• info@kaizencpa.com
  • Our Office: USA - Hong Kong - Shenzhen - Shanghai - Beijing - Taiwan - Singapore - Japan - UK

+852 2341 1444(Hong Kong)
+86 755 8268 4483(Shenzhen)
+65 6438 0116(Singapore)

Search for anything.

Knowledge

  • Home
  • Knowledge
  • Malaysia e-Invoice

Malaysia e-Invoice

2025-07-25
  1. What is an e-Invoice?

    An e-Invoice is basically a digital version of a regular invoice. it is created in a way that follows the specific rules set by the Inland Revenue Board of Malaysia (“IRBM”) so everything is standardized and easier to handle electronically.

  2. When is the latest implementation date of E-Invoice in Malaysia?

    The latest -Invoice implementation will be as follows:

    Targeted Taxpayers

    Implementation Date

    Businesses with annual revenue of more than RM100 million

    1 August 2024

    Businesses with annual revenue of more than RM25 million but not more than RM100 million

    1 January 2025

    Businesses with annual revenue of more than RM5 million but not more than RM25 million

    1 July 2025

    Businesses with annual revenue of more than RM1 million but not more than RM5 million

    1 January 2026

    Businesses with annual revenue of up to RM1 million

    1 July 2026


  3. Are MSMEs in Malaysia required to issue e-Invoice?

    Everyone who runs a business in Malaysia are required to implement e-Invoice, based on the timeline outlined in Question 2.

    However, the government of Malaysia has given an exemption for businesses with annual revenue of less than RM500,000.

    For example
    Mr. A runs a small business called A Enterprise. By the end of 2024, Mr. A’s annual revenue from the business was less than RM500,000. Since his business is still below the threshold, Mr. A is not required to issue e-Invoices.

  4. Does the exemption apply to all MSMEs?

    The exemption from implementing e-Invoice with annual revenue of RM500,000 applies to all types of taxpayers, including individuals, partnerships, companies etc.

    However, there are exceptions, whereby the exemption does not apply to the following taxpayers:

    a. The taxpayer has non-individual shareholder(s) with an annual revenue of RM500,000 or more; or
    b. The taxpayer is a subsidiary of a holding company with an annual revenue of RM500,000 or more; or
    c. The taxpayer has a related company or joint venture with an annual revenue of RM500,000 or more.

    For example
    B Sdn. Bhd. is a subsidiary of C Sdn. Bhd., a larger company who has already implemented e-Invoice in Malaysia. In 2022, B Sdn. Bhd. has an annual revenue of RM450,000. Even though B Sdn. Bhd. annual revenue is below the RM500,000 threshold, B Sdn. Bhd. is not exempted from implementing e-Invoice in Malaysia (as B Sdn. Bhd. is a subsidiary of a company that is required to implement e-Invoice). As such, B Sdn. Bhd. is required to implement e-Invoice on 1 July 2026.

  5. If my business is in operation as at year of assessment (YA) 2022 and my annual revenue did not reach RM500,000 in YA2022, how should I determine my e-Invoice implementation date?

    For businesses that qualify for the e-Invoice exemption, they are not required to implement e-Invoice as long as the annual revenue remains below the threshold of RM500,000. However, if the annual revenue subsequently reached or exceeded the threshold of RM500,000 after operation, they are required to implement e-Invoice starting from 1 July 2026.

    For business that do not qualify for the e-Invoice exemption, the e-Invoice implementation date will be on 1 July 2026.

    For business that commenced operation after YA2022 (e.g. YA2023, YA2024 & YA2025) and is not eligible for exemption, they are required to implement e-Invoice on 1 July 2026, once the business has reached or exceeded the threshold of RM500,000 in YA2023, YA2024 or YA2025

    For business that commenced operation after YA2026 or subsequent YA and is not eligible for exemption, they are required to implement e-Invoice from 1 January in the second year, once the business has reached or exceeded the threshold of RM500,000 in YA2026 or subsequent YA.

KAIZEN Group, together with its associate firms in Malaysia, can help the clients to perform these compliances formalities so as to maintain the Malaysia company in good standing. Please call and talk to our professional accountants in Kaizen for further clarification.

Disclaimer

All information in this article is only for the purpose of information sharing, instead of professional suggestion. Kaizen will not assume any responsibility for loss or damage.

WhatsApp/Line/Wechat: +852 5616 4140

Related Posts

Guideline to Select a Malaysia Company Name

Selecting the right company name is a crucial step when incorporating a company in Malaysia. The name should comply with the Companies Act 2016 (“CA 2016”) and the guidelines set by the Companies Commission of Malaysia (“CCM”) to ensure that company names are unique, appropriate, and legally compliant.

SIRIM Product Certification in Malaysia

SIRIM certification is the official recognition that a product, system, or service meets established Malaysian or international standards for safety, quality, and performance. It serves to protect consumers, support regulatory compliance, and enhance market acceptance, particularly for regulated products in Malaysia.

Q&A on DE Rantau Nomad Pass in Malaysia

What is DE Rantau Nomad Pass? The DE Rantau Nomad Pass is a Professional Visit Pass that enables eligible foreign digital nomads to live and work in Malaysia. What is the duration of the DE Rantau Nomad Pass?What are the benefits of being a DE Rantau Nomad Pass holder?

Q&A on Malaysia Investor Pass

What is the Investor Pass? The Investor Pass is a multiple-entry visa designed for business visitors and foreign investors to support their business endeavours, especially for those who have committed to investing in Malaysia through relevant investment agencies or authorities.Can individuals apply for an Investor Pass while they are in Malaysia? Those who wish to apply for the Investor Pass must be outside of Malaysia at the time of submitting their application.