Latest Updates on Malaysia's e-Invoice Implementation Timeline (June 2025 Update)

Certain e-Invoice Implementation Has Been Delayed Until Next Year for Some Taxpayers, With Additional Clarifications for New Businesses on e-Invoice Implementation.

Update as of 6 June 2025:

The Inland Revenue Board of Malaysia (IRBM) has announced a new revision to the e-Invoice implementation timeline. The updated rollout now segments taxpayers into narrower revenue brackets:

• Taxpayers with annual revenue between RM5 million and RM25 million must start e-Invoicing on 1 July 2025.

• Taxpayers with annual revenue between RM1 million and RM5 million must start e-Invoicing on 1 January 2026.

• Taxpayers with annual revenue up to RM1 million must start e-Invoicing on 1 July 2026.

• New businesses or operations starting from 2023 to 2025 with annual revenue of RM500,000 or more must start e-Invoicing on 1 July 2026.

• Taxpayers with annual income or sales below RM500,000 are temporarily exempt from e-invoicing requirements.

• The six-month relaxation period still applies after each phase’s implementation date.

Businesses are advised to review their implementation plans and ensure readiness based on the revised schedule.

The Inland Revenue Board of Malaysia (IRBM) has announced crucial updates to the e-invoice implementation timeline to ensure a smoother transition for businesses of all sizes. As businesses gear up for digital invoicing, understanding these changes is essential to remain compliant and prepared for the rollout.

Updated e-Invoice Implementation Timeline

The rollout of the mandatory e-invoice system will proceed in phases, taking into account businesses' revenue thresholds. Below is the revised timeline:

Businesses with an annual turnover or revenue < RM500,000 are exempted from implementing e-invoice.

Key Considerations for Businesses

1. Revenue-Based Implementation

• The revenue threshold for determining the implementation date is based on either:
• 2022’s audited financial statements, or
• 2022’s reported revenue in the tax return
• Any subsequent changes in revenue will not affect a company’s assigned e-invoice implementation date.

2. Interim Relaxation Period

• To ease the transition, the government has introduced a six-month relaxation period after the mandatory implementation date for each phase. During this period:
• Businesses can issue consolidated e-invoices for all transactions.
• IRBM will not take prosecution action for non-compliance, provided that businesses follow the interim relaxation guidelines.

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3. Early Adoption Option

• Businesses that wish to implement e-invoices before their mandatory date can opt to do so voluntarily, ensuring smoother integration before the official deadline.

4. New Businesses

• For new businesses or operations commencing from 2023 to 2025 with an annual turnover or revenue of at least RM500,000, the mandatory e-Invoice implementation date is 1 July 2026.

Final Thoughts

The e-invoice system marks a significant step towards Malaysia’s digital tax transformation, enhancing efficiency and transparency. Businesses should start preparing now to leverage the benefits of digital invoicing while ensuring compliance with IRBM regulations.

For more details, refer to the IRBM’s latest e-Invoice guidelines and stay updated with official announcements to avoid disruptions in your invoicing processes.

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.