Do you need to issue e-Invoices? Check first, then set up MyInvois properly
The RM3 million exemption threshold took effect on 1 September 2026. Must your company issue e-Invoices, can it stop, or should it continue voluntarily? The bookkeeping team works it out from your turnover and the LHDN conditions.
From 1 September 2026, Malaysian businesses with annual turnover below RM3 million that meet the LHDN (Inland Revenue Board, LHDN/IRBM) conditions can stop issuing e-Invoices, or continue voluntarily. Businesses with turnover of RM3 million to RM5 million fall under phase 4, with a grace period until 31 December 2027. BookKeeper helps you confirm which group your company is in, set up MyInvois and connect your accounting software. Setup starts from RM500 (one-time).
- The exemption threshold rises from RM1 million to RM3 million, effective 1 September 2026.
- Phase 4 (RM5 million and below) started on 1 January 2026, with a grace period until 31 December 2027.
- After the grace period, non-compliance carries a fine of RM200 to RM20,000 per offence, or imprisonment of up to 6 months, or both.
- If your turnover rises above the threshold again, you may need to start issuing again, subject to the latest LHDN guidelines.
- MyInvois setup starts from RM500, a one-time fee.
The September guideline made one beauty salon owner do the sums again
Say you run two beauty salons in Melaka with annual turnover of about RM2.7 million. Last year you assumed your turn would come in January 2026, so you switched to a POS that connects to MyInvois and taught your front desk how to issue consolidated e-Invoices.
On 30 August 2026, LHDN released e-Invoice Guideline version 4.8, raising the exemption threshold from RM1 million to RM3 million, effective 1 September. Your company may suddenly fall within the exemption.
So should you switch the system off? And what if you open a third outlet next year and turnover goes past RM3 million? This page helps you sort out these questions. For the background first, read the RM3 million e-Invoice exemption explained.
Malaysia e-Invoice implementation timeline
e-Invoice: an electronic invoice issued in the format set by LHDN and validated through the MyInvois system. It is being rolled out in four phases based on annual turnover.
| Phase | Annual turnover | Start date |
|---|---|---|
| Phase 1 | Above RM100 million | 1 August 2024 |
| Phase 2 | RM25 million to RM100 million | 1 January 2025 |
| Phase 3 | RM5 million to RM25 million | 1 July 2025 |
| Phase 4 | RM5 million and below | 1 January 2026, grace period until 31 December 2027 |
Does my turnover mean I must issue e-Invoices?
If your annual turnover is below RM3 million and you meet the LHDN conditions, you can stop. If it is RM3 million to RM5 million, you are in phase 4 and must issue, with a grace period until the end of 2027. The table below gives a first assessment.
| Annual turnover | Position | What we suggest |
|---|---|---|
| Below RM3 million | Exempt if you meet the LHDN conditions | You can stop, or continue voluntarily if your customers ask for it |
| RM3 million to RM5 million | Phase 4, grace period until 31 December 2027 | Must issue; use the grace period to get the process running smoothly |
| Above RM5 million | Phases 1 to 3, already started | Focus on monthly checks; the grace period does not apply |
What is the RM3 million exemption?
The exemption threshold was originally RM1 million. On 30 August 2026, LHDN released e-Invoice Guideline version 4.8, raising it to RM3 million from 1 September 2026.
How turnover is calculated, which year it is based on and what other conditions apply all follow the latest LHDN announcements. If your turnover later rises above the threshold, you may need to start issuing e-Invoices again, also subject to the latest LHDN guidelines. Ask an accountant to confirm your position using your company's own figures.
What is the difference during and after the grace period?
The phase 4 grace period runs until 31 December 2027. During this time you can use consolidated e-Invoices, product descriptions can be less detailed, and you will not be penalised under Section 120. Consolidated e-Invoice: combining multiple sales to individual consumers over a period into one e-Invoice for submission.
Once the grace period ends, non-compliance falls under Section 120(1)(d) of the Income Tax Act 1967: a fine of RM200 to RM20,000 per offence, or imprisonment of up to 6 months, or both. Treat the grace period as practice time. The earlier your process runs smoothly, the better.
Sources: LHDN e-Invoice, LHDN
What does the e-Invoice setup service include?
Applicability check
Based on your recent turnover and type of business, we assess whether your company must issue, is exempt, or should continue issuing voluntarily.
MyInvois account setup
Help with registering on the MyInvois Portal and setting up company details, authorised users and intermediary access.
Software connection
We check whether your accounting or POS system, such as SQL Account, AutoCount, Bukku or Xero, can submit e-Invoices directly, and set up your invoicing workflow.
Customer data clean-up
We organise the TIN, SSM (Companies Commission of Malaysia) number and address of your regular customers, so fewer invoices are rejected by the system.
Consolidated e-Invoice arrangement
For businesses selling to individual consumers, such as retail, food and beverage, and beauty, we set up how you issue monthly consolidated e-Invoices.
Monthly checks
Sales and purchase records in MyInvois are matched against your accounts every month. This can be added to your monthly bookkeeping quotation.
How does the setup process work?
Share your turnover details
Financial statements or total sales for the last one to two years, plus a short description of your business.
Confirm your position
Checked against the latest LHDN guideline, we tell you whether you must issue, can stop, or should continue, and explain why.
Set up the system and workflow
If you need to issue, we complete MyInvois registration and the software connection. If you choose to stop, we still arrange how purchase-side e-Invoices are received and checked.
Support in the early weeks
In the early period after going live, we handle invoices rejected by the system and fix common errors. The support scope follows the quotation.
Later reviews
When LHDN updates its guideline or your turnover nears the threshold, a review can be arranged, within the quoted scope.
Say you supply building materials in Kuantan, with annual turnover of about RM4.2 million, and most of your customers are contractors. You are above the RM3 million exemption threshold and fall under phase 4, so you must issue e-Invoices, with a grace period until 31 December 2027.
In this case, rather than rushing at the end of 2027, set up MyInvois and your software now, and use the grace period to get comfortable with issuing, handling rejections and making corrections.
How much does e-Invoice setup cost?
e-Invoice / MyInvois setup starts from RM500, a one-time fee, with the work done according to the quoted scope. Monthly e-Invoice checks after that can be quoted together with monthly bookkeeping.
The above is a starting price; the final price follows the quotation. Prices exclude service tax. If the service provider is SST-registered, 8% is added. Any work outside the quoted scope is explained to you before it starts. See the pricing page for details.
Who is this service for?
- Your annual turnover is around RM3 million and you are not sure whether you need to issue
- You have started issuing e-Invoices, but they are often rejected or you are unsure how to consolidate
- Your customers are asking for e-Invoices, but your system is not set up yet
- You have changed accounting software or POS and need to reconnect
If your company's turnover is well above RM5 million, you are already in phases 1 to 3, and your in-house IT has finished the system integration, this setup service will not add much for you. Go straight to monthly checks instead. Your e-Invoice data is also used for tax filing support.
Tell us last year's turnover, and we will first help you see whether you should issue, can stop, or are better off continuing.
WhatsApp Us About e-InvoiceQuestions you may still have
Tap a question to see the answer. Can't find yours? Just ask us.
Ask on WhatsAppIf my annual turnover is below RM3 million, do I still need to issue e-Invoices?
From 1 September 2026, the exemption threshold rises from RM1 million to RM3 million. Businesses with annual turnover below RM3 million that meet the LHDN conditions can stop issuing e-Invoices, or continue voluntarily. Whether you qualify depends on the LHDN e-Invoice Guideline version 4.8 and the latest announcements.
When does phase 4 start? Is there a grace period?
Phase 4 covers businesses with annual turnover of RM5 million and below that are not exempt. It started on 1 January 2026, with a grace period until 31 December 2027. This grace period applies only to phase 4. Businesses with turnover above RM5 million started earlier, in phases 1 to 3.
What happens if I don't issue e-Invoices after the grace period?
After the grace period, non-compliance falls under Section 120(1)(d) of the Income Tax Act 1967: a fine of RM200 to RM20,000 per offence, or imprisonment of up to 6 months, or both.
How much does e-Invoice setup cost?
MyInvois setup starts from RM500, a one-time fee. The scope follows the quotation, and the price excludes service tax. Any work outside the quoted scope is explained to you before it starts.
I have stopped issuing e-Invoices. Do I still need to deal with MyInvois?
We recommend you do. e-Invoices your suppliers issue to you still appear in the system, and your bookkeeper uses them to check purchases. If your turnover rises above the threshold again, you may need to start issuing again, subject to the latest LHDN guidelines.
