Fix missed or wrong e-invoices, penalty-free (LHDN VDP)
Audience: Shop owner (Admin) Time: 5 minutes
Behind on e-invoicing, or submitted some wrong? LHDN's e-Invoice Voluntary Disclosure Programme (VDP) lets mandated businesses correct missed, incorrect, or unsubmitted e-invoices with zero penalty until 31 December 2027. This guide explains who it is for and how to catch up using envoice.
This is an educational reference, not tax advice. The programme was announced on 7 July 2026 and LHDN is still releasing full operational details on the IRBM e-invoice website. Confirm your situation with LHDN or a licensed tax agent.
Who it is for
You qualify if, after your mandatory implementation date, you:
- did not issue e-invoices for some transactions,
- submitted e-invoices with errors or non-compliant information, or
- did not issue e-invoices at all for a period.
If you are still exempt (under RM1 million turnover) or fully compliant, you do not need the VDP.
What you get
- No penalty on the missed or wrong e-invoices you voluntarily correct, as long as you do it before LHDN triggers a compliance review or audit.
- Covers everything back to your mandatory implementation date, up to 31 December 2027.
- Separately, a full one-year capital allowance for ICT equipment and software costs spent on e-invoicing implementation.
It has two parts
The VDP is an LHDN policy, not a button inside any software. Using it means doing two things:
1. Declare to LHDN (paperwork, on LHDN's side)
Make the voluntary disclosure before LHDN reviews you. Submit in writing to the relevant LHDN director, including:
- your income tax return (Borang Nyata Cukai Pendapatan, BNCP),
- audited accounts, and
- records of the unreported or incorrect e-invoices.
Doing this before an audit is what secures the penalty waiver. Because the exact format is still being finalised by LHDN, do this step with a licensed tax agent or per the latest IRBM e-invoice guidance.
2. Catch up in envoice (the actual submissions)
This is where envoice does the work, bringing your missed invoices into MyInvois and fixing the wrong ones.
Missed or never-submitted e-invoices (backlog):
- Submit them now. Because they are late, each carries a current issue date (LHDN rejects any e-invoice whose issue date is more than 72 hours before submission).
- For high volume, use CSV upload (webapp) or the bulk submit in the Zoho widget.
- For B2C walk-in sales, submit each affected month as a consolidated e-invoice under the General Public TIN.
Screenshots to capture: webapp CSV upload screen, the consolidated submission form.
Wrong or rejected e-invoices (fix them):
- If still within 72 hours of validation, cancel and reissue the corrected e-invoice.
- If already final, issue a credit note, debit note, or refund note to adjust it.
- Both are available in the webapp (adjustment-note flow) and the Zoho widget (credit / debit / refund buttons).
Screenshots to capture: the adjustment-note form, and the Zoho widget credit/debit note buttons.
Important notes
- envoice is the submission engine, not the VDP itself. envoice gets your missed e-invoices submitted and errors corrected. The VDP declaration is LHDN paperwork, usually done with a tax agent.
- Do it before an audit. The waiver applies to voluntary disclosures. Once LHDN starts a review, you lose the benefit.
- The window closes 31 December 2027. After that, normal penalties (and full Phase 4 enforcement from 1 January 2028) apply.