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Malaysia extends e-invoicing deadline for small businesses

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Small businesses with a revenue below RM 500K get more time to transition to digital invoicing and adapt to the new requirements.

The Malaysian government has announced a six-month extension for small enterprises to adopt e-invoicing, giving them more time to prepare. The official e-invoicing guidelines have been updated accordingly on the Inland Revenue Board of Malaysia (IRBM) website.

With this extension, very small businesses with an annual turnover between RM 150,000 (~30 K€) and RM 500,000 (~100 K€) will now have until January 1, 2026 to start using e-invoicing, instead of the previously planned July 1, 2025, deadline.

Finance Minister, Datuk Seri Amir Hamzah Azizan, stated that the extension aims to support over 240,000 SMEs in adapting to the new system without unnecessary pressure.

The e-invoicing mandate in Malaysia is therefore now comprised of 4 phases based on annual turnover:

  • August 1, 2024: mandatory for companies exceeding RM 100 million turnover (~20M€)
  • January 1, 2025: mandatory for companies exceeding RM 25 million turnover (~5M€)
  • July 1, 2025: mandatory for companies exceeding RM 500,000 turnover (~100K€)
  • January 1, 2026: mandatory for companies exceeding RM 150,000 turnover (~100K€)

Companies with an annual turnover below RM 150,000 remain exempted entirely from the mandate.

For a deeper dive into Malaysia’s e-invoicing framework and compliance requirements, explore our Malaysia Country Profile

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