KUALA LUMPUR – The government has announced a revised timeline for e-invoicing implementation, delaying the mandate for micro, small and medium enterprises (SMEs) with annual sales between RM150,000 and RM500,000 until January 1, 2026.
Second Finance Minister Datuk Seri Amir Hamzah Azizan stated this extension will allow affected businesses more preparation time. The government will also provide a six-month transition period, benefiting more than 240,000 SMEs.
In a further easing of requirements, the government has completely exempted small traders with annual sales below RM150,000 from the e-invoicing obligation. This exemption covers over 700,000 micro-businesses, including food stall operators and small vendors. However, authorities continue encouraging voluntary adoption among these traders to enhance financial record-keeping and operational efficiency.
The e-invoicing system was initially rolled out in phases:
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August 1, 2024: For companies with RM100 million+ annual sales
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January 1, 2025: For businesses with RM25 million to RM100 million turnover
To date, 25,173 companies have implemented the system, issuing a combined 181.3 million e-invoices. Notably, Amir Hamzah observed that some businesses scheduled for the third phase (July 1, 2025 implementation) have already voluntarily adopted e-invoicing, demonstrating growing acceptance of digital transformation among Malaysian businesses.
Source Credited: https://www.businesstoday.com.my/2025/03/03/e-invoicing-for-smes-postponed-to-2026/
