📌LHDN e-Invoicing Compliance: Who Must Comply and When?
Malaysia is implementing mandatory e-Invoicing under a phased rollout by LHDN (Lembaga Hasil Dalam Negeri Malaysia). This initiative is part of the government's effort to digitize the tax system and improve transparency.
Here’s the latest revised implementation timeline:
| Taxpayer Category | e-Invoicing Start Date |
|---|---|
| Annual turnover > RM100 million | 1 August 2024 |
| Annual turnover RM25 million to RM100 million | 1 January 2025 |
| Annual turnover >RM500,000 to RM25 million | 1 July 2025 |
| Annual turnover RM500,000 to RM150,000 | 1 January 2026 |
| Annual turnover < RM150,000 | ❌ Exempt from e-Invoicing |
🏢 Who Is Affected by the e-Invoicing Implementation?
This mandate applies to most types of business entities in Malaysia, such as:
-
Sdn Bhd and Berhad companies
-
Sole proprietors and partnerships
-
Freelancers and independent contractors
-
Online sellers and e-commerce platforms
-
Foreign companies operating in Malaysia
📌 Note: If your business earns more than RM150,000 annually, you will be required to comply, even if you're a small business.
🧾 What Does Compliance Involve?
Businesses must:
-
Issue e-Invoices using LHDN’s MyInvois system or through Peppol-compliant software
-
Capture buyer and transaction data digitally
-
Maintain real-time invoice issuance and submission
-
Store invoices in a compliant digital format
🚀 Why Prepare in Advance?
Even if your compliance date is 2025 or 2026, preparing early ensures:
-
Smooth ERP or accounting software integration
-
Sufficient time for testing and employee training
-
Avoidance of costly disruptions or tax penalties
👣 How to Get e-Invoicing Ready
Start with these steps:
-
Identify your compliance tier based on annual revenue.
-
Evaluate your current invoicing system for e-Invoicing readiness.
-
Engage a tax or accounting advisor to guide your transition.
-
Set up and test integration with MyInvois or an approved vendor.
-
Train staff on how to issue, send, and archive e-Invoices properly.
🛠️ We Can Help You Comply with LHDN's e-Invoicing
Our accounting firm provides full support:
- Readiness assessments and audits
-
Software recommendations and setup
-
LHDN registration assistance
-
Ongoing compliance support
📞 Book a free consultation with our e-Invoicing specialists now.
TAN ACCOUNTING ADVISORY