On 30 August 2026 the government announced that the e-Invoicing threshold would rise from RM1 million to RM3 million in annual income or sales, effective 1 September 2026. LHDN said more than 1.1 million businesses benefit. For many SMEs the short answer is that you no longer have to issue e-Invoices. The longer answer has one catch worth checking.
What changed
Before 1 September 2026, businesses with annual income or sales below RM1 million were exempt from mandatory e-Invoicing. That line is now RM3 million, and businesses below it are not required to implement e-Invoicing.
The catch: related companies
The exemption is not decided by your own turnover alone. It does not apply where you have a non-individual shareholder, a holding company, a related company or a joint venture with annual turnover or revenue of RM3 million or more. Franchise outlets and businesses owned through a group are the ones most likely to be caught, so check your structure as well as your sales figure.
What to do this month
- Find your annual income or sales and compare it with RM3 million.
- List your shareholders, holding company, related companies and joint ventures. If any of them is a company with turnover of RM3 million or more, ask LHDN or your accountant whether you are still in scope.
- Ask your accountant whether they expect you to issue e-Invoices for any other reason.
- Check whether your software can issue e-Invoices, in case you cross the line or a customer asks.
- Keep watching your turnover. A growing business can cross RM3 million with little warning.
Exempt is not the same as ignore
Some customers and larger suppliers ask every supplier for e-Invoices, exempt or not. If yours do, you can use MyInvois anyway. Two of the systems we offer have it built in. SQL Accounting’s SQL eInvoice add-on is LHDN MyInvois compliant, and E Stream also lists Peppol e-Invoicing. GEBME POS supports MyInvois from the till: a QR on the receipt, online requests from customers, and consolidation in the back office.
This is not tax advice
Rules in this area move, and your own position depends on your structure. Confirm it with LHDN or your accountant.