RM3 million exemption threshold
Published by LHDN: 30 August 2026, in the e-Invoice Guideline Version 4.8 and the updated implementation timeline.
What changed
Taxpayers with annual turnover or revenue below RM3 million are now exempt from issuing e-invoices. The exemption applies to every type of taxpayer: individuals, partnerships, companies and co-operatives. The phase for turnover up to RM5 million (mandatory from 1 January 2026) now effectively covers RM3 million to RM5 million.
The exemption does not apply if your business has a non-individual shareholder, a holding company, or a related company or joint venture with turnover or revenue of at least RM3 million.
Who it affects
- Businesses below RM3 million that were preparing to comply are now exempt, unless one of the exceptions above applies.
- Businesses at RM3 million to RM5 million still have to comply, with the interim relaxation period until 31 December 2027.
What to do
- Check your 2022 turnover or revenue against the new threshold. See Am I exempt from e-invoicing?.
- If you are now exempt, you can stop filing, or keep filing voluntarily if your customers want e-invoices. Nothing in envoice changes either way.
- If you are still mandated, carry on as before.