Everything MSMEs Need to Know About the Latest LHDN e-Invoice Timeline in Malaysia

As Malaysia embraces digitalisation, LHDN’s e-Invoice implementation is set to transform how businesses manage invoicing, compliance, and tax reporting. If you're a business owner—especially an MSME (Micro, Small, and Medium Enterprise)—it’s crucial to understand when and how to adopt e-Invoicing under the official guideline from LHDN Malaysia.

1. LHDN e-Invoice Mandatory Implementation Timeline

LHDN has introduced a phased implementation plan based on annual turnover (updated as at 15 Jun 2025):

These dates define when you must begin issuing e-Invoices validated by LHDN via the MyInvois system or integrated APIs.

2. Do MSMEs in Malaysia Need to Comply?

In general, yes—if you run a business, you're required to follow LHDN’s e-Invoice Malaysia timeline. But there's a key exemption:

If your total annual turnover is below RM500,000, you are exempted from issuing e-Invoices—unless you fall into specific categories.

⚠️ Not All MSMEs Are Exempt

Even with revenue under RM500,000, your business must issue e-Invoices if:

📌 Example: A company earning RM400,000 but is a subsidiary of a larger group with turnover ≥ RM500,000 must still issue e-Invoices from 1 July 2026.

3. What If You Cross the RM500,000 Threshold?

You’ll need to start issuing e-Invoices from 1 January of the second year after the year you crossed RM500,000 in revenue.

📌 Example: Your revenue hits RM505,000 in 2026 → Your e-Invoice start date is 1 January 2028.

4. How Is Revenue Calculated?

It depends on your accounting setup:

📌 Example: Awiyah owns three small businesses. If combined turnover > RM500,000 in 2026, she starts e-Invoicing on 1 Jan 2028.

5. Can I Get Exempted Later If Revenue Drops?

No. Once you're required to implement e-Invoicing, you must continue, even if future revenue falls below RM500,000. There’s no “reverse exemption”.

6. Must I Issue Consolidated or Self-Billed e-Invoices?

If you're exempted, you're not required to issue these. Otherwise, you can issue monthly consolidated e-Invoices, provided you issue receipts for each transaction.

Note: If your gross takings > RM150,000/year, you must issue serially numbered receipts and include these in your e-Invoice.

7. Selling on e-Commence platforms such as Shopee or Lazada?

The platform provider will issue the e-Invoice on your behalf. But you’ll need to issue your own e-Invoices for in-store or direct sales.

8. Can I Start e-Invoicing Early?

Yes, you can voluntarily adopt e-Invoicing before your scheduled date. Many businesses choose to do this to get familiar with the system.

9. Can Large Companies Force MSMEs to Start Early?

No. Your obligation begins only when your timeline starts. Large enterprises cannot compel you to issue e-Invoices before that.

Source: LHDN General E-Invoice FAQs

With the latest Malaysia e-Invoice schedule now in place, MSMEs should prepare early, understand their obligations, and leverage available support tools. At Biztrak, we’re committed to helping you adopt the right e-Invoicing solutions—seamlessly and affordably.

📞 Talk to us today to find out how Biztrak can make your transition to LHDN e-Invoice compliance easier than ever.