Implementation phases
| Phase | Annual turnover or revenue | Mandatory from |
|---|---|---|
| 1 | more than RM100 million | 1 August 2024 |
| 2 | RM25 million to RM100 million | 1 January 2025 |
| 3 | RM5 million to RM25 million | 1 July 2025 |
| 4 | up to RM5 million (above the exemption threshold) | 1 January 2026 |
The planned final phase for the smallest businesses was cancelled when the exemption threshold was raised. New businesses with revenue of at least RM3 million follow the dates in the LHDN guideline (1 July 2026 or the start of operations).
RM3 million exemption
General Guideline v4.8 (30 August 2026) raised the exemption from RM1 million to RM3 million annual turnover or revenue (it was RM500,000 in the original plan and RM1 million from December 2025). The exemption does not apply if a non-individual shareholder, holding company, related company or joint venture has revenue of RM3 million or more. Exempt businesses still receive e-invoices from their suppliers.
Relaxation period
Specific Guideline v4.7 (20 April 2026) extended the penalty-free interim period for Phase 4 taxpayers to 31 December 2027; penalties apply from 1 January 2028. During the interim period consolidated e-invoices may be used more widely, but the obligation to issue e-invoices from 1 January 2026 remains.
Validation changes in 2026
- 1 August 2026: TIN and BRN/NRIC matching is mandatory in the Validate Taxpayer's TIN API.
- SVDP document versions 1.2 and 1.3 (unsigned / signed) for the Special Voluntary Disclosure Programme, available until 31 December 2027.
- 23 October 2026: monetary amounts limited to 26 digits and passport numbers to 12 characters; non-compliant documents are rejected.
The validator already applies the version and length rules.
Frequently asked questions
I am below RM3 million. Do I need to do anything?
You are exempt from issuing e-invoices unless a related company, holding company, non-individual shareholder or joint venture has RM3 million or more in revenue. You will still receive e-invoices from suppliers that are in scope.
What is a consolidated e-invoice?
A monthly e-invoice that summarises transactions with buyers who did not ask for an individual e-invoice (typically B2C), using the general TIN EI00000000010 and classification code 004. It must be submitted within 7 days after the end of the month.
Are the phase dates final?
The phase dates are fixed in the LHDN guidelines; the exemption threshold and relaxation period have changed several times. Check the current LHDN e-Invoice guidelines before relying on a date.
Developers: same engine as an API
curl -F file=@invoice.pdf https://einvoicechecker.com/v1/validatecurl -F file=@invoice.xml https://einvoicechecker.com/v1/parsecurl -F file=@invoice.xml "https://einvoicechecker.com/v1/render?lang=en" -o invoice.html