E-Invoicing Malaysia Guidelines 2025

Starting from 2025, Malaysia is moving towards mandatory e-invoicing for businesses. If you run a company—big or small—it’s important to understand what this change means, how to stay compliant, and what steps you need to take now.

This blog will explain the official e-invoicing guidelines by LHDN (Lembaga Hasil Dalam Negeri) in simple terms, so you can prepare with confidence.

What is E-Invoicing?

E-invoicing stands for electronic invoicing—a digital version of a traditional invoice that is issued, sent, and stored online.

But this isn’t just a PDF invoice sent via email.
Under the LHDN e-invoicing system, invoices are sent through a government-approved digital platform, where they are validated and tracked by the tax authority in real time.

Key E-Invoicing Implementation Dates in Malaysia

According to LHDN’s official timeline:

August 1, 2024 – Mandatory for businesses with annual revenue over RM100 million
January 1, 2025 – Mandatory for businesses earning above RM25 million
July 1, 2025 – Mandatory for businesses earning of more than RM5 million up to RM25 million
January 1, 2026 – Mandatory for businesses earning of more than RM1 million up to RM5 million
July 1, 2026 – Mandatory for businesses earning of up to RM1 million

Who Must Use E-Invoicing in Malaysia?

All businesses operating in Malaysia, including:

Sdn Bhd companies
Sole proprietors
Partnerships
E-commerce sellers
Service providers
Freelancers and self-employed

If you issue invoices, you’ll be expected to move to e-invoicing.

What’s Included in the E-Invoicing Guidelines?

LHDN’s guidelines cover the following:

1. Invoice Validation by LHDN

Each invoice must be sent to LHDN first for validation through the MyInvois system. Once validated, a QR code and invoice number are issued.

2. Standardized Invoice Format

All e-invoices must include:

Seller and buyer details
Tax identification number
Product/service details
SST/VAT info (if applicable)
Unique invoice ID and timestamp

3. Real-Time Data Submission

Invoices are sent and validated in real time or batch, depending on your system.

4. Cancellation & Revisions

If you need to cancel or edit an e-invoice, you must do it via the LHDN portal within a specific period.

Benefits of E-Invoicing

✔ Simplifies Tax Filing – Real-time data means fewer errors and faster audits
✔ Improves Business Efficiency – Automates invoicing and record-keeping
✔ Prevents Tax Fraud – Transparent system protects businesses and the government
✔ Faster Payments – E-invoices reduce delays in receiving payment

How Million Helps You Stay Compliant

At Million, we provide LHDN-ready e-invoicing software trusted by thousands of Malaysian businesses. Here’s how we make it easy:

✅ Built-in integration with LHDN MyInvois system
✅ Auto-generate validated e-invoices with QR codes
✅ Easy invoice editing, tracking, and exporting
✅ SST-compliant invoice format
✅ Multi-user access

Whether you’re a small retailer, an accountant, or a growing startup, Million helps you transition smoothly.

How to Prepare for E-Invoicing

Here’s what you should do now:

1️⃣ Register with LHDN (MyInvois portal)
2️⃣ Choose a software provider like Million
3️⃣ Train your staff on how to use e-invoicing features
4️⃣ Migrate your current invoicing data into digital format
5️⃣ Start testing before the deadline

Ready to Get E-Invoice Compliant?

Don’t wait until the last minute.

Let Million Accounting with Invoicing System help you make the switch to e-invoicing fast, simple, and stress-free.

FAQs – E-Invoicing Malaysia Guidelines

Q: Is e-invoicing mandatory in Malaysia?
A: Yes. According to LHDN’s official timeline:

August 1, 2024 – Mandatory for businesses with annual revenue over RM100 million
January 1, 2025 – Mandatory for businesses earning above RM25 million
July 1, 2025 – Mandatory for businesses earning of more than RM5 million up to RM25 million
January 1, 2026 – Mandatory for businesses earning of more than RM1 million up to RM5 million
July 1, 2026 – Mandatory for businesses earning of up to RM1 million