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Malaysia: E-invoicing threshold increased to RM3 million effective September 1, 2026

The government has raised the mandatory e-invoicing threshold from RM1 million to RM3 million in annual revenue or sales.

september 3, 2026

The Malaysian tax authority (Lembaga Hasil Dalam Negeri Malaysia, HASiL) on August 30, 2026, announced (Malay) an increase in the threshold for mandatory e-invoicing from RM1 million to RM3 million, effective September 1, 2026.

Background

Malaysia introduced its e-invoicing mandate on August 1, 2024. Since implementation, over 265,000 taxpayers have submitted e-invoices, totaling more than 1.84 billion documents. The mandate aims to digitize business operations and ensure proper record-keeping for all relevant transactions. Micro, small, and medium enterprises (MSMEs) have actively participated in the rollout.

Overview of amendments

The government has raised the mandatory e-invoicing threshold from RM1 million to RM3 million in annual revenue or sales. MSMEs with annual revenue or sales below RM3 million are now exempt from mandatory e-invoicing. This amendment benefits more than 1.1 million businesses, reducing compliance burdens and costs for smaller taxpayers.

Next steps

This change impacts not only entities with annual sales revenue below the threshold indicated above, but also purchasers of goods and services from local suppliers, as suppliers that fall below the threshold may be permitted to issue invoices in a non-electronic format.


For more information, contact a KPMG professional:

WeiWei NG | wwng@kpmg.com.my
Philippe Stephanny | philippestephanny@kpmg.com
Ramon Frias | ramonfrias@kpmg.com
MaeYee Lee | maeyeelee@kpmg.com.my

E-invoicing developments timeline

Learn more about tax administration developments in e-invoicing, digital reporting, and real-time reporting

Updated August 2026

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