Updated E-Invoicing Timeline in Malaysia: Key Phases, Exemptions & MSME Guidelines

As part of Malaysia’s digital transformation journey, the implementation of e-Invoicing is being rolled out in phases to ensure a seamless transition for businesses. The phased approach, based on annual turnover or revenue thresholds, allows companies ample time to adapt to the new requirements. Below, we provide a clear and concise overview of the updated implementation timeline, exemptions, and key considerations for businesses, including Micro, Small, and Medium Enterprises (MSMEs).

Updated E-Invoicing Implementation Timeline

The e-Invoice rollout is structured into four phases, with each phase targeting businesses based on their annual turnover or revenue:

Note: For new businesses or operations commencing from 2023 onwards, the e-Invoice implementation date is July 1, 2025.

Determining Annual Turnover or Revenue

The annual turnover or revenue for e-Invoice implementation is determined based on financial year 2022 data:

Exemptions from E-Invoicing

The following entities are exempted from implementing e-Invoicing:

Important Notes:

Key Considerations for MSMEs

1. Are MSMEs Required to Issue E-Invoices?

All businesses, including MSMEs, are required to implement e-Invoicing according to their respective timelines. However, businesses with an annual turnover or revenue below RM150,000 are exempted.

2. When Must MSMEs Implement E-Invoicing?

MSMEs must implement e-Invoicing starting from January 1 of the second year following the year in which their annual turnover or revenue exceeds RM150,000.

3. What if an MSME’s Turnover Falls Below RM150,000 After Implementation?

Once e-Invoicing is mandated, businesses must continue issuing e-Invoices even if their turnover falls below the threshold in subsequent years.

4. Can MSMEs Issue Consolidated E-Invoices?

Yes, MSMEs can issue consolidated e-Invoices on a monthly basis to record all transactions within the month, except for specific activities outlined in the e-Invoice Specific Guideline (e.g., sale of motor vehicles, flight tickets, luxury goods, etc.).

5. E-Commerce Transactions:

For sales conducted through e-commerce platforms, the obligation to issue e-Invoices rests with the platform provider. MSMEs are only required to issue e-Invoices for sales through physical stores.

Activities Requiring Individual E-Invoices

For certain transactions, consolidated e-Invoices are not permitted. These include:

The phased implementation of e-Invoicing ensures a structured and manageable transition for businesses of all sizes. By understanding the timeline, exemptions, and specific requirements, your business can prepare effectively and avoid potential compliance issues.

Join our Biztrak MSB E-Invoicing Training to learn how to seamlessly implement e-Invoicing using Biztrak MSB accounting software. Our expert-led sessions will guide you through the process, ensuring you’re fully prepared for the transition. Don’t miss this opportunity to stay ahead of the curve—enroll today and embrace the future of digital invoicing with confidence!

Click the button below to enrol in Biztrak MSB E-Invoicing Training!