Malaysia Adjusts E-Invoicing Rollout as SME Readiness Lags
Malaysia has revised the next phase of its national e-invoicing rollout, withdrawing the wave previously scheduled for 1 July 2026.
The Inland Revenue Board of Malaysia (IRBM), which is implementing the mandate through its MyInvois platform, confirmed that the minimum sales threshold for mandatory adoption has been raised from RM500,000 to RM1 million.
As a result, the smallest businesses will no longer fall within the 2026 enforcement band.
The adjustment appears to reflect concerns around low SME readiness. Recent research led by Xero highlights significant gaps in awareness and preparation among small and medium-sized enterprises. Only 30% of SMEs reported fully understanding what e-invoicing requires, while just 31% have begun integrating the system into their operations. Notably, nearly one in five SMEs—19%—have not taken any steps toward implementation.
According to VATCalc, the revised timeline is now:
The MyInvois phased launch is now:
- 1 August 2024: taxpayers annual turnover above RM 100 million
- 1 January 2025: taxpayers with annual turnover over RM 25 million
- 1 July 2025: taxpayers above RM5 million with 6-months’ soft launch
- 1 January 2026: taxpayers with annual turnover between RM1 million and RM5 million with 6-months’ soft launch
- 1 July 2026: (now cancelled) taxpayers with annual turnover between RM500,000 and RM1 million
The revised threshold gives smaller businesses additional time to prepare for eventual inclusion in Malaysia’s phased e-invoicing mandate.