Malaysia Delays 4th Wave E‑Invoicing Phase to January 2027
The Malaysian government has formally postponed the mandatory e‑invoicing compliance deadline for businesses with annual sales between RM1 million and RM5 million by one year to 1st January 2027. Prime Minister Datuk Seri Anwar Ibrahim announced the extension on 5th January 2026, acknowledging that implementation costs and readiness challenges continue to weigh on smaller enterprises.
This change is part of the MyInvois phased rollout of a CTC‑style e‑invoicing regime administered by the Inland Revenue Board of Malaysia (LHDN). The 4th wave was originally due in 2025–26, but the Cabinet’s decision to raise the exemption threshold from RM500,000 to RM1 million effectively cancels the previously planned 5th phase, merging the 4th and 5th waves.
Under the revised timeline:
- 1 Aug 2024: Taxpayers > RM100 million turnover began e‑invoicing.
- 1 Jan 2025: Taxpayers > RM25 million.
- 1 Jul 2025: Taxpayers > RM5 million (with soft launch).
- 1 Jan 2027: Taxpayers between RM1 million–RM5 million will enter mandatory e‑invoicing with an extended grace period ahead of penalties.
While the legal compliance start date remains 1st January 2026, the extended penalty‑free transition through 2026 effectively gives impacted businesses additional time to implement systems and processes.
Why it matters: The delay highlights persistent readiness and cost issues for SMEs, even as Malaysia progresses toward a transaction‑level digital VAT reporting regime. Raising the exemption threshold and extending compliance timelines aims to balance enforcement with practicality, while preserving momentum toward digitised tax administration and more comprehensive invoice‑level data capture.