In December 2025, Malaysia raised the e-invoice exemption to RM1 million in annual turnover and scrapped the phase that would have caught the smallest businesses. Most micros are now out entirely. Here's the line, what puts you back on the hook, and the one deadline that still bites.
The exemption is a hard line at RM1 million in annual turnover, read off your most recent Borang B (sole prop) or Form C (Sdn Bhd). Find your band below.
The bulk of micros: warung, freelancers, tuition centres, home bakers, most kedai. No MyInvois obligation at all. You issue normal receipts and file Borang B as usual.
Still exempt, but you're closest to the line. If you're growing, watch the turnover figure you actually file, because crossing RM1m moves you into the mandate.
Mandatory since 1 Jan 2026, but LHDN granted a penalty-free transition to 31 Dec 2027. You can issue consolidated e-invoices and face no fines before then. Enforcement starts 1 Jan 2028.
Already live and enforced (Phase 3 from Jul 2025, earlier for bigger firms). If you're still issuing PDF-only invoices, you're exposed today.
Fast growth can move you from exempt into the RM1m–5m band. It's based on your latest filed turnover, not a forecast — check the actual number before you assume you're out.
Any taxpayer can join MyInvois early, often because a big customer (a Phase 1–2 company) requires it. Once you opt in, you're treated as mandated from your activation date.
Exemption isn't permanent policy — thresholds have moved before, and one large customer can ask you to issue e-invoices tomorrow. None of this costs anything, and all of it turns the eventual switch into a shrug.
If you file income tax you already have one — look top-right on MyTax. If not, register at mytax.hasil.gov.my. It is free, and it is the key to everything MyInvois.
The day a business customer needs an e-invoice, having their TIN saved turns a scramble into a two-minute job. Collect them as you go, not under pressure.
The exemption is a turnover line, not a feeling. Know roughly where you sit against RM1m so a threshold move or a good year doesn't catch you out.
This part is for the RM1m–RM5m band — the only micros still on the hook. You have until 31 Dec 2027 with no penalties, so there's no cramming. Here's the order to do it in, whenever you start.
Log in to MyTax. TIN is top-right of your profile. New registration takes 2 working days to issue — the one step with real lead time, so start here.
Accept terms, pick your MSIC code, confirm your address matches SSM records. This unlocks the sandbox for the test run later.
Message them on WhatsApp. Save TIN + BRN to your contact list. Twenty customers will cover 80% of your B2B volume — highest-leverage hour of the whole prep.
Mostly B2B? Default to standard e-invoice per sale. Walk-in cash? You'll use consolidated B2C — pick the roll-up day (the 7th of the following month is a safe default).
LHDN's catalogue has ~200 codes. For most micros, 3–5 cover everything. Do this once, reuse forever.
Your accounting software, a middleware, or a purpose-built app. Must support Peppol BIS 3.0 and the MyInvois sandbox.
Submit a dummy invoice in MyInvois pre-production. Watch the UUID come back. Inspect the QR code. Fix anything weird now, not on your first real one.
If staff issue invoices, walk them through the new flow. Print a one-pager. Pin it to the counter. Nobody should be figuring this out live.
Note No hard dates here on purpose — the RM1m–5m grace runs to 31 Dec 2027, and the only step with real lead time is the TIN (a couple of working days). Start whenever; just don't leave the TIN to the final week.
Exempt today, this is what flips the day you cross RM1m or opt in. Most of it is one-time plumbing; your day-to-day routine changes surprisingly little once it is wired.
If you're under RM1m, there's nothing to miss — you're exempt. The fine schedule only bites once you're in scope: RM200 minimum per non-compliant invoice, RM20,000 maximum, per offence, under Section 120 of the Income Tax Act. Fines are capped at the offence level, not the return.
For the RM1m–RM5m band, LHDN waived penalties entirely until 31 December 2027 and allows consolidated e-invoices in the meantime. Enforcement begins 1 January 2028 — treat that date, not the grace period, as your real deadline.
Until 1 January 2028, non-compliance carries no fine for your band. Use the prep path above without pressure.
LHDN explicitly allows the RM1m–5m band to roll counter sales into one monthly submission during the transition. Use it.
The government allows a full one-year capital allowance on e-invoice software and hardware. Ask your accountant to book it the year you set up.
Even if you're exempt, LHDN lets any taxpayer join MyInvois voluntarily. Once you activate, you're treated as mandated from that date — the 72-hour validation window, the QR-coded PDFs, the full machinery. There's no going back, so opt in on purpose, not by accident.
Four phases, four invoice types, every rejection reason.
One rolled-up invoice per month for walk-in sales.
Where to get yours, how to validate theirs.
Kiira keeps your books in WhatsApp for free — no MyInvois needed while you're exempt. The day you cross RM1m or a customer asks, the Compliance plan switches e-invoicing on. No rebuild.