Group 4 e-Invoicing Starts Soon in Malaysia

Update as of 5 January 2026:

LHDN has announced that the interim relaxation (grace) period for Group 4 taxpayers will be extended until 31 December 2026. During this extended relaxation period, enforcement actions will not be imposed, provided that businesses are taking steps to prepare for compliance.

This extension is intended to give affected businesses additional time to stabilise their systems, refine internal workflows, and complete necessary adjustments before full enforcement begins.



Businesses are encouraged to use this extended relaxation period to ensure their invoicing processes and systems are fully aligned with e-Invoice requirements ahead of the enforcement phase.

In less than a month, Phase 4 e‑invoice will officially begin for Group 4 businesses in Malaysia. Starting 1 January 2026, companies with annual revenue between RM1 million and RM5 million must issue e‑invoices in line with the Inland Revenue Board of Malaysia’s (LHDN) requirements.

Momentum is already building. According to recent reports, the IRB’s e‑invoice system has reached more than 108,000 users and 735 million e-invoices issued. This shows that businesses across Malaysia are actively preparing, and Group 4 companies now have the opportunity to join this growing wave of digital compliance.

What is an e‑invoice

An e‑invoice is a structured digital invoice that records transaction details such as buyer and seller information, item descriptions, prices, taxes, and totals. Unlike a PDF or paper invoice, it is created in a standardized format that can be validated automatically by the tax authority. This ensures authenticity, reduces errors, and provides a clear audit trail for businesses.

Why e‑invoicing matters

• Compliance made simple: Meet government requirements and avoid penalties.
• Better accuracy: Reduce mistakes and disputes with customers.
• Faster reconciliation: Real‑time validation helps streamline record‑keeping and reduces delays in matching transactions.
• Paperless and eco‑friendly: Eliminate printing, storage, and physical handling — reducing waste and supporting sustainability goals.

How to prepare

1. Check your annual revenue

If your business earns between RM1 million and RM5 million, you are part of Group 4 and must begin e‑invoicing on 1 January 2026.

2. Choose your submission method

Businesses have several ways to issue e‑invoices to LHDN:

• MyInvois Portal

The government provides an online portal where invoices can be entered manually or uploaded in batches. It is straightforward and suitable for businesses with very low transaction volumes, but it requires staff to handle submissions directly.

• Goldsoft JERP with E‑Invoice Ready Feature

If you are already using or planning to adopt Goldsoft JERP, e‑invoices are created and transmitted to LHDN in real time. There is no need for uploads or manual processing — the system handles everything natively. This is the most seamless option for businesses that want invoicing fully integrated into their daily operations.

• Goldsoft Middleware Solution

For companies that generate a steady flow of invoices, our middleware platform offers a faster, more cost‑effective path. Acting as a trusted third‑party channel, it automatically converts your invoices into the required format and submits them to LHDN. This reduces manual work, minimizes errors, and keeps your compliance process running smoothly.

3. Take advantage of the grace period

Group 4 businesses have a six‑month grace period starting 1 January 2026. During this time, you can issue a single consolidated e‑invoice per month instead of submitting each transaction individually. This gives you time to adjust your systems and processes before full enforcement begins in July 2026.

4. Start early with a provider

Partnering with Goldsoft now ensures you are ready before the deadline, with testing and onboarding handled for you.

Related article:

Why Choose Goldsoft

LHDN‑approved middleware connection

Our solution connects directly with Malaysia’s official MyInvois platform, ensuring smooth submission and compliance with LHDN regulations.

Proven experience and reliability

With 28 years of experience in business systems, Goldsoft delivers trusted e-invoice solutions that support companies across all industries. Our middleware offers flexible integration and reliable compliance features that adapt to different operational needs.

Post‑sales support and training

We provide ongoing support, including user training, so your team quickly adapts and gains confidence in using the e‑invoice system.

Customizable system, built in‑house

Developed entirely by Goldsoft, our solution is highly customizable. Businesses can tailor reporting formats, dashboard views, and system integration to fit their operations smoothly.

Conclusion

Group 4 e‑invoicing is just around the corner. With the right partner, compliance can be straightforward and even beneficial for your business operations. Goldsoft provides the tools, expertise, and support to make the transition smooth and reliable. The time to act is now — let us help you prepare for Malaysia’s digital tax future.

Sources:

https://thesun.my/news/malaysia-news/malaysias-e-invoice-system-sees-735-million-issued-by-108000-taxpayers

For more information about Goldsoft e-invoice Ready ERP/ e-invoice middleware, please do not hesitate to contact Goldsoft's sales team at 03-2732 8833 or fill up the form below for enquiry.