05/09/2026
📢 LATEST E-INVOICE UPDATE – RM3 MILLION EXEMPTION!
LHDN/IRBM Guidelines Updated: 30 August 2026
Latest FAQ Updated: 4 September 2026
Following the latest LHDN/IRBM e-Invoice Guidelines updated on 30 August 2026 and FAQ updated on 4 September 2026, the e-Invoice exemption threshold has been increased from RM1 million to RM3 million.
💡 What does this mean for your business?
Here are 5 KEY POINTS for easy understanding:
✅ 1️⃣ My annual turnover/revenue is below RM3 million. Am I exempted?
YES, subject to the eligibility criteria.
If your company's annual turnover/revenue is below RM3 million, based on the applicable audited financial statements or financial/tax records, you may qualify for the e-Invoice exemption.
⚠️ Important: Being below RM3 million does not automatically mean every company is exempted. Certain companies with corporate shareholders, subsidiaries/holding companies, related companies or joint-venture structures may not qualify.
✅ 2️⃣ I already implemented e-Invoice from 1 January 2026. Can I stop now?
YES.
If your business now qualifies for the RM3 million exemption, you may:
👉 Discontinue issuing e-Invoices immediately.
You may also choose to continue issuing e-Invoices voluntarily.
✅ 3️⃣ Do I need to apply to LHDN/IRBM for approval before stopping?
NO.
If you fulfil the exemption criteria:
❌ No separate application
❌ No prior approval from LHDN/IRBM
👉 You may discontinue issuing e-Invoices immediately.
✅ 4️⃣ I missed some invoices / credit notes from 1 January to 31 August 2026. Do I need to join the e-Invoice SVDP? Will I be penalised?
If your business now qualifies for the exemption:
👉 No need to participate in the e-Invoice SVDP for the previous omissions covered by the latest FAQ.
👉 You may discontinue issuing e-Invoices immediately.
👉 No penalty will be imposed for the relevant e-Invoice non-compliance, subject to the applicable exemption conditions.
✅ 5️⃣ My turnover is currently below RM3 million, but I expect to exceed RM3 million in YA2027. When must I implement e-Invoice?
You remain EXEMPTED until you reach/exceed the RM3 million threshold.
📌 Example:
Annual turnover/revenue reaches or exceeds RM3 million in YA2027
➡️ YA2028 – First year following YA2027
➡️ 1 January 2029 – Mandatory e-Invoice implementation
Therefore, reaching the RM3 million threshold does not necessarily mean you must implement e-Invoice immediately in the same year. Note: Implementation starts on 1 January in the second year following the YA in which annual turnover or revenue reaches/exceeds RM3 million.
📌 QUICK SUMMARY
Below RM3 million & eligible?
➡️ e-Invoice exemption ✅
Already implemented e-Invoice?
➡️ May discontinue immediately ✅
Need to apply to LHDN?
➡️ No separate application ✅
Previous invoices / credit notes omitted?
➡️ No SVDP required for eligible exempt taxpayers under the latest FAQ ✅
Exceed RM3 million in YA2027?
➡️ e-Invoice starts 1 January 2029 ✅
⚠️ IMPORTANT
The RM3 million threshold is not the only eligibility condition. Businesses should review their shareholding, related company and group structure, together with the latest LHDN/IRBM requirements, before determining their exemption status.
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📌 Disclaimer: This summary is prepared for general information based on the LHDN/IRBM e-Invoice Guidelines updated on 30 August 2026 and FAQ updated on 4 September 2026. Eligibility is subject to the detailed conditions prescribed by LHDN/IRBM. Businesses should refer to the latest official guidelines/FAQs or obtain professional advice where necessary.
