Am I exempt from e-invoicing?
You are exempt if your annual turnover or revenue is below RM3 million. LHDN set this threshold in the e-Invoice Guideline Version 4.8, published 30 August 2026.
The exceptions
You are not exempt, even below RM3 million, if:
- a non-individual shareholder has turnover or revenue of at least RM3 million,
- you are a subsidiary of a holding company with at least RM3 million, or
- a related company or joint venture of yours has at least RM3 million.
Which year counts
LHDN uses your 2022 figures: audited financial statements for financial year 2022, or your tax return for year of assessment 2022. New businesses have their own rules. See Who must issue e-invoices, and when.
If you are exempt
- You do not have to issue e-invoices. Your normal receipts remain valid proof of expense for your buyers.
- You can still issue e-invoices voluntarily, for example because a corporate customer asks for them.