(Tax Update) Malaysia’s New E-Invoice Implementation Dates (Updated as of June 2025)

(TAX UPDATE) Malaysia’s New E-Invoice Implementation Dates (Updated as of June 2025)

“Eh boss, need to e-Invoice ke?”
That innocent question is now keeping thousands of SMEs awake at night.

The deadline is near, but most businesses are still in full denial mode.

And let’s be honest. We Malaysians are world champions of last-minute everything. Road tax, passport renewal, LHDN filing… if got deadline, we push it to the edge.
Even I, a licensed tax agent, submitted my personal tax return on the deadline night, with laptop in one hand and coffee in the other.

So when SME bosses tell me, “Tak ready lah,” I completely understand.

The Facts: Updated E-Invoice Timeline (As at 5 June 2025)

First things first: your implementation date is based on your 2022 audited financial statements or tax return, not your gut feeling.

Let’s group this clearly:

Phase 1 : Aready Started ( Go-Live Date: 1 August 2024)

Who: Businesses with turnover above RM100 million (based on 2022 accounts)
Status: Too late to prepare. You’re already live. If you’re still not compliant, you’re playing catch-up.

Phase 2: Countdown Underway ( Go-Live Date: 1 January 2025)

Who: Businesses with turnover between RM25 million and RM100 million
Status: Just over 6 months. Preparation should already be in progress.

Phase 3: Ticking Clock (Go-Live Date: 1 July 2025)

Who: Businesses with turnover between RM1 million and RM25 million
Status: Only weeks to go. If you haven’t started, you’re in serious trouble.

Phase 4: Small but Not Forgotten (Go-Live Date: 1 January 2026)

Who: Businesses with turnover between RM500,000 and RM1 million
Status: You’ve got more time but don’t sit back and relax. Early preparation saves money and headache later.

New businesses (years 2023 to 2025) – 1 July 2026 for businesses commencing during the years 2023 to 2025 with annual turnover / revenue of at least RM500,000

New businesses (year 2026 onwards) – 1 July 2026 or upon date of commencement of operations for businesses which commences in year 2026 onwards. Where the first year’s turnover / revenue is less than RM500,000 the implementation date will be 1 January of the second year following the year of achieving an annual turnover / revenue exceeding RM500,000

Turnover Below RM500,000

Temporary exemption. Keyword: temporary. IRB is watching quietly.

e-Invoice for Transactions Above RM10,000: No More Bundling After 1 Jan 2026

Starting 1 January 2026, you cannot issue a consolidated e-Invoice for any single transaction exceeding RM10,000.

Each such transaction must be supported by its own e-Invoice, no matter how many similar transactions you have in a day with the same customer.

The latest e-Invoice Specific Guideline (updated 5 June 2025) is quite clear — there's no special exception for self-billed transactions above RM10,000. So the same rule applies : One transaction, one e-Invoice.

The Reality on the Ground

In the past few months, I’ve been checking with my SME clients, especially those in Phase 3. I ask: “Got start e-Invoice preparation?”
Here are the real answers I get:

  • “Wait until change of government lah.”

  • “Business tak besar, no need right?”

  • “No accountant since Chinese New Year.”

  • “Tak ada duit to upgrade.”

  • “We wait and see lah. Maybe postpone again.”

These are not jokes. These are real quotes.

Some SME owners still think this is optional. Others believe e-Invoice will quietly disappear like GST. Let me be clear — this is not a test. It’s a national policy.

IRB is pushing this to improve transparency, reduce leakage, and match the global tax movement. It’s coming, ready or not.

If You Wait, You Pay

Delaying means:

  • Training in panic mode

  • Expensive mistakes

  • Missed deadlines

  • Compliance risk

Remember, last-minute work = higher cost + lower quality. Especially when your competitors are already running ahead.

What To Do Now

  • Confirm your 2022 revenue — know your phase.

  • New Businesses (Incorporated Between 2023–2025)

    • If your first-year revenue reaches RM500,000, your e-Invoice go-live date will be 1 July 2026.

  • New Businesses (Incorporated From 2026 Onwards)

    • If your first-year revenue is RM500,000 or more, you must start e-Invoicing on 1 July 2026 or on the date your business starts operations, whichever is later.

    • If your first-year revenue is below RM500,000, your go-live date will be 1 January of the second year after your business hits RM500,000 in annual revenue.

  • Speak to your accountant or tax agent — stop guessing.

  • Review your current accounting process — Excel won’t cut it anymore.

  • Contact your software provider — ask about e-Invoice integration.

  • Start testing — MyInvois sandbox is available. Use it.

Final Words: Hope is Not a Strategy

If you’re banking on another postponement — think again.

IRB has been surprisingly consistent this time. The only thing that may delay this is another pandemic. And we don’t want that.

So let’s stop hoping.
Because when the IRB knocks, “I didn’t know” won’t work anymore.

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