Malaysia Raised the e-Invoice Threshold to RM3 Million. What Changes for Your Business?

That is good news for a lot of small firms. It also creates a new set of questions. Should you switch off what you already set up? What happens when you grow past RM3 million? And what if your bigger customers still want validated e-Invoices from you? This guide walks through each one. It is general guidance, not tax advice, so confirm your own position with HASiL or your tax adviser.

The timeline as it stands now

HASiL updated its implementation timeline page on 30 August 2026. The phases are:

So the last phase now effectively covers businesses from RM3 million up to RM5 million. Everyone at RM3 million and above stays in.

The system is already busy. HASiL reports that 265,379 taxpayers have submitted more than 1.84 billion e-Invoices since the rollout began on 1 August 2024.

Who should read this closely

Three groups are affected most:

• Businesses between RM1 million and RM3 million. You were due to start in 2026 and many of you already did. You are now exempt, which means you have a choice to make.
• Businesses just under RM3 million and growing. You are exempt today, but one good year could bring you back in.
• Businesses at RM3 million and above. Nothing changes for you. If you are not compliant yet, the threshold change does not buy you time.

If you already set up MyInvois

Do not rush to turn it off. The exemption means you are not required to issue e-Invoices. It does not stop you from doing so, and HASiL's statement says the Government strongly encourages SMEs to join voluntarily.

Before you decide, ask three questions:

1. Do your customers need it? Larger B2B buyers in the mandatory phases are used to receiving validated e-Invoices. If a key customer has built its accounts payable process around that, stopping could slow down how fast you get paid.
2. What does it cost you to keep it? If e-Invoicing runs through your accounting software or the MyInvois Portal with little manual work, the cost of keeping it may be small.
3. How close are you to RM3 million? If you expect to cross the line in the next year or two, keeping the setup running saves you from doing the project twice.

If the answer to all three is no, pausing may be reasonable. Check the current HASiL guidance on what that means for your records before you change anything.

If you are near the line

Treat RM3 million as a number you watch, not one you find out about later. A few habits help:

• Track turnover monthly against the threshold, not only at year end.
• Ask your accounting or billing software vendor now whether it supports e-Invoice submission, so you know your path if you cross.
• Keep the data e-Invoices need in good shape even while you are exempt. That way switching on is a settings job, not a clean-up project.

How and when a business that crosses RM3 million has to start depends on HASiL's rules for that situation. Check the HASiL e-Invoice FAQ and guidelines when it applies to you rather than relying on general advice.

The data to keep clean either way

Whether you are mandatory, voluntary or exempt, the same records decide how painful e-Invoicing is:

• Customer master. Correct legal names, registration numbers and tax identification numbers, with duplicates merged.
• Item and service list. Consistent descriptions and classifications instead of free text typed on each invoice.
• Tax treatment. Each item mapped to the right tax code.
• Credit and debit notes. Linked to the original invoice, not issued as loose adjustments.
• Every place an invoice is created. POS, ecommerce store, booking system, spreadsheets. Each one needs a path into MyInvois if you are in scope.

Businesses that run invoices out of several systems usually find the last point is the real work.

Common mistakes

• Switching off without asking customers. Find out first who relies on your e-Invoices.
• Assuming exempt means forever. Growth past RM3 million brings you back in.
• Ignoring side systems. The main accounting package is ready, but the POS or web store is not.
• Waiting for a deadline to clean data. Clean data helps your reporting and reconciliation today.

Where Ascent24 can help

Ascent24 is not a HASiL-appointed provider and does not issue e-Invoices on your behalf. We help with the integration work around e-Invoicing: mapping where your invoices are created, cleaning customer and item data, and connecting custom or legacy billing, POS, ecommerce or ERP systems to MyInvois through its API. If you want a second opinion on whether to keep, pause or extend your setup, contact us at info@ascent24.io. If you also trade in Singapore or the Gulf, see our guides on InvoiceNow for GST-registered businesses in Singapore and Saudi e-invoicing Wave 25.

FAQs

What is the new e-Invoice threshold in Malaysia?

From 1 September 2026, businesses with annual turnover or revenue below RM3 million are exempt from e-Invoice. The previous threshold was RM1 million.

I started e-Invoicing in 2026 and my turnover is under RM3 million. Do I have to continue?

You are no longer required to, but you can continue voluntarily, and HASiL encourages SMEs to do so. Check whether your customers rely on your e-Invoices before you stop.

Does the change affect businesses above RM3 million?

No. Businesses with turnover or revenue of RM3 million and above still follow the phased timeline, with the last phase starting 1 January 2026.

How many businesses are exempt now?

HASiL says more than 1.1 million businesses benefit from the exemption.

Where can I get help from HASiL?

HASiL lists its e-Invoice helpdesk on 03-8682 8000, MyInvois Live Chat, the email myinvois@hasil.gov.my and HASiL offices.

Sources

• HASiL, e-Invoice Implementation Timeline (updated 30 Aug 2026): https://www.hasil.gov.my/en/e-invois/pelaksanaan-e-invois-di-malaysia/garis-masa-pelaksanaan-e-invois/
• HASiL media statement HASiL/2026/08/30-44, Ambang Pengecualian Pelaksanaan e-Invois Dinaikkan (30 Aug 2026, Malay): https://www.hasil.gov.my/wp-content/uploads/20260830-Kenyataan-Media-HASiL_AMBANG-PENGECUALIAN-E_INVOIS-DINAIKKAN.pdf