The e-Invoice Guideline (Version 4.8), issued by the Inland Revenue Board of Malaysia (LHDN) on 30 August 2026, raises the small business exemption threshold from RM1 million to RM3 million in annual income or sales. This replaces the earlier Version 4.7, which was issued on 7 July 2026.

Under the new rule, a business with annual income or sales below RM3 million does not need to issue e-Invoice. The same higher threshold also applies to new businesses. A business that started operating between 2023 and 2025 will only need to begin issuing e-Invoice on 1 July 2026 if its annual income or sales reaches RM3 million, instead of the earlier RM1 million mark.

The guideline also adds two new clarifications. Statutory bodies, local authorities and international organisations are confirmed to require e-Invoice from 1 July 2025 for the sale of goods and services. Separately, LHDN has clarified that the RM3 million exemption does not apply to a business if it has a non-individual shareholder, or belongs to a group of companies, whose income or sales reaches RM3 million. This is meant to prevent large businesses from using smaller related entities to avoid e-Invoice.

Business owners should check which category their company falls under, since the exemption depends on the full group structure, not just the standalone entity's own numbers.

For the full details of the guideline, readers may refer to LHDN's official e-Invoice page at https://www.hasil.gov.my/e-invois.

If you wish to focus on running and growing your business, our CFO advisory team can take care of your accounting, payroll, tax planning, e-stamping, corporate secretarial and compliance matters for you. Feel free to WhatsApp us at 010-246 2151.