LHDN E-Invoice Mandatory July 2026 — Who Must Comply and Who Is Exempt
E-invoicing via LHDN's MyInvois system is mandatory for businesses with annual turnover or revenue of MYR 3 million and above, which were phased in between August 2024 and January 2026 according to their size. Businesses below MYR 3 million are exempt — a threshold raised from MYR 1 million on 30 August 2026, effective 1 September 2026. This guide covers who must comply, who is exempt, what the requirements are, and how to submit.
Threshold raised to MYR 3 million: LHDN's e-Invoice General Guideline version 4.8, dated 30 August 2026 and effective 1 September 2026, exempts businesses with annual turnover or revenue below MYR 3 million — over 1.1 million businesses, across every category of taxpayer. The previous threshold was MYR 1 million. If your turnover is MYR 3 million or more the mandate still applies to you, from whichever phase matched your size, and non-compliance carries penalties under the Income Tax Act 1967. Businesses newly brought into scope — chiefly those caught by the ownership exception below — implement from 1 July 2026.
What is the July 2026 E-Invoice Mandate?
LHDN (Lembaga Hasil Dalam Negeri Malaysia, the Inland Revenue Board) is implementing a phased nationwide e-invoicing mandate. Under this mandate, commercial transactions by businesses within scope must be reported through the MyInvois system — LHDN's centralised e-invoice portal — in real time or near-real time.
The mandate was introduced in stages based on annual turnover:
| Phase | Effective Date | Annual Turnover |
|---|---|---|
| Phase 1 | 1 August 2024 | Above MYR 100 million |
| Phase 2 | 1 January 2025 | MYR 25 million – MYR 100 million |
| Phase 3 | 1 July 2025 | MYR 5 million – MYR 25 million |
| Phase 4 | 1 January 2026 | MYR 1 million – MYR 5 million |
| Exempt | Since 1 September 2026 | Below MYR 3 million |
The phases rolled out from the largest businesses down, and then stopped short: the exemption raised on 1 September 2026 now sits above where Phase 4 began, so freelancers, sole proprietors and micro-enterprises below MYR 3 million in annual turnover are outside the mandate entirely.
That leaves one band genuinely unclear, and we would rather say so than guess: if your turnover is between MYR 1 million and MYR 3 million you were brought in by Phase 4 on 1 January 2026, and the guideline also states that once a business is mandated it stays mandated. Whether the raised threshold releases you is a question for LHDN or your tax agent — do not assume either way on the strength of this page.
Source: LHDN e-Invoice General Guideline v4.8 (30 August 2026), which replaced v4.7 (7 July 2026) and took effect on 1 September 2026.
Who Must Comply?
Every business with annual turnover or revenue of MYR 3 million and above that issues invoices must comply, regardless of sector — from the phase that matched its turnover, as set out in the table above. Any category of taxpayer can be caught. This includes:
One exception matters more than any other. Under section 1.6.10 of the guideline, 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 MYR 3,000,000. A small company owned by a larger group is still mandated, and implements from 1 July 2026. Note too that once a business is mandated it stays mandated — LHDN grants no exemption after implementation, even if revenue later falls below the threshold.
Are freelancers included? Usually not — if your annual turnover or revenue is below MYR 3 million, you are exempt, even when you run a registered business (e.g., Enterprise under SSM) and issue invoices to other businesses or individuals. The government encourages MSMEs to participate voluntarily. Consult LHDN or a tax agent to confirm your specific obligations.
What Is MyInvois?
MyInvois is LHDN's official e-invoice platform. It serves as the central hub through which all e-invoices in Malaysia must pass. When you issue an invoice, you (or your software) submits it to MyInvois, which validates it and returns a unique Unique Identification Number (UIN) and a QR code. The invoice is only considered valid once it has been validated by MyInvois.
Businesses can interact with MyInvois in two ways:
MyInvois Portal (Manual)
Log in to myinvois.hasil.gov.my and submit invoices manually through the web interface. Suitable for very low invoice volumes.
API Integration (Automated)
Connect your invoicing software directly to the MyInvois API. Invoices are submitted automatically in the background — no manual steps required. This is how InvoiceLah works.
What Information Does an E-Invoice Need?
A valid Malaysian e-invoice must contain all standard invoice fields plus the additional fields required by MyInvois. The key mandatory fields are:
Supplier TIN (Tax Identification Number)
Your LHDN-issued TIN, starting with "C" for companies or "IG" for individuals. This is the primary identifier LHDN uses to link the invoice to your tax record.
Supplier SSM / Business Registration Number
Your company or enterprise number issued by the Companies Commission of Malaysia (SSM).
Supplier MSIC Code
Malaysian Standard Industrial Classification (MSIC) code that describes your business activity. Used by LHDN to categorise industry sectors.
Buyer TIN and name
The buyer's Tax Identification Number and legal name. For retail transactions where the buyer's TIN is unknown, a general TIN (EI00000000010) may be used.
Line items with descriptions and amounts
Each product or service must be listed separately with description, quantity, unit price, and total amount.
Tax category and tax amount
For SST-registered businesses, the applicable tax rate (e.g., 8% Service Tax) and tax amount in MYR must be shown. Non-taxable supplies should be marked as "Exempt".
Currency and exchange rate
If the invoice is in a foreign currency, the exchange rate to MYR must be stated.
Invoice date and time
The date and time of issuance in ISO 8601 format (e.g., 2026-07-01T10:30:00).
Source: LHDN MyInvois SDK documentation. Requirements subject to change — refer to myinvois.hasil.gov.my for the latest field specifications.
How to Submit E-Invoices via InvoiceLah
InvoiceLah integrates directly with the MyInvois API. Once you connect your account, e-invoice submission is automatic — you create invoices the same way you always have, and InvoiceLah handles the MyInvois submission in the background.
Connect your MyInvois credentials
In your InvoiceLah profile, enter your LHDN TIN, SSM registration number, and MSIC code. InvoiceLah stores these securely and includes them on every invoice automatically.
Add your client's TIN
When creating or editing a client record, enter their TIN. InvoiceLah saves this per-client so you don't need to re-enter it each time.
Create your invoice as normal
Fill in your line items, amounts, and any SST. InvoiceLah formats the invoice data into the UBL XML format required by MyInvois automatically.
Submit — one click
Click "Submit to MyInvois". InvoiceLah sends the invoice to LHDN, retrieves the Unique Identification Number (UIN) and QR code, and attaches them to your invoice PDF.
Send to your client
Send the validated invoice (with LHDN QR code) to your client via email or WhatsApp directly from InvoiceLah. Your client can scan the QR code to verify the invoice on the MyInvois portal.
Penalties for Non-Compliance
Failure to issue e-invoices as required by LHDN carries penalties under the Income Tax Act 1967. LHDN has the authority to:
Impose fines on businesses that fail to submit invoices through MyInvois
Disallow expense claims by buyers who cannot produce a valid (MyInvois-validated) invoice
Conduct tax audits on businesses with missing or invalid e-invoice records
Issue penalties for late or incorrect submissions
Important: For buyers, this is equally critical — if your supplier does not give you a validated e-invoice, you may not be able to claim that expense as a deduction. Both parties have an incentive to ensure e-invoices are issued correctly.
Frequently Asked Questions
Is e-invoice mandatory for freelancers?
Not if your annual turnover or revenue is below MYR 3 million. Guideline v4.8, dated 30 August 2026, exempts businesses under that threshold across all categories of taxpayer, including registered sole proprietors and Enterprises under SSM. The exception is ownership: if you have a non-individual shareholder, a holding company, or a related company or joint venture with turnover of at least MYR 3,000,000, you are mandated from 1 July 2026 regardless of your own revenue — consult LHDN or a tax agent for your specific situation.
What if my customer does not have a TIN?
For business-to-consumer (B2C) transactions where the buyer does not have a TIN or declines to provide one, LHDN permits the use of a general TIN: EI00000000010. This allows you to submit the e-invoice without the buyer's TIN while remaining compliant.
Can I use InvoiceLah for MyInvois submission?
Yes. InvoiceLah integrates directly with the MyInvois API. Once you configure your LHDN credentials in your InvoiceLah profile, invoice submission to MyInvois is handled automatically. The validated invoice with the LHDN QR code is generated and ready to send to your client.
What is the deadline for e-invoice compliance?
It depends which phase you fell into. Businesses of MYR 3 million turnover and above were phased in between 1 August 2024 and 1 January 2026 by size, so if that is you, your deadline has already passed. 1 July 2026 is the date for businesses newly brought into scope, chiefly those caught by the group-ownership exception. Businesses below MYR 3 million are exempt and have no deadline, though LHDN encourages voluntary participation. LHDN has not announced a grace period — if you are mandated, assume the deadline is firm.
Submit e-invoices to MyInvois automatically
InvoiceLah connects directly to LHDN's MyInvois API. Create your invoice, click submit — we handle the rest. Free forever for Malaysian businesses.
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