E-InvoicingMalaysia

MyInvois Compliance Phases Malaysia 2026

Every deadline, turnover threshold, and enforcement date — all in one place.

Updated 2026Independent guide — not affiliated with LHDN or the Malaysian government

Phase Overview

PhaseGo-Live DateAnnual TurnoverBusinesses AffectedRelaxation UntilEnforcement From
Phase 1Active1 August 2024Above RM100 millionLarge corporations, PLCs, MNCs31 July 20251 August 2025
Phase 21 January 2025RM25M–RM100MMid-large companies30 June 20251 July 2025
Phase 31 July 2025RM5M–RM25MSMEs (upper tier)31 December 20251 January 2026
Phase 41 January 2026RM1M–RM5MSMEs (lower tier)31 December 20261 January 2027
Phase 5CancelledCancelledBelow RM1MMicro-businesses—Exempt (threshold doubled from RM500K to RM1M)

Phase 5 was cancelled following the government's decision to double the exemption threshold from RM500,000 to RM1 million annual turnover.

What the Relaxation Period Means

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Grace period — not an exemption

During the relaxation period, LHDN does not impose penalties for errors in e-invoice submission. Businesses are expected to have their systems set up and to attempt compliance, but mistakes will not be penalised. Full enforcement — carrying penalties of RM200 to RM20,000 per non-compliant invoice — begins on the enforcement date shown in the table above for each phase.

The relaxation period does not mean you can delay implementing your e-invoicing system. Use this time to select your software, configure your ERP or accounting system, and train your team.

How to Determine Your Phase

1

Identify your annual turnover

Use your most recent audited accounts or estimated annual revenue. Turnover means gross revenue before deductions — not profit.

2

Match to the phase table

Find the row in the phase table above that covers your turnover range. Your go-live date and enforcement date are in that row.

3

Check if your go-live date has passed

If yes, you should already be issuing e-invoices via MyInvois. If no, use the remaining time to implement your system before the deadline.

Individual Transaction Rule

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RM10,000 per-invoice threshold

Regardless of annual turnover, any individual issuing a single invoice or receipt exceeding RM10,000 must issue a full e-invoice via MyInvois. This applies even to businesses that are otherwise exempt from mandatory e-invoicing (i.e., those with annual turnover below RM1 million).

If you are in the exempt category but regularly issue invoices above RM10,000, you must be set up to submit those transactions through MyInvois.

Penalties for Non-Compliance

Offence TypePenalty
First offenceRM200 to RM20,000 per non-compliant invoice
Continued non-complianceRM200 to RM20,000 per invoice, per day
Fraudulent invoicingUp to RM50,000 fine and/or 3 years imprisonment

Note: Penalties apply only after the relaxation period ends for each phase. During the relaxation period, LHDN does not impose fines for good-faith errors — but businesses must be attempting to comply.

Key Dates Timeline

  1. Phase 1 go-live (RM100M+)

  2. Phase 2 go-live (RM25M–RM100M)

  3. Phase 3 go-live (RM5M–RM25M)

    Phase 2 enforcement begins

  4. Phase 1 enforcement begins

  5. Phase 4 go-live (RM1M–RM5M)

    Phase 3 enforcement begins

  6. Phase 4 enforcement begins

Go-live dateEnforcement begins

Frequently Asked Questions

What is the current MyInvois phase in Malaysia?

As of mid-2025, Phase 1 (turnover above RM100 million) and Phase 2 (RM25M–RM100M) are both live. Phase 3 (RM5M–RM25M) goes live on 1 July 2025. Businesses in each phase are required to issue e-invoices through the MyInvois system — the relaxation period for Phase 2 ended on 30 June 2025, meaning full enforcement is now active. Check the phase table above to identify which phase applies to your business.

What happens if I miss my phase deadline?

If you miss your phase go-live deadline, you are technically non-compliant. However, LHDN introduced a relaxation period for each phase during which penalties are not imposed, provided you are making a genuine effort to comply. Once the enforcement date passes, non-compliance carries penalties of RM200 to RM20,000 per non-compliant invoice, per occurrence. Repeated non-compliance can lead to daily fines, and fraudulent invoicing can result in criminal prosecution.

Is Phase 5 still happening?

No — Phase 5 has been officially cancelled. The original Phase 5 would have covered micro-businesses with annual turnover below RM500,000. The Malaysian government subsequently doubled the exemption threshold to RM1 million, meaning businesses earning below RM1 million per year are now fully exempt from MyInvois mandatory e-invoicing. Only the RM10,000 individual transaction rule applies to exempt businesses.

How do I calculate my annual turnover for phase determination?

Use your most recent audited financial statements to determine your annual turnover. If audited accounts are not yet available (e.g., for a new business), use your estimated annual revenue. Turnover refers to gross revenue before deductions, not profit. If your turnover sits close to a phase boundary, err on the side of caution and prepare for the earlier phase. When in doubt, consult your accountant or tax agent for a formal determination.

Find out which software is right for your phase

Use our free readiness calculator to get matched with LHDN-compliant e-invoicing software that fits your phase, industry, and budget.

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EInvoicingMalaysia.com is an independent directory. We are not affiliated with LHDN or the Malaysian government.