New business in 2026: when do I start e-invoicing?
Written by the Lejar team3 min read
Many owners who started a business in 2026 are not sure when e-Invoice becomes mandatory for them, because the date differs from existing businesses that are already in Phase 4. This guide answers that question directly, based on LHDN's official guideline and FAQ at hasil.gov.my, verified as of 10 October 2026.
When does e-Invoice become mandatory for my new business?
If your business started in 2026 or later, and it does not meet the exemption criteria (see the RM3 million threshold below), you must start e-Invoice from 1 July 2026 or the date your business starts operating, whichever is later.
So if your business registered and started operating after 1 July 2026, your start-of-operations date is your mandatory e-Invoice date, not 1 July 2026.
My first-year turnover will be under RM3 million. Does that change anything?
Yes. If your new business meets the exemption criteria, for example its first-year turnover is expected to be under RM3 million, e-Invoice starts only on 1 January of the second year after the year your actual turnover reaches RM3 million.
"Turnover" here means your total sales or gross revenue for the year, not net profit after costs. It is the same definition used for the RM3 million exemption in general.
This gives a small new business more time to prepare than a business that starts with higher turnover from day one.
Why are existing businesses in Phase 4 since January 2026, but my new business is different?
Phase 4 (now turnover of RM3 million to RM5 million) applies to existing businesses under LHDN's phased rollout, and it has applied to that turnover band since 1 January 2026.
A new business that starts in 2026 or later is not part of that phased schedule. LHDN uses a separate rule for it, based on the date it starts operating and its first-year turnover, as set out above.
How do I make sure I do not miss this date?
The most important thing is to know your real turnover at any time. Then you know if you are still under the RM3 million threshold or have reached it, and in which year that happened.
Books kept up to date from the first day of business make this check much easier than trying to work it out late, when an e-Invoice date is already close.
How can Lejar help your new business?
Lejar helps a new business keep tidy books from the first day of operations. Lejar’s AI drafts the journal entries from your bank statements and documents, and you approve each one before it posts. Your turnover stays clear, so you see the RM3 million line early, long before any e-Invoice date arrives. MyInvois e-invoicing is live in Lejar, free on every plan, including Free.
Frequently asked questions
My business started operating in August 2026. When must I start e-Invoice?
If your business does not meet the exemption criteria, e-Invoice is mandatory from 1 July 2026 or the date it starts operating, whichever is later. In this case your August 2026 start date applies, because it is later than 1 July 2026.
My first-year turnover will be under RM3 million. Must I start e-Invoice at once?
No. If your first-year turnover is under RM3 million, e-Invoice starts only on 1 January of the second year after the year your actual turnover reaches RM3 million.
Why are existing businesses in Phase 4 since January 2026, while my new business follows another rule?
Phase 4 applies to existing businesses under LHDN’s phased rollout. A new business that starts in 2026 or later follows a separate rule, based on its start-of-operations date and its first-year turnover.
Is the RM3 million exemption the same for new and existing businesses?
Yes. Annual turnover under RM3 million is exempt from e-Invoice from 1 September 2026, for new and existing businesses alike. The only difference is when e-Invoice starts after turnover reaches the threshold.
Where do I submit e-invoices when the time comes?
Through the LHDN MyInvois system, either on the MyInvois portal directly or through software that connects to it.