Mandatory e-Invoicing in Malaysia: Rescheduling for Smaller Enterprises and What You Need to Know

On 5 June 2025, the Inland Revenue Board of Malaysia (IRBM) published a revised timetable for the introduction of e-invoicing in Malaysia. The updated schedule is as follows:

• Taxpayers with annual turnover below MYR 500,000 are, for the time being, exempt from e-invoicing.
• Implementation dates for specific turnover bands have been deferred as follows:
  • From 1 August 2024 for turnover in excess of MYR 100 million (unchanged)
  • From 1 January 2025 for turnover between MYR 25 million and MYR 100 million (unchanged)
  • From 1 July 2025 for turnover between MYR 5 million and MYR 25 million (previously for those over MYR 500,000)
  • From 1 January 2026 for turnover between MYR 1 million and MYR 5 million (previously up to MYR 500,000)
  • From 1 July 2026 for turnover up to MYR 1 million (new)
• The IRBM has also issued updated guidance, namely e-Invoice Guideline Version 4.4 and Specific Guideline Version 4.2.
• For businesses established between 2023 and 2025 with turnover of at least MYR 500,000, the effective date is 1 July 2026.
• For businesses established from 2026 onwards, e-invoicing will apply from 1 July 2026 or upon commencement of operations.
• Should a first-year turnover fall below MYR 500,000, e-invoicing must be adopted from 1 January of the second year after the MYR 500,000 threshold is reached.

Overview the Implementation of e-Invoicing in Malaysia

According to IRBM, an e-invoice is “a digital representation of a transaction between a supplier and a buyer,” replacing paper or PDF invoices, credit notes and debit notes with a structured, machine-readable format that IRBM can validate in near real-time. This initiative supports the Twelfth Malaysia Plan’s drive to strengthen digital infrastructure and aims to:

1. Streamline the creation and submission of transaction documents.
2. Reduce manual data-entry errors and improve efficiency.
3. Facilitate tax return filing via system integration.
4. Enable phased adoption for MSMEs, allowing gradual onboarding to digital processes.

e-Invoicing applies to B2B, B2C and B2G transactions, covering all persons in Malaysia with annual turnover above specified thresholds.

The e-Invoicing Model in Malaysia

IRBM offers two main e-invoice models:

1. Comply with e-Invoicing in Malaysia via the MyInvois Portal

Taxpayers log into the MyInvois portal and either manually key in each invoice’s details or batch-upload them via CSV or XML files, making sure all required fields are complete before sending the e-Invoice payload to the Inland Revenue Board of Malaysia (IRBM). During this submission process, the IRBM validates the payload’s format and data integrity and returns a notification of the validation outcome. However, unlike with API integration, this manual approach can be time-consuming and is not the most efficient method, particularly for businesses issuing large volumes of invoices.

Once an e-invoice is successfully validated, taxpayers share a visual version – complete with an embedded QR code – with their buyers; if any issues are identified, they use the portal to manage rejections or cancellations. Finally, all processed e-invoices and related notifications are stored electronically, giving taxpayers easy access to their records and enabling seamless reporting via the portal’s dashboards.

2. Benefits of e-Invoicing via API Integration (SDK)

Larger enterprises can integrate directly via API or use an SDK, automating steps 1–9 above within their ERP systems – ideal for high-volume, real-time e-invoice issuance and seamless tax compliance.

Both models adhere to the UBL 2.1 standard, ensuring compatibility with international networks such as Peppol. Need help? Contact us today.

e-Invoicing Compliance in Malaysia: Affected Transactions under the IRBM e-Invoice Guidelines

All sales of goods and provision of services exceeding RM 10,000 must be invoiced individually from 1 January 2026; consolidated e-invoices will no longer be permitted for such transactions. However, during each phase’s six-month interim relaxation, taxpayers may issue consolidated e-invoices – including self-billed invoices – and enter any details in the “Product or Service Description” field; if a buyer requests a detailed invoice, the supplier can still issue a single consolidated e-invoice rather than individual ones.

Transactions include, but are not limited to:

• B2B sales of goods and services.
• B2C retail transactions via e-POS.
• Returns, credits, and self-billed expenses (e.g. foreign purchases).
• Consolidated monthly billing for non-requesting buyers.

Key Role Players in e-Invoice Implementation

The Inland Revenue Board of Malaysia (IRBM) issues the e-invoicing guidelines, operates the MyInvois portal and validates all electronic invoices, while the Malaysia Digital Economy Corporation (MDEC) drives the supporting digital transformation. Accredited software providers and ERP vendors supply the necessary APIs, SDKs and integration services to automate invoice issuance, and banks and fintech firms enable seamless e-POS and QR-code payment integration. On the receiving end, businesses and consumers act as buyers of e-invoices, and international standards bodies – such as Peppol – ensure global interoperability across the entire ecosystem.

How are Different Sectors affected by the e-Invoicing Guidelines under the National e-Invoicing Initiative?

e-Invoicing Implementation in the Healthcare Sector

Healthcare providers can largely continue existing invoicing arrangements under the e-invoice mandate. Hospitals may issue invoices or bills directly to self-paying patients, through third-party administrators (TPAs) or managed care organisations (MCOs), to insurers or corporate bodies, and – for minors – the patient’s guardian. If a patient requests an e-invoice, the hospital must issue it upon finalisation of services; if not, it can aggregate non-e-invoice transactions and submit a consolidated e-invoice within seven calendar days after month-end. Independent consultants under co-provision arrangements issue separate e-invoices to patients, while outsourced consultants issue e-invoices to the hospital as per their contract. Locum doctors and nurses who contract for service must issue e-invoices; those under employment contracts remain exempt for now.

Mandatory e-Invoicing in the Construction Industry

Contractors must issue e-invoices for all progress claims, whether certification of work is required or not, to substantiate income from construction activities. Charges to subcontractors – including penalties – also require e-invoices, and materials purchased on behalf of an owner must be invoiced as e-invoices under the same arrangement. Main contractors can maintain their current billing cycles, but all invoices – whether individual or periodic statements – must conform to the e-invoice XML/JSON format for IRBM validation. Note that consolidated e-Invoices are not permitted for sales of construction materials under the Construction Industry Development Act 1994.

e-Invoicing Compliance in the Aviation Sector

Both local and foreign airline operators must issue individual e-invoices for all flight tickets and private air charter services where the point-of-sale is Malaysia; consolidated e-invoices are expressly disallowed for these transactions. To address data-protection constraints, IRBM permits airlines to use “General Public” as the Buyer’s name, “EI00000000020” as the TIN, and “NA” for BRN when passengers do not require an e-invoice.

How to Implement the e-Invoicing System in the Tourism Sector

Travel agencies collecting non-refundable deposits on tour packages must issue e-invoices for those deposits; refundable deposits remain outside the e-invoice requirement. A separate e-invoice should then be raised for the balance payment. Local tour guides must issue e-invoices to Malaysian travel agencies for guide services, while foreign tour guides trigger a self-billed e-invoice by the agency. Bundled packages (flight, accommodation, guides) follow the same rule: individual e-invoices for each component if requested, otherwise consolidated billing according to IRBM guidelines.

Finding an e-Invoicing Solution in the Telecommunications & E-Commerce Sector

Telecom operators and e-commerce platforms that issue periodic statements (monthly, quarterly, etc.) can continue current practices but must submit each statement as an XML/JSON e-invoice for validation, then convert it back to the familiar visual statement format for customers. This flexibility minimises disruption, allowing businesses to aggregate multiple transactions – such as prepaid top-ups or online retail sales – into a single e-invoice per billing cycle.

Adopt e-Invoicing in the Insurance and Takaful Sector

Insurance and takaful companies may continue to issue annual premium statements and use them as consolidated e-invoices for policyholders who do not request individual e-invoices. Detailed breakdowns of premium components (e.g., “014: Education and medical benefits,” “015: Takaful or life insurance”) must be included in each e-invoice. For claims and benefit payments – such as maturity payouts – companies issue self-billed e-invoices to policyholders, with the policyholder treated as the Supplier in the transaction.

Readiness for e-Invoicing: Why Partner with an Accredited e-Invoicing Software Provider?

Partnering with an IRBM-accredited e-invoicing software provider guarantees that your system meets all mandatory fields and validation rules, integrates seamlessly with your existing ERP via API or SDK, and automates real-time submissions to minimise manual effort. You’ll benefit from built-in reporting and dashboard features to ensure audit readiness, as well as support for consolidated invoicing and grace-period requirements. Plus, you’ll have access to expert guidance, training and live chat through MyInvois whenever you need assistance.

eezi is accredited as a e-invoicing software service provider in Malaysia. 

Need Help with the e-Invoicing Process?

Are you currently undertaking commercial activities in Malaysia or thinking of opening a business in Malaysia? Worried about e-invoicing compliance in Malaysia? 

The Malaysian Government has published a general FAQ document to answer questions that taxpayers may have around the e-invoicing implementation. eezi-Powered by VAT IT is here to help guide you along this journey and will be ready to assist you with Malaysian e-invoicing when the mandate affects your business.

Reach out to us today and let us help you remain compliant ahead of time.