Many still don’t realize — you might be part of the next mandatory group/company for e-Invoice implementation!

What is Batch 3?
If your annual revenue is between RM500,000 and RM25 million, whether you’re a business owner, freelancer, or self-employed — this applies to YOU.

e-Invoice isn’t just a new “system” — it’s a major shift in Malaysia’s tax reporting framework.
No matter what industry you’re in, if you issue invoices and generate income, you’ll need to report each invoice through LHDN’s platform.

This will change how you issue invoices, collect payments, and file taxes.
That means:
– Word, Excel, or handwritten invoices will no longer be accepted
– Every invoice must be submitted in real-time or periodically to LHDN
– Even income from Shopee, Lazada, freelance work, insurance, service fees, etc. will be included

How to know if you’re in Batch 3?

– Refer to your 2022 annual revenue
– For companies: Check your audit report
– For sole proprietors/partnerships: Check your tax return form

Batch 1
Annual Revenue： > RM100M
Implementation Date：1/10/2024

Batch 2
Annual Revenue： RM25M – RM100M
Implementation Date：1/1/2025

!! Batch 3
Annual Revenue： RM500K – RM25M
Implementation Date：1/7/2025

!! Batch 4
Annual Revenue： RM150K – RM500K
Implementation Date：1/1/2026

Exempted
Annual Revenue： < RM150K

Updated as of February 2025

The earlier you prepare, the smoother the transition. Don’t wait until the last minute to panic!

Let’s dive in and explore some common questions and how to tackle them !

Q&A

When does a company need to start implementing e-Invoice?

The implementation date for e-Invoice depends on your company’s or individual’s annual revenue.

How do I know which implementation phase I fall under?

You can determine your e-Invoice implementation phase by referring to your 2022 annual revenue:

For companies (Sdn Bhd / Bhd), refer to the annual revenue stated in the Audit Report
For sole proprietorships or partnerships, refer to the annual revenue in your Tax Return Form

I recently started a new company — what should I do about e-Invoice implementation?

For companies registered in 2023 or 2024, the e-Invoice implementation date depends on the available financial report:

If your annual revenue exceeds RM500,000, implementation starts on 1 July 2025.
If your annual revenue is RM500,000 or less, implementation begins on 1 January 2026.

For companies registered in 2025, e-Invoice will be required starting 1 January 2026, provided the annual revenue exceeds RM150,000.

What happens if I don't comply with the e-Invoice implementation?

In the initial phase, they will focus on education and reminders.
However, long-term non-compliance may result in penalties, tax audits, or even being blacklisted.

What can I do to prepare for e-Invoice implementation?

You can start preparing by:

Identifying which implementation phase you fall under (based on your 2022 Audit Report or annual revenue)
Consulting an accountant or professional advisor if needed
Reviewing and updating your internal processes and invoicing systems to ensure readiness

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