Malaysia has announced a significant timing change to its MyInvois e-invoicing rollout: mandatory adoption for businesses with annual sales between RM1 million and RM5 million, previously expected to start on 1 January 2026, has been extended by one year.
1. The latest update: a one-year postponement and an extended penalty-free transition
On 5 January 2026, the government confirmed that the e-invoicing requirement for the RM1m–RM5m segment is postponed by 12 months, with the announcement explicitly referencing an extension of the penalty-free transition period for this group.
The rationale communicated publicly was that some companies are not yet ready, and that implementation cost remains a key concern for parts of the market.
As part of the same announcement, the government also stated it would expand the ability to issue consolidated e-invoices to include the retail and building materials sectors.
2. Why these matters: the postponement sits on top of the RM1 million threshold change
The January 2026 postponement is best understood alongside a second major policy adjustment already made in December 2025: the e-invoicing exemption threshold was raised from RM500,000 to RM1,000,000 in annual turnover.
This effectively removes businesses below RM1 million from mandatory scope under the current framework and reshapes the implementation waves.
Operationally, this also means the previously anticipated wave for businesses in the RM500,000–RM1 million range is treated as withdrawn/cancelled under the revised threshold approach.
3. Updated rollout snapshot
With the latest postponement, the key takeaway for many implementation roadmaps is simple:
- RM1m–RM5m segment: implementation is now positioned for 1 January 2027, with an indicated soft launch approach for this group.
The remaining phases still apply to larger taxpayers:
- > RM100 million – already in scope since 1 August 2024
- > RM25 million – from 1 January 2025
- > RM5 million – from 1 July 2025
4. What to expect next
The announcement confirms two immediate points:
- Mandatory e-invoicing for businesses with RM1m–RM5m annual sales is postponed by one year to 1 January 2027.
- Consolidated e-invoicing is expected to expand to cover retail and building materials.
RM1m–RM5m businesses have an additional year and a longer transition period, while the rollout continues under MyInvois.
