If your annual turnover is under RM3 million, you are very likely exempt from issuing e-Invoices — permanently, not until a later deadline. The threshold rose from RM1 million to RM3 million on 1 September 2026. But turnover alone does not settle it, and the part that catches people out is further down.
Written by PLJONE, which makes PLJ Account, an accounting product. PLJ Account does not submit e-Invoices to MyInvois on your behalf and we do not claim it makes anyone compliant. Lembaga Hasil Dalam Negeri Malaysia (LHDN / HASiL) is the authority on what your business must do. Figures below were confirmed on 27 September 2026 against guideline version 4.8; they have changed twice in the past year, so check the current position before acting on it.
What changed, and why so much writing is now out of date
The permanent exemption threshold has moved twice. It was RM500,000, then RM1 million from January 2026, and it became RM3 million on 1 September 2026, following an announcement on 30 August 2026.
The change is large. The previously planned phase covering RM150,000 to RM500,000 was cancelled, not postponed. And the exemption covers individuals, partnerships, companies and co-operatives — not only companies.
This is why searching the topic is currently confusing: a great deal of otherwise reliable material still describes the RM1 million rule, and some of it carries a 2026 date. If a page quotes a threshold without saying when it checked, treat the number as unverified.
The phases, and why you probably are not in one
The mandate arrived in bands of annual turnover. They are worth knowing mainly so you can rule yourself out:
- Phase 1 — More than RM100 million, from 1 August 2024.
- Phase 2 — RM25 million to RM100 million, from 1 January 2025.
- Phase 3 — RM5 million to RM25 million, from 1 July 2025.
- Phase 4 — RM1 million to RM5 million, from 1 January 2026. A relaxation period applies to this phase. Its current end date is the kind of detail that moves, so confirm it with LHDN rather than relying on any summary.
Every band starts at RM1 million or above. If you are below RM3 million there is no later phase waiting for you, because the phase that would have covered smaller businesses was cancelled rather than deferred.
The part that catches people out
Turnover is necessary but not sufficient. Annual turnover below the threshold does not automatically mean exempt. LHDN also considers shareholding structure, holding-company relationships, and related-company or joint-venture arrangements.
In practice that means a small company inside a group, or one with a holding company, or one operating through a joint venture, can be under the threshold on its own figures and still be in scope. If any of that describes your business, the threshold does not answer your question and a summary page cannot either — that is a question for LHDN or your tax agent, with your actual structure in front of them.
If you are in scope
LHDN provides the MyInvois portal and a mobile app at no charge. No business is required to buy software in order to comply.
That sentence is missing from most vendor pages and it is the one that matters most to a small business: the obligation is to issue valid e-Invoices, not to purchase a system. Accounting, billing or ERP systems can integrate with MyInvois through an API to issue and receive e-Invoices directly. That is a convenience decision about how much typing you want to do, not a compliance requirement.
What to ask a software vendor
Including us. Three questions separate a real integration from a marketing claim:
- Do you submit to MyInvois, or do you produce a file I submit? These are very different amounts of work left with you.
- What happens when a submission is rejected? Rejections are normal. A system that cannot show you which invoice failed and why has moved the problem rather than solved it.
- Is this included, or priced separately? Ask before buying, not after.
Our own answer to the first question is that PLJ Account does not submit for you. It keeps the records — the original document stays attached to the entry it produced, which is what you need if anyone ever asks you to substantiate a figure. Whether that is enough depends on whether you are in scope at all, which is the question this page is actually about.
The short version
- Under RM3 million turnover, and no group or joint-venture complication: very likely exempt, permanently.
- Under the threshold but part of a group, or with a holding company or joint venture: check properly. The number does not answer it.
- Over the threshold: you are in a phase, the free MyInvois portal is sufficient to comply, and software is a convenience.
- Any page quoting a threshold without a date, including this one in six months: verify against Lembaga Hasil Dalam Negeri Malaysia (LHDN / HASiL).