Updated e-Invoice Quick Guide 2025 | Must-know highlights for Malaysian Businesses!

• Phase 1：August 2024
  Company with an annual turnover of RM 100 million and above.
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• Phase 2：January 2025
  Company with an annual turnover of RM 25 million and above.
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• Phase 3：July 2025
  Company with an annual turnover of RM 500K and above.
  .
• Phase 4：January 2026
  Company with an annual turnover of RM 150K to RM 500K.
  .
• Micro SMEs earning below RM150K annually exempted from e-Invoicing.

*𝐁𝐚𝐬𝐞𝐝 𝐨𝐧 𝐚𝐧𝐧𝐮𝐚𝐥 𝐭𝐮𝐫𝐧𝐨𝐯𝐞𝐫 𝐢𝐧 𝟐𝟎𝟐𝟐.
*𝐀 𝐬𝐢𝐱-𝐦𝐨𝐧𝐭𝐡 𝐢𝐧𝐭𝐞𝐫𝐢𝐦 𝐫𝐞𝐥𝐚𝐱𝐚𝐭𝐢𝐨𝐧 𝐩𝐞𝐫𝐢𝐨𝐝 𝐢𝐬 𝐠𝐫𝐚𝐧𝐭𝐞𝐝 𝐟𝐨𝐫 𝐞𝐚𝐜𝐡 𝐩𝐡𝐚𝐬𝐞.

•  Companies registered in 2023 or 2024
  – Based on available financial statements.
  – To be implemented on July 1, 2025 if annual turnover > RM500K.
  – To be implemented on January 1, 2026 if annual turnover is between RM 150K to RM 500K.

•  New companies registered in 2025
  – If annual turnover > RM150K, e-invoicing will be implemented on January 1, 2026.

• A six-month of interim relaxation period will be granted from the first day of the commencement of each phase.
• During the interim relaxation period, Taxpayers are allowed to:
  – Issue Consolidated E Invoice for all activities and transactions.
  – Taxpayers are not restricted to input the receipt/statement/bill reference numbers in the ‘Description of Product or Service’ field.
  – If the company meets the eight situation in Section 8.3 of the e-invoice guidelines, they will need to issue a Self-Billed e-invoice within the interim relaxation period and submit it as a Consolidated Self-Billed by the 7th of the following month.

e-Invoices can be issued using a generic TIN number based on the following three scenarios:

• When buyers don’t have a TIN or don’t need to use it, companies can use “EI00000000010”.
• The buyer is a foreign company without a TIN number, companies can use “EI00000000020”.
• When the buyer is a government department, companies can use “EI00000000040”.
•  If the seller is a foreign company and does not have a TIN number, companies can use “EI00000000030” (self-billed e-invoice).

• Where the Buyer does not require an e-Invoice, the Supplier will issue a normal receipt/bill/invoice to the Buyer. (As these documents are not e-invoices, they would not be required to be submitted for IRBM’s validation).
• Suppliers are allowed to consolidate transactions with Buyers who do not require an e-Invoice on a monthly basis and submit a consolidated e-Invoice to IRBM, by the 7th of the following month.
• Certain transactions cannot use consolidated e-invoices：
  – Automotive (Sale of Motor Vehicle)
  – Aviation (Sale of Air Ticket, Private Charter)
  – Luxury goods and jewellery
  – Construction (Contract as defined in ITA 1967)
  – Wholesale and retailers of construction materials (Defined in Lembaga Pembangunan Industri Pembinaan Malaysia Act 1994)
  – Licensed betting and gaming (pay-out to winners of all betting and gaming activities) (Casino and gaming machines are exempted until further notice, as per e-invoice specific guide issued by LHDN on 28 Oct 23)
  – Payment to agents / dealers / distributors (defined in ITA 1967)

• When a sale or transaction is concluded, an e-Invoice is issued by Supplier to recognise income of the Supplier (proof of income) and as a record for purchases made/ spending by Buyer (proof of expense).
• There are certain circumstances where another party (other than the Supplier) will be allowed to issue a self-billed e-Invoice on behalf of Supplier.

• Payment to agents, dealers, distributors, etc.
• Goods sold or services rendered by foreign suppliers
• Profit distribution (e.g., dividend distribution)
• e-Commerce transactions
• Pay-out to all betting and gaming winners
• Acquisition of goods or services from individual taxpayers
• Interest
• Insurance Compensation
• Capital reduction / share buybacks
• Rent, property management & staff training costs