Regulatory updates - Malaysia

On August 30, 2026, the Inland Revenue Board of Malaysia (IRBM) published e-invoice Guideline version 4.8, increasing the annual turnover or revenue threshold for exemption from e-invoice requirements from MYR 1 million (ca. EUR 215,000) to MYR 3 million (ca. EUR 640,000) and providing additional clarification on the scope of the exemption.

Exemption criteria

The exemption for taxpayers with annual turnover or revenue below MYR 3 million applies to all categories of taxpayers, including individuals, partnerships, companies and co-operatives.

However, IRBM clarified that eligibility is not determined solely by the taxpayer's own turnover or revenue. The exemption does not apply where:

• the taxpayer has one or more non-individual shareholders (or equivalent) with annual turnover or revenue of at least MYR 3 million;
• the taxpayer is a subsidiary of a holding company with annual turnover or revenue of at least MYR 3 million; or
• the taxpayer has a related company or joint venture with annual turnover or revenue of at least MYR 3 million. For this purpose, a related company is one that controls or is controlled by another company, is under common control with another company, or where one company holds 20% or more of the shares in the other company.

Newly established businesses

For businesses or operations commencing between 2023 and 2025 with annual turnover or revenue of at least MYR 3 million, the e-invoice implementation date remains July 1, 2026.

For businesses or operations commencing from 2026 onwards, the e-invoice implementation date is July 1, 2026, or the date operations commence, as applicable. However, where first-year turnover or revenue is expected to be below MYR 3 million, the implementation date is deferred until January 1 of the second year following the year in which annual turnover or revenue reaches MYR 3 million.

Other taxpayers

The guideline also reiterates that statutory bodies, statutory authorities, local authorities and international organisations are required to implement e-invoicing from July 1, 2025, in relation to transactions involving goods sold or services performed.

The updated guidance may require businesses with annual turnover or revenue between MYR 1 million and MYR 3 million to reassess their obligations, particularly where they have already commenced e-invoice issuance under the previous threshold. Ownership structures and relationships with holding companies, related companies and joint ventures should also be reviewed when determining eligibility for the exemption.

On July 7, 2026, the Inland Revenue Board of Malaysia (IRBM) published the e-Invoice Guideline Version 4.7. and the e-Invoice Specific Guideline Version 4.8. The updates introduce the e‑Invoice Special Voluntary Disclosure Programme (SVDP), a compliance initiative designed to help taxpayers regularise e‑Invoice obligations and correct historical omissions or inaccuracies.

e‑Invoice Special Voluntary Disclosure Programme (SVDP)

The SVDP is effective from July 7, 2026, to December 31, 2027, and applies to taxpayers that:

• Failed to submit e‑invoices from their mandatory implementation date.
• Submitted e‑invoices containing errors or information that does not comply with e‑invoice requirements.
• Omitted e‑invoices for certain transactions or periods.
• Are currently undergoing, or have been notified of, an IRBM e‑invoice compliance review.

IRBM has stated that voluntary disclosures made under the programme will be accepted provided taxpayers act in good faith and comply with the prescribed requirements. Taxpayers remain responsible for ensuring that all disclosures are complete and accurate.

As a rule, IRBM will not undertake e‑invoice compliance reviews, enforcement actions, penalties, or prosecution in relation to e‑invoices disclosed under the SVDP. However, this relief does not apply where submitted documents fail to comply with applicable requirements or where the disclosure involves fraud, wilful default, or negligence.

New SVDP document versions

To support the programme, IRBM has introduced two dedicated document versions within the MyInvois SDK: SVDP 1.2 (without digital signature) and SVDP 1.3 (with digital signature)

These document versions may only be used for submissions made under the SVDP and cannot be used for normal e‑invoice reporting outside the programme.

Additional SVDP requirements

Where a voluntary disclosure involves previously unreported consolidated e‑invoices, the documents must be submitted according to the relevant month of the transaction rather than as a single consolidated submission covering multiple months.

Guideline clarifications

In the updated e‑invoice Guideline, Business Registration Number (BRN) has been added to the list of abbreviations. The guideline clarifies that a BRN is the official registration number issued by the relevant government authority or registration body under which a taxpayer is registered, established, or incorporated.

On April 20, 2026, IRBM published e-Invoice Specific Guideline version 4.7, replacing version 4.6. The principal change extends the interim relaxation period for Phase 4 businesses (annual turnover between RM 1 million and RM 5 million) by 12 months to December 31, 2027.  

A key point to consider is that Version 4.7 reaffirms that the extension of the relaxation period does not alter the legal start date for e-invoicing extension; solely delays the start of penalty enforcement for certain compliance obligations. 

In other words, the mandatory start date of January 1, 2026 remains unchanged; full enforcement begins January 1, 2028. This follows the Cabinet's December 2025 decision raising the exemption threshold from RM 500,000 to RM 1 million and cancelling Phase 5. 

On April 22, 2026 and May 5, 2026 IRBM published updated General FAQs, reiterating the one-year extension of the interim relaxation period, and adding onboarding timeline examples for businesses that recently crossed the RM 1 million threshold.  

Please note that these are clarifications, not new policy. The FAQ in Malaysia serves as a supporting instrument designed to facilitate understanding of the guidelines, by offering practical use cases and examples to help interpret and apply the requirements more effectively.