The e-Invoice exemption threshold has increased from RM1 million to RM3 million. This follows an announcement by the Prime Minister. LHDN has released a new FAQ to explain how this affects businesses, including those that already started issuing e-Invoices. Below is a simple summary of the main points.

When Must I Start Using e-Invoice?

Your start date depends on when your business began and whether you qualify for the exemption. (Full criteria are in Section 1.6.10 of the e-Invoice Guideline.)

If your business existed before 2022, and your 2022 revenue was under RM3 million: You are exempt if you meet the criteria. You only need to start once your revenue reaches RM3 million. If this happens between 2023 and 2025, you start on 1 July 2026. If it happens from 2026 onwards, you start on 1 January of the second year after that. If you do not meet the exemption criteria, you must start on 1 July 2026 regardless.

If your business started between 2023 and 2025: If your revenue reached RM3 million in any of those years, you must start on 1 July 2026. If your revenue stayed under RM3 million and you meet the exemption criteria, you are exempt until your revenue reaches RM3 million from 2026 onwards. If your revenue stayed low but you do not meet the exemption criteria, you must still start on 1 July 2026.

If your business started from 2026 onwards: If you meet the exemption criteria, you are exempt until your revenue reaches RM3 million. You then start on 1 January of the second year after that. If you do not meet the criteria, you must start on 1 July 2026 or your business start date, whichever is later.

I Missed My Original Start Date. Will I Be Penalised?

No. If your revenue is under RM3 million and you meet the exemption criteria, you are treated as exempt from your original start date. This applies even if you have not issued any e-Invoices yet. No penalty or compliance action will apply.

I Am Already Issuing e-Invoices. Can I Stop?

Yes. You do not need to apply or wait for approval from LHDN. If you meet the exemption criteria, you may stop issuing e-Invoices at any time. You may also choose to continue voluntarily.

I Found Some Missing e-Invoices from Before. Do I Need to Join the SVDP?

No. If you now qualify for the exemption, you do not need to join the e-Invoice Special Voluntary Disclosure Programme (SVDP) for those missing invoices. You may simply stop issuing e-Invoices going forward.

Is This Exemption Permanent?

No. If your revenue later reaches RM3 million again, you will need to start using e-Invoice once more. Your new start date will be 1 January of the second year after that happens. In the meantime, businesses are still encouraged to use e-Invoice voluntarily to support the government's digitalisation efforts.