Businesses with annual revenues below RM150,000 are exempt from e-invoicing Malaysia. This e-invoicing exemption aims to ease the burden on micro-enterprises and smaller businesses.
When Exactly Businesses in Malaysia with Revenue > RM150k in 2024 Start e-invoicing?
MSME is required to implement e-Invoice starting from 1 January in the second year following the year in which the total annual turnover or revenue exceeds RM150,000.
For example:
Johan operates a business specialising in the sale of fertilisers, Winner Fertilizer Sdn. Bhd. and its accounting period ends every 31 December.
As at 31 August 2024, his company already recorded an annual turnover or revenue exceeding RM150,000. Since the company has exceeded the exemption threshold,
Winner Fertilizer Sdn. Bhd. is required to implement e-Invoice starting from 1 January 2026, which is from 1 January in the second year after the year in which the exemption threshold has been surpassed.
For new businesses starting in 2024:
If their annual revenue exceeds RM150,000, they must begin e-invoicing on 1 January of the following year after the next year.
Example: A business starting in 2024 and exceeding RM150,000 in revenue must start e-invoicing on 1 January 2026.
Timeline Summary:
- 2024: Revenue surpasses RM150,000 between January and October.
- 2025: E-invoicing is not required yet.
- 2026: E-invoicing becomes mandatory starting from 1 January 2026.
What if their annual turnover or revenue falls below the RM150,000 threshold in the subsequent years?
No exemption will be granted after the mandatory implementation year has been determined, and taxpayers are required to continue issuing e-Invoices even if their total annual turnover or revenue do not exceed RM150,000 in the subsequent years.
For example:
Similar facts pattern as Winner Fertilizer Sdn. Bhd. above.
However, the annual turnover or revenue recorded as of 31 December 2025 has fallen below the RM150,000 threshold.
Even though the 2025’s annual turnover or revenue recorded is below the exemption threshold, Winner Fertilizer Sdn. Bhd. will remain obligated to implement e-Invoice.
A sole proprietor has more than one business?
For sole proprietorship, the determination of annual turnover or revenue below RM150,000 threshold includes all sole proprietorship businesses owned or registered under the name of the respective sole proprietor.
For example:
Awiyah owns several sole proprietorship businesses, namely RAM Cosmetic Enterprise, Princess Tailor and Fifty Cafe.
The total annual turnover or revenue as of 31 December 2025 are as follows:
| Businesses | Annual Revenue RM |
|---|---|
| RAM Cosmetic Enterprise | 55,000 |
| Princess Tailor | 60,000 |
| Fifty Café | 45,000 |
| 共计 | 160,000 |
In view that the total annual turnover or revenue as of 31 December 2025 for all sole proprietorship businesses owned or registered under Awiyah’s name exceed RM150,000, Awiyah is required to implement e-Invoice starting from 1 January 2027.