The IRBM/LHDN raised the mandatory e-invoicing threshold from RM 500,000 to RM 1,000,000 in December 2025. What changed, who is exempt, and what it means for your business.
Published 28 February 2026 · AutoFact AI
Quick Answer
In December 2025, the Inland Revenue Board of Malaysia (IRBM/LHDN) raised the mandatory e-invoicing threshold from RM 500,000 to RM 1,000,000 annual turnover. Taxpayers earning below RM 1 million are now fully exempt from the MyInvois e-invoicing mandate.
Malaysia's mandatory e-invoicing framework is administered by the Inland Revenue Board of Malaysia (IRBM), also known as LHDN (Lembaga Hasil Dalam Negeri). The MyInvois platform is the national clearance system through which compliant e-invoices must pass.
Malaysia's e-invoicing rollout has been phased, with compliance thresholds determining which businesses are subject to the mandate in each phase. The December 2025 guideline update represents a significant policy change for smaller Malaysian businesses.
The IRBM/LHDN updated its e-invoicing guidelines in December 2025 to formally raise the minimum annual turnover threshold that triggers mandatory e-invoicing compliance.
Following the December 2025 update, any taxpayer with annual turnover below RM 1,000,000 is fully exempt from the mandatory e-invoicing requirements. They are not required to issue invoices through the MyInvois system.
Exempt (Below RM 1M)
Mandatory (RM 1M and above)
MyInvois is Malaysia's national e-invoicing platform operated by the IRBM/LHDN. Businesses subject to the mandate must submit structured XML invoices through MyInvois — either via the IRBM's web portal or via the MyInvois API — for validation and clearance.
The MyInvois system validates invoice format and content, assigns a unique Unique Identifier Number (UIN) to each cleared invoice, and makes it available to the buyer. Only invoices cleared through MyInvois are considered legally valid under Malaysia's e-invoicing framework for businesses above the threshold.
Businesses previously preparing for compliance at RM 500K may stand down
If your annual turnover is between RM 500,000 and RM 1,000,000, the December 2025 update removes your mandatory obligation. However, voluntary adoption of MyInvois is still possible and may be strategically advantageous.
Businesses at or above RM 1M remain in scope
If your annual turnover meets or exceeds RM 1,000,000, the mandatory e-invoicing requirement still applies under the phased rollout timeline. Compliance with MyInvois XML submission requirements remains essential.
Monitor turnover thresholds annually
If your business is growing toward the RM 1M threshold, it is prudent to prepare your e-invoicing infrastructure in advance so that mandatory compliance can be activated without disruption when the threshold is crossed.
The IRBM/LHDN guidelines reference annual turnover as the basis for the threshold. Confirm the exact definition applicable to your business type with a qualified Malaysian tax advisor, as turnover definitions may vary across business structures.
Yes. Exempt businesses may voluntarily enrol in MyInvois. Voluntary adoption can improve invoice record-keeping and prepare the business for eventual mandatory compliance as turnover grows.
The exemption from the mandatory e-invoicing obligation applies to businesses below the RM 1M threshold. However, businesses in this category should still consult IRBM/LHDN guidance for any sector-specific requirements that may apply.
Yes. AutoFact AI generates MyInvois-compliant XML invoices and supports API-based submission for Malaysian businesses with annual turnover at or above the RM 1M threshold.
If your business exceeds the RM 1M threshold, AutoFact AI automates MyInvois XML generation and submission — so you meet the mandate without building a custom integration.
Regulatory Disclaimer: This article is for informational purposes only and does not constitute legal or tax advice. Regulatory details are based on published IRBM/LHDN guidelines and may be subject to further revision. Consult qualified Malaysian tax counsel for compliance advice specific to your business.
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