following the Prime Minister’s National Day announcement. LHDN put the number of businesses exempted at more than 1.1 million (LHDN statement via Bernama, 30 Aug 2026).
How has the threshold changed?
| Date announced | Exemption threshold (annual turnover) | Source |
|---|---|---|
| 5 Jun 2025 | Below RM500,000 | Bernama |
| 6 Dec 2025 (effective 1 Jan 2026) | Below RM1 million | Bernama |
| 30 Aug 2026 (effective 1 Sep 2026) | Below RM3 million | Bernama |
The threshold has moved three times since June 2025. Check LHDN’s official site before you rely on it.
1. Confirm which side of RM3 million you’re on
The test is annual turnover or revenue, not SST registration or legal form. Sole proprietors, partnerships, Sdn Bhds and LLPs are all measured the same way.
✅ Action: Look at your most recent full-year turnover (your last Form B, Form P or Form C, or your management accounts). LHDN’s e-Invoice Guideline sets out exactly how the threshold is measured, including which year counts and how new businesses are treated. Check it if you’re anywhere near RM3 million.
You’re also outside e-invoicing if you only earn employment income, or only investment income such as rent, dividends or interest, and don’t carry on a business.
2. If you’re near RM3 million, watch your growth
The exemption depends on your turnover. If your business grows past RM3 million, you’ll come into scope. Build the habits now, so crossing the line isn’t a scramble:
- Keep a clean customer master with each customer’s TIN and registration number.
- Use invoicing software that can produce e-invoices when you need them.
- Track your rolling 12-month turnover each quarter.
3. Should you adopt e-invoicing voluntarily?
Maybe. LHDN “strongly encourages” small businesses to adopt e-invoicing voluntarily (LHDN statement, 30 Aug 2026). Two reasons to do it:
- Your customers ask for it. Larger buyers are in scope and may prefer suppliers who can issue validated e-invoices.
- You expect to grow past RM3 million. You’ll already have the process in place.
The main cost is the admin work. LHDN’s FAQ says a business that has implemented e-invoicing can’t compel a supplier who isn’t yet required to do so to issue one (LHDN General FAQs). Until you opt in, you can keep issuing your normal invoices and receipts.
✅ Action: Ask your three largest business customers whether they need e-invoices from you. Their answer decides most of this.
4. If you do opt in: check your TIN
Every e-invoice carries the supplier’s and the buyer’s Tax Identification Number (TIN). The prefix depends on the taxpayer type (LHDN TIN guide, Mar 2023; MyInvois SDK FAQ):
| Taxpayer type | TIN prefix |
|---|---|
| Individual, including sole proprietor | IG (replaced the old SG and OG prefixes) |
| Company (Sdn Bhd, Bhd) | C |
| Partnership | D |
| Limited liability partnership | PT |
| Cooperative society | CS |
| Association | F |
| Trust body | TA |
| Deceased person’s estate | TP |
Non-individual TINs now end in 0. Check yours on MyTax.
5. If you do opt in: pick a submission channel
LHDN offers two channels, and you can use both as long as you don’t submit the same e-invoice twice (LHDN General FAQs, Q3):
- MyInvois Portal: free and web-based. It handles single e-invoices and batch upload from a spreadsheet.
- API: through your accounting software, your own system, or a service provider such as a Peppol provider.
6. If you do opt in: know the timing rules
- Consolidated e-invoices: if your buyers don’t ask for an e-invoice, you can usually record a month’s sales in one consolidated e-invoice. Issue it within 7 calendar days after month-end (LHDN General FAQs, Q24). Some activities listed in LHDN’s Specific Guideline can’t be consolidated, and LHDN has changed the consolidation rules for large transactions more than once. Check the current Specific Guideline.
- Cancellation: you can cancel a validated e-invoice within 72 hours of validation (MyInvois SDK). After that, correct it with a credit, debit or refund note.
- Buyer rejection: a buyer can request rejection within 72 hours of validation (MyInvois SDK).
- Records: keep your e-invoices and supporting records for 7 years.
7. Pre-flight checklist (voluntary adopters)
- TIN confirmed on MyTax and entered correctly in your invoicing software
- Top customers’ TINs and registration numbers collected
- Sandbox test passed (if you submit by API): a test e-invoice validated in LHDN’s pre-production environment
- Cancellation and rejection handling agreed: who acts within the 72-hour window
- Consolidation schedule written down if you’ll consolidate: which day, and who does it
- Downtime plan: LHDN’s FAQ says that if MyInvois is down, you have 72 hours after it comes back to issue the e-invoice
- 7-year retention confirmed for e-invoices and source records
What about IntBooks?
IntBooks is in closed beta. It prepares LHDN MyInvois e-invoices from your normal invoices, so you can start voluntarily and keep the same workflow if you later cross RM3 million. You can request access.
If you’d rather have someone handle the setup, see our e-invoice compliance service.