Malaysia E-Invoice: New RM3 Million Exemption Threshold
Published on: September 1, 2026The Inland Revenue Board of Malaysia (HASiL) has increased the e-Invoice exemption threshold from RM1 million to RM3 million in annual turnover or revenue, effective 1 September 2026.
Who Is Exempt?
Businesses with annual turnover or revenue below RM3 million are generally exempt from mandatory e-Invoice implementation.
However, the exemption does not automatically apply where the business:
Has a non-individual shareholder with annual turnover or revenue of RM3 million or above;
Is a subsidiary of a holding company with annual turnover or revenue of RM3 million or above
Has a related company with annual turnover or revenue of RM3 million or above
Has a joint venture or partnership meeting the RM3 million threshold
These ownership and group-related conditions should be reviewed before determining whether the business qualifies for the exemption.
Already Implemented e-Invoice?
Businesses below RM3 million that have already implemented e-Invoice may continue using e-Invoice voluntarily. The new exemption does not require businesses to discontinue their existing e-Invoice arrangements.
What About Businesses Above RM3 Million?
Businesses with annual turnover or revenue of RM3 million and above remain subject to the applicable e-Invoice requirements.
Key Takeaway
RM3 million is the new exemption threshold — but eligibility depends on more than just your own annual turnover.
Before stopping or changing your current e-Invoice process, businesses should review their turnover, ownership structure and related entities to confirm whether the exemption applies.
For further clarification or assistance, contact AFA Group.
