GEORGE TOWN, Sept 23 — Over 102,800 taxpayers have already adopted Malaysia’s new e-invoicing system, issuing a total of 563 million e-invoices since the third phase began on July 1, Finance Minister II Datuk Seri Amir Hamzah Azizan said today.
Speaking at the launch of the Mega E-invoice Roadshow 2025 here, he described this as an encouraging sign of public reception to the policy.
“This is a positive response from taxpayers who have implemented the e-invoice system voluntarily before the mandatory period,” he said.
The roll out of the e-invoice system started in August last year and is now in the third phase of implementation.
New implementation phases and extended timelines
Amir Hamzah said today that the government has extended the mandatory implementation timeline with the introduction of two new phases to allow small, medium, and micro-enterprises more time to prepare.
The upcoming phases are:
- Phase Four: For businesses with annual revenue between RM1 million and RM5 million, starting January 1, 2026. This phase is expected to involve more than 130,000 taxpayers.
- Phase Five: For businesses with annual revenue up to RM1 million, starting July 1, 2026.
To further ease the transition, the government has also raised the exemption threshold for mandatory e-invoicing for businesses with annual sales from below RM150,000 to below RM500,000.
“This exemption benefits a large number of micro and small traders, who will not be burdened with the financial costs or technical skills required for the implementation of e-invoicing,” he said.
Additionally, a six-month grace period will be provided after each mandatory implementation date.
During this period, businesses can issue consolidated e-invoices for all their transactions.
“No penalties or fines will be imposed during this grace period as long as taxpayers issue at least consolidated e-invoices for compliance purposes,” Amir Hamzah explained, calling it a flexible measure to help businesses adapt.
He urged all taxpayers not to wait until the last minute to adopt the system.
“It is better to prepare early,” he said, adding that those needing assistance can approach any Inland Revenue Board (LHDN) office.
