1. Malaysia’s Revised e-Invoicing Implementation Timeline
The Malaysian government has updated the e-Invoicing implementation timeline, ensuring a phased transition for businesses based on annual turnover. This structured rollout aims to provide businesses with sufficient time to adapt, minimizing disruptions in compliance.
1.1 New e-Invoicing Phased Rollout
The latest timeline is as follows:
| Targeted Taxpayers | Implementation Date |
| Annual turnover > RM100 million | 1 August 2024 |
| Annual turnover > RM25 million up to RM100 million | 1 January 2025 |
| Annual turnover > RM500,000 up to RM25 million | 1 July 2025 |
| Annual turnover ≤ RM500,000 | 1 January 2026 |
1.2 Determination of Annual Turnover for Compliance
Businesses must determine their annual turnover or revenue based on:
- Audited financial statements: Using the 2022 financial year’s statement of comprehensive income.
- Non-audited financial statements: Based on revenue reported in the 2022 tax return.
- Change in accounting year: Revenue will be pro-rated to a 12-month period to determine the implementation date.
2. Interim Relaxation Measures for e-Invoicing Compliance
To ensure a smooth transition, the Malaysian government has introduced a six-month interim relaxation period for each phase of implementation. During this time, businesses can gradually adopt e-Invoicing without facing immediate compliance pressure.
2.1 Interim Relaxation Period Breakdown
| Targeted Taxpayers | Interim Relaxation Period |
| Annual turnover > RM100 million | 1 August 2024 – 31 January 2025 |
| Annual turnover > RM25 million up to RM100 million | 1 January 2025 – 30 June 2025 |
| Annual turnover > RM500,000 up to RM25 million | 1 July 2025 – 31 December 2025 |
| Annual turnover ≤ RM500,000 | 1 January 2026 – 30 June 2026 |
2.2 Key Relaxations Allowed During Transition
During the interim relaxation period, businesses will be permitted to:
- Issue consolidated e-Invoices covering all activities and transactions.
- Issue consolidated self-billed e-Invoices for self-billing scenarios.
- Input custom information in the “Description of Product or Service” field, without restrictions on receipt or statement references.
- Not issue individual e-Invoices upon buyer or supplier request, provided a consolidated e-Invoice or self-billed e-Invoice is issued instead.
3. What This Means for Businesses
Businesses must act proactively to ensure compliance with the new e-Invoicing framework. Specific steps different business sectors should take include:
Large Enterprises (Turnover > RM100M)
- Enhance ERP and accounting software to integrate real-time e-Invoicing solutions by August 2024.
- Train finance and accounting teams on Malaysia’s e-Invoicing requirements and workflows.
- Engage with tax consultants to ensure compliance with government regulations and potential tax benefits.
Mid-Sized Companies (Turnover RM25M – RM100M)
- Assess existing invoicing systems and prepare for integration by January 2025.
- Ensure suppliers and business partners are also prepared to comply with e-Invoicing mandates.
- Take advantage of the interim relaxation period to test and adjust invoicing workflows before full enforcement.
SMEs (Turnover RM500K – RM25M)
- Adopt digital invoicing platforms early to avoid last-minute system overhauls before July 2025.
- Use government resources such as free e-Invoicing training and support services to ease the transition.
- Review cash flow and financial operations to manage compliance costs effectively.
Micro and Small Businesses (Turnover ≤ RM500K)
- Plan ahead for the 2026 implementation to minimize disruption to business operations.
- Explore simplified e-Invoicing solutions suited for smaller operations.
- Utilize the interim period for adaptation without immediate financial burden.
The phased implementation and interim relaxation period provide businesses with additional flexibility to comply with e-Invoicing requirements. By preparing in advance, companies can streamline operations, enhance tax reporting accuracy, and ensure a seamless transition into Malaysia’s digital tax ecosystem.
