Update on Malaysian MyInvoice e-Invoicing System for Businesses with Sales between RM1M and RM5M
As of April 21, 2026, Malaysia has announced a second 12-month delay of the fourth phase in the rollout of its mandatory e-invoicing for taxpayers with annual sales between RM1 million and RM5 million.
This decision comes in light of the ongoing Iranian conflict and its economic repercussions. Taxpayers in this income bracket will now be required to comply with the MyInvoice e-invoicing system by January 1, 2028. This update follows the Cabinet's previous decision on December 6, 2025, to abandon plans for a fifth wave of implementation aimed at micro-businesses, highlighting the government’s focus on manageable transitions for businesses while considering global economic factors.
MyInvoice and Its Features
MyInvoice serves as the central electronic invoicing solution developed by the Lembaga Hasil Dalam Negeri Malaysia (LHDN) or the Inland Revenue Board of Malaysia. This portal facilitates businesses in submitting their issued invoices and other related documents to the tax authority, where they receive notifications regarding the status of their submissions.
One of the core features of MyInvoice is its Continuous Transaction Control (CTC) model, which mandates that all sales invoices, formatted in XML, be sent to the tax authorities for verification through the government’s portal or API before reaching the customers. Upon approval, each invoice is assigned a unique digital Certification Serial Number, allowing businesses to send the verified invoices to their customers in any format. Additionally, the system includes a PEPPOL option, further streamlining the exchange of invoices internationally.
A notable requirement in this system is the inclusion of a QR code in every invoice sent to customers. This code enhances traceability and facilitates easy verification by both businesses and tax authorities.
Structure of the e-Invoicing System
B2B Transactions
Businesses engaging in B2B activities must ensure compliance with the e-invoicing mandate, where all transactions must utilize the MyInvoice platform. The structured reporting allows for efficient document processing, thereby benefiting both the businesses and the tax authority by reducing errors and increasing transparency.
B2C Transactions
In B2C transactions, the current framework permits suppliers to issue standard receipts or invoices to end consumers, as e-invoices are not mandatory for tax purposes just yet. However, suppliers will be required to consolidate these transactions over a defined period into a single e-invoice later on. This transitional measure will allow suppliers to adapt to the e-invoicing system gradually, while still meeting compliance requirements.
Frequently Asked Questions (FAQs)
Following the announcement regarding the extended transition period, the LHDN issued updated FAQs to address the changes and guide businesses through the compliance process. These FAQs are crucial for understanding the requirements and best practices associated with the MyInvoice system, facilitating smoother integration into business operations.
The Road Ahead
As Malaysia prepares for the full implementation of the MyInvoice e-invoicing system, businesses within the sales range of RM1 million to RM5 million will benefit from the extended timeline to adapt their processes. The government is prioritizing the need for a smoother transition, ensuring businesses have the necessary time and resources to implement these systems efficiently.
In conclusion, the MyInvoice e-invoicing initiative represents a significant step towards modernizing Malaysia's tax system, fostering compliance and transparency in business transactions. As the country moves closer to the January 1, 2028, deadline for these businesses, ongoing guidance and support from the LHDN will be crucial in facilitating a successful rollout of the e-invoicing system.
