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Following the Finance Minister II, Datuk Seri Amir Hamzah Azizan’s announcement on 20 February 2025 in Dewan Rakyat, the Malaysian Government has agreed to postpone the e-Invoicing mandatory implementation timeline for Small and Medium Enterprises (“SMEs”) with annual sales turnover of between RM150,000 to RM500,000 to 1 January 2026 (from 1 July 2025).
More details are expected to be announced by the Inland Revenue Board of Malaysia (“IRBM”) in near future.
To recap, the mandatory e-Invoice implementation timeline will commence in phases (see below): -
Targeted Taxpayers | Implementation Dates | Interim Relaxation Period (or Grace Period) (^) |
Taxpayers with an annual turnover or revenue of more than RM100 million | 1 August 2024 | 1 August 2024 to |
Taxpayers with an annual turnover or revenue of more than RM25 million and up to RM100 million | 1 January 2025 | 1 January 2025 to |
All other taxpayers (including new businesses commencing operations from year 2023 onwards) | 1 July 2025 | 1 July 2025 to |
SMEs with annual sales turnover of between RM150,000 to RM500,000 More details are expected to be announced by the IRBM in near future. | 1 January 2026 | 1 January 2026 to |
(^) With conditions. Non-compliance penalty [i.e. on conviction, be subject to a fine of not less than RM200 and not more than RM20,000 or to imprisonment for a term not exceeding six (6) months or both, for EACH non-compliance] will still be applicable if taxpayers do not comply with the IRBM’s requirements during the Grace Period.
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