We would like to share the latest update on Malaysia’s E-Invoice implementation, following the recent announcement by LHDN.
✅ Key Confirmation:
E-Invoice implementation will still begin on 1 January 2026.
There is no delay to the start date. However, the good news is that the transition (grace) period has been extended: 🔹Transition period extended from 6 months to 1 year 🔹Grace period: 1 January 2026 – 31 December 2026 🔹No penalties will be imposed during this transition period
This means businesses are still expected to start implementation when applicable, but will be given more time to adapt without enforcement pressure.
📌 Who Needs to Start E-Invoice & When? Implementation is determined based on your business commencement year and annual revenue.
1. Businesses Operating Before 2022 (Revenue assessed based on Year 2022 turnover)
If your financial year was changed in 2022, revenue must be prorated to a 12-month basis.
2022 revenue exceeded RM1 million ▶️E-Invoice effective from 1 January 2026
2022 revenue did NOT exceed RM1 million, but revenue exceeded RM1 million in any year between 2023–2025 ▶️E-Invoice effective from 1 July 2026
Revenue did NOT exceed RM1 million in 2022 and 2023–2025 ▶️Exempted from E-Invoice
2. Businesses Commenced Between 2023–2025
Revenue exceeded RM1 million during this period ▶️E-Invoice effective from 1 July 2026
Revenue did NOT exceed RM1 million ▶️Exempted from E-Invoice
📢 Important Reminder
1 January 2026 is NOT postponed
The only change is the extension of the transition period to 1 year
Businesses that are required to implement should still begin preparations and onboarding from the applicable start date
🌱 A Gentle Note to Business Owners
While the policy timeline remains unchanged, the extended transition period offers valuable breathing space.
This one-year grace period allows businesses to test, adjust, and familiarise themselves with the system, without the pressure of penalties.
There is no need to rush to perfection on Day 1.
What matters is starting, learning, and improving along the way. As e-Invoicing is a technical transition, we strongly encourage all clients to attend available seminars, workshops, or webinars conducted by:
LHDN Malaysia
Accounting software vendors
Tax and audit professionals
These sessions offer practical walkthroughs, system demonstrations, and tips to avoid disruptions when the e-Invoice system goes live.
Singapore