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AcuBookse-Invoice

e-Invoice, without the panic.

Where Malaysia's LHDN e-Invoice rollout stands in October 2026, who is exempt, and what an SME must do. Written by our tax team, as announced by LHDN.

Nur Aisyah binti Ahmad, senior tax consultant at AcuBooks, at her desk

The short answer

Under RM 3 million a year? You are exempt from 1 September 2026, as long as no related company is at RM 3 million or more. Between RM 3 million and RM 5 million, you are in Phase 4, with no penalties until 31 Dec 2027.

The rollout, by annual turnover

Five lines, one ledger.

FromAnnual turnoverStatus, October 2026
1 Aug 2024Above RM 100 millionIn force
1 Jan 2025RM 25 million to RM 100 millionIn force
1 Jul 2025RM 5 million to RM 25 millionIn force
1 Jan 2026Up to RM 5 million, now RM 3 million to RM 5 millionRelaxation period to 31 Dec 2027
From 1 Sep 2026Below RM 3 millionExempt, if the conditions are met

Sources: LHDN e-Invoice Guideline v4.8 (30 August 2026) and the April 2026 Phase 4 announcement, as reported by BDO Malaysia and Business Today; LHDN Return Form Filing Programme 2026.

Am I exempt?

Three checks.

  1. 01

    Your annual turnover is below RM 3 million

    This is the exemption threshold from 1 September 2026, raised from RM 1 million in LHDN's e-Invoice Guideline version 4.8.

  2. 02

    No related company is at RM 3 million or more

    The exemption does not apply if a holding company, related company or corporate shareholder has a turnover of RM 3 million or more.

  3. 03

    Sole proprietors: all your businesses together

    If one person owns several enterprises, their turnover is counted together against the RM 3 million line.

If you are in scope

Five things to do.

  1. 01

    Confirm your band

    Check your turnover and your group against the phases and the exemption above.

  2. 02

    Pick how you will submit

    LHDN's free MyInvois Portal suits low volumes. Accounting software or an API suits more.

  3. 03

    Collect buyer details

    Business buyers need their tax identification number and registration details on the e-Invoice.

  4. 04

    Issue, or consolidate monthly

    Where a buyer does not ask for an e-Invoice, receipts can go into one consolidated e-Invoice, submitted within 7 calendar days after month end.

  5. 05

    Keep your records

    Validated e-Invoices become part of your books. Keep them with the rest of your records.

How AcuBooks helps

We check, then we file.

  • The exemption check

    We read your accounts and your shareholding and tell you, in writing, whether you are in or out.

    Ask Nur Aisyah

  • MyInvois set-up

    We set up the portal or connect your software, and load your buyers' details.

    Ask Nur Aisyah

  • Monthly consolidation

    For bookkeeping clients we prepare and submit the consolidated e-Invoice with the month's books.

    Ask Nur Aisyah

Questions SME owners ask

e-Invoice questions.

Is my business exempt from e-Invoice?

As announced by LHDN, businesses with annual turnover below RM 3 million are exempt from 1 September 2026, unless a holding company, related company or corporate shareholder has a turnover of RM 3 million or more.

When do penalties start for Phase 4?

Phase 4 started on 1 January 2026. LHDN extended its relaxation period to 31 December 2027, so penalties apply from 1 January 2028. Consolidated e-Invoices are allowed during the relaxation period.

I already started issuing e-Invoices. Can I stop?

If you now meet the exemption conditions, you may stop without applying to LHDN, or carry on voluntarily. We check the conditions with you first.

Not sure which side you are on?

Send us your latest turnover and who owns your company. The exemption check is part of the free consultation.

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