e-Invoicing in Malaysia: the complete guide
Updated 15 August 2026
Short answer
e-Invoicing in Malaysia runs on LHDN's MyInvois system: businesses submit each invoice to LHDN in near real time for validation. It is mandatory in phases by annual turnover. Businesses above RM5 million already comply, RM1 million to RM5 million from 1 January 2026, and businesses under RM1 million are exempt.
What is e-invoicing (MyInvois)?
An e-invoice is a structured digital document sent to LHDN through the MyInvois system, which validates it and returns a unique identifier and a QR code. It replaces paper and PDF invoices as the tax-recognised record for a transaction. Unlike a normal invoice, it is checked by LHDN at the moment it is issued.
Who has to comply, and when?
LHDN rolls the mandate out in phases by annual turnover:
| Phase | Annual turnover | Mandatory from |
|---|---|---|
| 1 | Above RM100 million | 1 August 2024 |
| 2 | RM25m to RM100m | 1 January 2025 |
| 3 | RM5m to RM25m | 1 July 2025 |
| 4 | RM1m to RM5m | 1 January 2026 |
| Exempt | Below RM1 million | Voluntary |
Businesses under RM1 million turnover are currently exempt. See the full deadline breakdown and what exemption means.
How an e-invoice works, step by step
- You create the invoice with the required fields (your TIN, the buyer, line items, tax).
- It is submitted to LHDN MyInvois, in real time or as a batch.
- LHDN validates it and returns a unique identifier plus a QR code.
- A validated PDF with the QR is shared with the buyer.
- Either party can cancel within 72 hours; after that it is final.
The main document types
- Invoice: the standard e-invoice for a sale.
- Credit note: reduces a validated invoice (returns, corrections down).
- Debit note: increases a validated invoice (additional charges).
- Refund note: records a refund to the buyer.
- Self-billed e-invoice: issued by the buyer when the supplier cannot, common for foreign suppliers. See self-billed e-invoices.
B2C sales: consolidated e-invoices
Retail buyers rarely need an individual e-invoice, so those sales can be grouped into one consolidated e-invoice filed monthly. From 1 January 2026, a single sale above RM10,000 must be issued individually and cannot be consolidated.
What you need to get started
- A Tax Identification Number (TIN) and MyTax / MyInvois access.
- A Client ID and Client Secret from the MyInvois portal (for software submission).
- A tool that builds and submits the e-invoice for you, or the manual MyInvois portal.
What happens if you do not comply
Failing to issue an e-invoice is an offence under the Income Tax Act 1967, with fines per offence. See e-invoice penalties for the details and the current enforcement position.
Frequently asked questions
What is MyInvois?
MyInvois is LHDN's e-invoicing system. Businesses submit invoices to it for validation; it returns a unique identifier and a QR code that make the invoice a tax-recognised record.
Is e-invoicing mandatory for my business?
It depends on turnover. Above RM5 million is already mandatory, RM1 million to RM5 million from 1 January 2026, and below RM1 million is currently exempt.
Do I need to replace my POS or accounting system?
No. A MyInvois connector works alongside your existing system and files e-invoices to LHDN in the background.
How does an e-invoice get validated?
You submit it to LHDN MyInvois, which validates the fields and returns a unique identifier and a QR code, usually within seconds.
Can I test before submitting real e-invoices?
Yes. Sandbox mode lets you run the full flow against a mock before connecting your LHDN production credentials.