Quick answer
Under Section 82C of the Income Tax Act 1967, businesses within scope must issue e-invoices in the manner set by LHDN's e-Invoice Guidelines. From 1 January 2026 the exemption threshold rose to RM1 million annual turnover; businesses between RM1 million and RM5 million are in the final mandatory phase, with the relaxation period ending on 31 December 2026. Transactions above RM10,000 must now have individual e-invoices. Non-compliance can be fined RM200 to RM20,000 per invoice.
Last reviewed： · Reviewed by：ONEKEY BIZ compliance team
01
Overview
E-invoicing replaces the paper or PDF invoice as the record LHDN relies on. Each e-invoice is validated by LHDN through the MyInvois system before it is shared with the buyer, which gives LHDN near real-time visibility of business transactions.
The legal basis is Section 82C of the Income Tax Act 1967, read with LHDN's e-Invoice Guidelines under Section 134A. On 1 January 2026 the exemption threshold was raised from RM500,000 to RM1 million, which removed a planned fifth phase: businesses with turnover between RM1 million and RM5 million are the last mandatory group, with a relaxation period to 31 December 2026. Consolidated e-invoices are no longer allowed for transactions above RM10,000.
The practical work is on the business side: registering in MyInvois, setting up the taxpayer profile and authorised users, choosing between the portal and an API connection from your accounting system, and making sure buyer TINs, classification codes and tax details are correct so invoices are not rejected.
Who needs this
- Companies with turnover between RM1 million and RM5 million
- Businesses switching invoicing to an accounting or ERP system
- Companies whose e-invoices are being rejected by MyInvois
02
Documents you need to prepare
Company
- Company TIN and SSM registration
- SST registration number, if registered
- MSIC code and business activity
Users & systems
- Authorised users for MyInvois
- Accounting or ERP system in use
Invoice data
- Customer TIN and registration details
- Product or service classification codes
- Buyer TIN, classification code and tax type errors are the most common rejection causes.
- Businesses below RM1 million turnover are exempt, but may still receive e-invoices from suppliers.
03
How to get it done with ONEKEY BIZ
- 1Scope check Day 1
Turnover, phase and invoicing flows confirmed.
- 2MyInvois registration Day 1–3
Taxpayer profile and users set up.
- 3Channel setup Week 1
Portal or API connection configured.
- 4Test invoices Week 1–2
Sample e-invoices issued and validated.
- 5Go-live Done
Workflow handed over with a rejection checklist.
You do
- Provide company and customer data
- Nominate authorised users
We do
- Confirm your phase and obligations
- Register and configure MyInvois
- Set up portal or system integration
- Test and validate e-invoices
04
What you receive
Company registered with authorised users.
Portal or system connection ready to issue validated e-invoices.
The data points that most often cause rejections.
Official sources
Frequently asked questions
Are we exempt?
Businesses with annual turnover below RM1 million are exempt from 1 January 2026.
Can we still consolidate invoices?
Not for transactions above RM10,000, which need individual e-invoices.
What is the penalty?
RM200 to RM20,000 per non-compliant invoice, or imprisonment up to six months, or both.