e-Invoicing in Malaysia (2026): the LHDN MyInvois guide for SMEs

What is e-invoicing?

An e-invoice is a digital invoice that is submitted to LHDN’s MyInvois system for validation before it is shared with your customer. MyInvois checks the invoice in near real time and returns a unique identifier plus a QR code, which the buyer can use to confirm the invoice is genuine. It replaces paper and PDF invoices for tax purposes and covers business-to-business, business-to-consumer and business-to-government transactions.

Implementation timeline

Rollout is staged by annual turnover:

Each phase comes with a relaxation period after its start date, during which businesses may issue consolidated e-invoices and enforcement is lighter, provided the rules are followed.

Who is exempt

In December 2025 the Government raised the permanent exemption threshold from RM500,000 to RM1,000,000 in annual turnover and cancelled the planned phase for the smallest businesses. So businesses below RM1 million turnover are currently outside the mandate. Certain categories (for example some government bodies and specific income types) are also exempt. Because thresholds have already changed once, confirm your own position on the official LHDN portal before deciding.

What an e-invoice must contain

LHDN specifies a defined set of mandatory and optional data fields (around 55 in total). Practically, you will need each party’s Tax Identification Number (TIN), business registration details, the relevant MSIC business code, line items, tax amounts (such as SST where applicable), and the validation reference returned by MyInvois.

Penalties

Failing to issue a validated e-invoice can attract a fine of RM200 to RM20,000, or imprisonment, for each instance of non-compliance. The relaxation period reduces this risk early on, but the safest approach is to be ready before your phase’s grace period ends.

A checklist for SMEs

• Check your annual turnover against the phase table to confirm if and when you are in scope.
• Make sure you have a valid TIN for your business, and collect customers’ and suppliers’ TINs.
• Confirm your MSIC business code and keep your business registration details current.
• Tidy up your customer, supplier and product records so invoice data is clean and complete.
• Decide how you will submit: directly via the MyInvois portal, or through an LHDN-listed e-invoicing solution / API.
• Keep your books reconciled so the figures you report match your accounting records.

How AccountMi fits in

AccountMi is cloud accounting and payroll software for Malaysian SMEs. It keeps your invoicing, bookkeeping, bank reconciliation and MFRS-aligned reports accurate and audit-ready, with an SST-ready chart of accounts — so the records behind your invoices are always in order. For the MyInvois submission itself you use LHDN’s portal or an LHDN-listed e-invoicing solution; AccountMi keeps the accounting clean alongside it.

Frequently asked questions

What is MyInvois?

MyInvois is the e-invoicing platform run by LHDN (Lembaga Hasil Dalam Negeri). Businesses submit invoice data to MyInvois, which validates it in near real time and returns a unique identifier and a QR code that must appear on the invoice given to the buyer.

Who has to issue e-invoices in 2026?

As of 2026, businesses with annual turnover of RM1 million and above are within scope. Phase 4 — covering turnover of RM1 million to RM5 million — began on 1 January 2026, joining the larger businesses already onboarded in Phases 1 to 3.

Is my small business exempt?

Businesses with annual turnover below RM1 million are currently exempt — the Government raised the permanent exemption threshold from RM500,000 to RM1,000,000 in December 2025 and cancelled the planned phase for the smallest businesses. Always confirm your status on the LHDN MyInvois portal, as policy can change.

What are the penalties for not issuing an e-invoice?

Failing to issue a validated e-invoice can attract a fine of between RM200 and RM20,000, or imprisonment, for each non-compliance. A relaxation period applies after each phase begins, during which consolidated e-invoices are allowed and enforcement is lighter if you follow the rules.

Does AccountMi submit e-invoices to MyInvois?

AccountMi is cloud accounting and payroll software — it keeps your invoicing, bookkeeping, bank reconciliation and MFRS-aligned reports in order so your records are accurate and audit-ready. It does not currently submit invoices to MyInvois on your behalf; for that you use the MyInvois portal or an LHDN-listed e-invoicing solution.