Phase 3 E-Invoicing Starts July 2025: What Malaysia’s SMEs Need to Know

Malaysia’s digital tax infrastructure is evolving quickly. Beginning July 1, 2025, the e-invoicing mandate will apply to thousands more businesses nationwide. Phase 3 of the Inland Revenue Board of Malaysia (IRBM)’s e-Invoicing Initiative targets small and medium enterprises (SMEs), marking a pivotal shift in how everyday businesses handle invoicing, taxation, and recordkeeping.

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If your annual turnover falls between RM5 million and RM25 million, this phase is for you—and it’s time to get ready. In this guide, we’ll cover what Phase 3 means for your business, how to prepare, and how Goldsoft’s e-invoice solution can help you transition smoothly.

Who Must Comply in Phase 3?

Starting 1 July 2025, e-invoicing will become mandatory for:

• Taxpayers with annual revenue between RM5 million and RM25 million, based on financial data from 2022.
• New businesses registered in 2023 or 2024 that have exceeded RM500,000 in turnover.

Unlike previous phases that targeted large or medium enterprises, Phase 3 includes a broader range of SMEs—many of which are moving to digital invoicing for the first time.

Once assigned a start date, your obligation remains even if your turnover changes in later years.

How Your Business Should Prepare

This phase is new to many smaller companies. You don’t need advanced systems, but you do need a clear plan.

1. Check if Your Business Is Included
Check if your business meets the revenue threshold and confirm your mandatory start date.

2. Choose the Right e-Invoice Mechanism
There are different methods businesses can use to submit e-invoices. Each method offers different features, and choosing the right one depends on your current setup.

• Middleware Solution 

This is the simplest and most cost-effective method for most businesses. Goldsoft Middleware serves as a government-approved third-party platform that converts documents to standard specifications and submits them to LHDN.

Ideal for companies that generate moderate to large transaction volumes and need to streamline their submission process.

• E-Invoice Ready ERP Solution

If you’re using Goldsoft JERP, e-invoices are generated automatically and sent to LHDN in real-time —no uploads or manual processing required.

Ideal for companies already using or planning to adopt Goldsoft JERP system that supports e-invoicing natively

• MyInvois Portal

This is LHDN’s official online platform for manual entry and batch uploads. It is most suitable for businesses with very low invoice volumes or those without any accounting software.

While accessible, this method may not be practical for businesses that process many invoices daily, as it requires more manual work.

3. Train Your Team

Make sure your team understands the basics of the e-invoicing process. This includes knowing how to handle buyer requests, check validation statuses, and manage submission errors.

Alternatively, you can also use the MyInvois Sandbox—a test environment provided by LHDN that lets you simulate e-invoicing processes.

4. Start E-Invoicing

Start your e-invoicing initiative by 1 July 2025. It is important to note that LHDN has provided a grace period for Phase 3 businesses from 1 July to 31 December 2025.

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How Goldsoft Makes Compliance Simple

Whether you’re using a basic accounting tool or running an ERP system, Goldsoft provides scalable e-invoicing solutions tailored for different kinds of businesses:

✅ Support for API Integration
Businesses looking for automation can integrate directly with our e-invoice middleware through API, reducing manual work and speeding up submission.

✅ Custom Features Available
Our solution supports additional customization features like automated emails, custom print outputs, and more—built to match your business workflows.

✅ Support Most Business Scenarios
Handles all major e-invoices types, including B2B, B2C, self-billed, credit notes, debit notes, refunds, and consolidated invoices.

✅ Real-Time Dashboard
Monitor your invoice submissions, validation statuses, and errors in one place through a simple and intuitive dashboard.

✅ Affordable & Fast Deployment
Designed for fast deployment and cost-effectiveness, suitable for all kinds of business.

Final Thoughts

Phase 3 marks a major milestone for small and medium-sized businesses in Malaysia. With the right tools and a proactive approach, e-invoicing doesn’t have to be overwhelming—it can be a gateway to modern, efficient business operations.

If your business is part of this next wave, the time to act is now.

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.