Free tool · LHDN e-invoice
Do I need to issue e-invoices?
Answer three questions about your business and see when LHDN's e-invoice rules apply to you, whether the RM3 million exemption covers you, and what the relaxation until 31 December 2027 allows.
Your result
Answer the questions to see your result.
You've had to issue e-invoices since 1 August 2024.
Turnover above RM100 million puts you in Phase 1. Its relaxation period ended on 31 January 2025, so the full rules apply.
You've had to issue e-invoices since 1 January 2025.
Turnover above RM25 million, up to RM100 million, puts you in Phase 2. Its relaxation period ended on 30 June 2025, so the full rules apply.
You've had to issue e-invoices since 1 July 2025.
Turnover above RM5 million, up to RM25 million, puts you in Phase 3. Its relaxation period ended on 31 December 2025, so the full rules apply.
You've had to issue e-invoices since 1 January 2026.
Turnover of RM3 million to RM5 million puts you in Phase 4.
You've had to issue e-invoices since 1 July 2026.
Your turnover reached RM3 million in YA2023, YA2024 or YA2025, so the exemption doesn't apply.
Your turnover is under RM3 million, but the exemption doesn't apply to a business whose group includes a company turning over RM3 million or more.
You must issue e-invoices from the day the business started operating, or 1 July 2026 if it started before then.
Your turnover is under RM3 million, but the exemption doesn't apply to a business whose group includes a company turning over RM3 million or more.
LHDN's relaxation covers businesses whose date was 1 January or 1 July 2026. It hasn't said whether it covers one that started later, so ask your tax agent.
You must issue e-invoices from 1 January .
That is 1 January in the second year after the year of assessment in which turnover first reached RM3 million. Until then you're exempt. Once you have started, you stay in, even if turnover falls back under RM3 million.
You're exempt, for now.
Your turnover is under RM3 million and nothing in your group brings you in. You don't need to apply for the exemption. If turnover reaches RM3 million in a year of assessment, you must start on 1 January in the second year after it.
You can still issue e-invoices voluntarily. If you sell through an e-commerce platform, the platform issues the e-invoices and may ask you for details.
It depends on your group.
If no company in your group turns over RM3 million or more, you're exempt. If one does, the exemption doesn't apply and you must issue e-invoices from 1 July 2026, or from the day the business started operating if that was later.
The test is about companies holding 20% or more of the shares, or controlling operations. Your tax agent or company secretary can tell you from your share register.
Relaxation until 31 December 2027. Until then you may issue one consolidated e-invoice a month for all your sales, including single sales over RM10,000, within 7 days after the month ends. Do that and LHDN won't prosecute under section 120. From 1 January 2028 the full rules apply.
Missed some months? LHDN's Special Voluntary Disclosure Programme runs until 31 December 2027.
Not issuing an e-invoice when you must is an offence under section 120(1)(d) of the Income Tax Act 1967: a fine of RM200 to RM20,000, up to 6 months' imprisonment, or both, for each non-compliance.
A guide to LHDN's published rules, not tax advice. Checked on 23 October 2026 against LHDN's e-Invoice FAQ (updated 4 September 2026). LHDN has changed these dates more than once, so confirm yours with LHDN or your tax agent.