94% Of Online Business Owners Want Exemption From e-Invoicing

A recent poll by Datametrics Research and Information Centre (DARE) found that 94.7% of online business owners aware of e-invoicing are demanding exemption from the government’s mandatory e-invoicing rule, citing it as either too tedious (87.3%) or too confusing (12.7%).

The survey, conducted over two weeks through online and on-ground channels, gathered responses from 516 micro online entrepreneurs earning less than RM150,000 annually. It revealed that only 40.1% of respondents knew about e-invoicing, highlighting a major gap in awareness as the government prepares to enforce the mandate for all businesses—including small-scale online sellers—starting 1 January 2026.

Pankaj Kumar, Managing Director of DARE, stated, “The government’s e-invoicing initiative is part of a wider economic digitalisation drive, but applying it uniformly—without exceptions—could overwhelm the smallest businesses. This two-week survey aimed to gauge the sentiment of micro online entrepreneurs, especially amid increasing media coverage of e-invoicing. The message is clear: many are confused, worried, and feel ill-prepared.”

“The results indicate a pressing need for the government to reassess and conduct deeper research into how such policies impact the micro-digital economy. Simultaneously, tailored education and support programs are essential to help small online sellers understand and meet compliance requirements. Without these measures, we risk placing an undue burden on the very businesses we should be assisting.”

The survey also uncovered low overall awareness of e-invoicing, with 59.9% of respondents unfamiliar with the concept. Additionally, 78.1% expressed concerns about how the mandate would affect their daily operations.

When asked about their likely response to the new rule, only 22.7% said they would try to comply, while a larger share (31.6%) admitted they would cease online selling entirely. Another 21.1% opted for a “wait and see” approach, and 24.6% outright refused to comply—signaling a high risk of non-compliance and potential disruption to the micro-digital economy.

Pankaj emphasized that these findings should prompt policymakers to reconsider their current strategy, particularly for micro online sellers operating at the fringes of the digital economy.