MyInvois e-invoicing in Malaysia: how to prepare

What is MyInvois?

An e-invoice under MyInvois is a structured digital record of a transaction between a supplier and a buyer. Instead of issuing a PDF or paper invoice directly, the supplier submits the invoice to the MyInvois system, LHDN validates it and assigns it a unique identifier, and that validated document is what both parties keep for tax purposes. Businesses can submit through the MyInvois portal or, at higher volumes, through an API integration.

Who must issue e-invoices, and from when?

The mandate rolled out in phases by annual turnover, measured from the 2022 financial year statements. Separately from those phases, LHDN sets a floor below which a taxpayer does not have to issue e-invoices at all. That floor has been raised repeatedly, most recently to RM3 million with effect from 1 September 2026, a government decision announced on 30 August 2026 and written into e-Invoice Guideline Version 4.8.

The exemption for taxpayers under RM3 million has a carve-out. Under Section 1.6.10 of the Guideline it does not apply if you have a non-individual shareholder with annual turnover of at least RM3 million, if you are a subsidiary of a holding company with turnover of at least RM3 million, or if you have a related company or joint venture with turnover of at least RM3 million. A "related company" here takes its meaning from section 2 of the Promotion of Investments Act 1986.

New businesses have their own dates. A business that started between 2023 and 2025 with annual turnover of at least RM3 million had to implement by 1 July 2026. A business starting from 2026 onwards implements on 1 July 2026 or when it starts operating, whichever is later; if its first year is expected to be under RM3 million, the date becomes 1 January of the second year after the year its turnover reached RM3 million.

What is the relaxation period?

Each phase starts with an interim relaxation period. The first three phases had six months each. For businesses with turnover up to RM5 million, LHDN extended the relaxation period to 31 December 2027. During relaxation you may issue a monthly consolidated e-invoice for all activities, use any description text, and LHDN does not prosecute for non-issuance as long as the consolidated requirements are met.

What is a consolidated e-invoice?

For buyers who do not ask for an individual e-invoice, you can issue one consolidated e-invoice covering the month, submitted to LHDN within seven calendar days after the month ends. Once your relaxation period is over, some transactions always need an individual e-invoice: sales of motor vehicles, flight tickets, construction contracts, payments to agents and dealers, betting and gaming payouts, and, from 1 January 2026, any single transaction above RM10,000, electricity supply, and telco postpaid, internet, and device sales. The full list is in LHDN’s e-Invoice Specific Guideline.

What happens if you do not comply?

Failure to issue an e-invoice when required is an offence under section 120(1)(d) of the Income Tax Act 1967: a fine of RM200 to RM20,000, imprisonment of up to 6 months, or both, for each non-compliance. During your relaxation period LHDN does not prosecute, provided the consolidated e-invoice requirements are met.

What is a self-billed e-invoice?

In some transactions the buyer issues the e-invoice instead of the supplier. The main cases are imports of goods and services, payments to agents, dealers, and distributors, dividend distributions, e-commerce transactions, purchases from individuals who are not in business, certain interest payments, and insurance payouts. If these apply to you, your bookkeeping needs to capture the supplier details an e-invoice requires.

How should you prepare?

• Confirm which implementation date applies to you from the table above, including the related-company carve-out if you are under RM3 million.
• Make sure your customer and supplier records hold the details an e-invoice needs, such as registration and tax identification numbers.
• Keep your sales and purchase records clean and complete, since each one becomes an e-invoice.
• Decide whether you will submit through the MyInvois portal or through software that connects to it.
• If you rely on consolidated e-invoices, set a monthly routine: they are due within seven days of month end.

Where does Lejar fit?

Lejar submits MyInvois e-invoices to LHDN directly, free on every plan including Free. To turn it on, appoint Iterate Ventures Sdn. Bhd. (the entity operating Lejar) as your MyInvois intermediary from the MyInvois portal, a one-time step with instructions in Settings, e-Invoice, then verify the appointment there and submit. Lejar also handles consolidated e-invoices for B2C sales and credit, debit, and refund notes for corrections, with submission status resolved automatically each day.