THE government has introduced two additional phases for the nationwide implementation of e-Invoice to provide small and medium-sized enterprises (SMEs) with more preparation time, said Deputy Finance Minister II Datuk Seri Amir Hamzah Azizan.
He said businesses with annual sales exceeding RM1 million up to RM5 million will fall under Phase Four starting Jan 1, 2026, while those with annual sales of up to RM1 million will join Phase Five from July 1, 2026.
“The extension is to allow SMEs to better prepare for full e-Invoice adoption. We understand their concerns about technology adoption and readiness, and the government is committed to ensuring a smooth transition,” he said when officiating the Jelajah Mega e-Invois Siri 2/2025 – Peringkat Nasional at Wisma Hasil here today.
Amir Hamzah added that the exemption threshold has been raised from annual sales of RM150,000 to RM500,000, benefitting many micro and small businesses who would otherwise face additional costs and technical requirements.
Despite the exemption, he encouraged micro and small traders to voluntarily embrace e-Invoice to align with Malaysia’s digitalisation aspirations.
To further ease the transition, businesses will also enjoy a six-month grace period after the mandatory date, during which they may issue consolidated e-Invoices for all transactions without penalty.
“This flexibility is given to ensure businesses have time to adjust their systems and processes. No fines will be imposed if they issue at least a consolidated e-Invoice during this period,” he explained.
Since its introduction in August 2024, e-Invoice has now entered its third phase, covering businesses with annual sales between RM5 million and RM25 million.
Amir Hamzah revealed that to date, over 102,800 taxpayers have issued more than 563 million e-Invoices, with many adopting the system ahead of the mandatory timeline.
“E-Invoice improves operational efficiency, enhances the integrity of business records, and strengthens tax compliance. At the same time, it helps businesses qualify for financing and government support schemes,” he said.
He urged taxpayers to avoid waiting until the last minute.
“Early preparation is always better. If there are challenges, LHDN (HASiL) is ready to engage with businesses to address any issues. The government also welcomes constructive feedback from industry players, trade associations, and professionals for the benefit of all Malaysians,” he added.
Also present at the event was Deputy Finance Minister II Lim Hui Ying. Amir Hamzah later flagged off the Jelajah Mega e-Invois Siri 2/2025 roadshow.
Story by Kevin Vimal
Pix by Darwina Mohd Daud