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E-Invoice Requirements for E-Commerce Seller in Malaysia (2026)
Malaysia's MyInvois e-invoicing mandate is transforming how e-commerce seller businesses issue and receive invoices. Whether you're already mandated, newly exempt, or preparing for Phase 4 (January 2026), this guide gives you the clear, practical steps to get compliant.
Does this apply to your E-Commerce Seller business?
Businesses with annual turnover or revenue below RM 3 million are exempt from the e-Invoice mandate, under LHDN's e-Invoice General Guideline v4.8 (30 August 2026), effective 1 September 2026. The previous threshold was RM 1,000,000 (guideline v4.7, 7 July 2026). The exemption covers every category of taxpayer — individuals, partnerships, companies and co-operatives — and over 1.1 million businesses qualify. If you are exempt, participation is voluntary and the government encourages it.
Two catches. The exemption does not apply if you have a non-individual shareholder, a holding company, or a related company or joint venture with annual turnover or revenue of at least RM 3,000,000 — those businesses are mandated from 1 July 2026 whatever their own revenue. And once you are mandated, you stay mandated: there is no exemption after implementation, even if your revenue later falls below the threshold.
Why E-Commerce Seller businesses need to act now
E-commerce businesses with high order volumes need an efficient system for consolidated B2C invoicing while issuing compliant individual e-invoices for wholesale buyers and B2B clients.
MSIC Code for E-Commerce Seller
LHDN requires your MSIC (Malaysia Standard Industrial Classification) code on every e-invoice submission. For e-commerce seller: 47910 (Retail sale via internet).
Verify your exact MSIC code at dosm.gov.my or the LHDN MyInvois portal.
MyInvois rollout timeline (all phases)
- August 2024 (Phase 1): Businesses with turnover > RM 100 million
- January 2025 (Phase 2): Businesses with turnover > RM 25 million
- July 2025 (Phase 3): Businesses with turnover > RM 5 million
- January 2026 (Phase 4): Businesses with turnover RM 1,000,000 – RM 5 million — but those below RM 3 million are now exempt under guideline v4.8
- July 2026: Businesses below RM 3 million that have a non-individual shareholder, a holding company, or a related company or joint venture with annual turnover or revenue of at least RM 3,000,000
What a compliant e-invoice must include
Both your TIN and your buyer's TIN. Obtain from MyTax Portal (mytax.hasil.gov.my).
Your SSM registration number. Required for both supplier and corporate buyers.
Your 5-digit industry classification code from DOSM. Used for LHDN industry reporting.
LHDN CLASS code per line item — identifies the type of goods or service on each invoice line.
Standardised LHDN payment method codes (01–08): cash, cheque, bank transfer, etc.
A cryptographic signature from an approved Certificate Authority — required on every submission.
Your E-Commerce Seller e-invoice compliance checklist
- Calculate your total GMV (Gross Merchandise Value) across all platforms to determine threshold compliance
- Register on MyTax Portal for your TIN using your business registration
- Use MSIC code 47910 (Retail sale via internet) for your e-commerce operations
- Set up a process to identify B2B buyers who need individual e-invoices vs B2C buyers covered by consolidated billing
- Use InvoiceLah to manage both individual B2B e-invoices and monthly consolidated B2C e-invoices
Get e-invoice ready — mandated or exempt
InvoiceLah captures all 55 LHDN-required fields on every invoice. Start free — no card needed.
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Frequently asked questions for E-Commerce Seller in Malaysia
Do e-commerce sellers need to comply with Malaysia's MyInvois in 2026?
E-commerce sellers with annual turnover or revenue of RM 3 million or above are mandated — RM 3 million to RM 5 million under Phase 4 from 1 January 2026, and larger sellers under the earlier phases. Below RM 3 million you are exempt under LHDN e-Invoice General Guideline v4.8 (30 August 2026), effective 1 September 2026, unless you have a non-individual shareholder, a holding company, or a related company or joint venture with annual turnover or revenue of at least RM 3,000,000. This covers sellers on Shopee, Lazada, TikTok Shop, and own-website stores; those who are mandated can use consolidated monthly e-invoices for B2C orders.
How do marketplace sellers (Shopee, Lazada) handle e-invoices?
LHDN allows consolidated e-invoices for B2C marketplace transactions. For each month's sales, you can issue a single e-invoice covering all orders where buyers did not request individual invoices. B2B wholesale orders on the same platform still need individual e-invoices per transaction.
Does the RM 3 million threshold include platform fees deducted by Shopee/Lazada?
The threshold is based on your gross revenue (before platform fee deductions). Platform fees are a business expense, not a deduction from your revenue for compliance threshold purposes.
How do I handle returns and refunds under MyInvois for e-commerce?
Returns and refunds are handled via Credit Notes submitted through MyInvois. Each credit note references the original e-invoice number. InvoiceLah manages credit note generation linked to the original invoice for clean audit trails.
Useful LHDN and government resources
- MyTax Portal — Register for TIN and manage your tax account
- MyInvois Portal — LHDN's official e-invoicing portal
- DOSM — Look up your MSIC code
- InvoiceLah MyInvois Guide — Plain-English e-invoicing guide
- e-Invoice Exemption Checker — Free tool to check your compliance phase
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