The Malaysian government announced an increase in the e-Invoice implementation threshold from RM1 million to RM3 million in annual revenue, effective September 1, 2026 [1, 2, 3, 4, 5, 6, 7]. This change will exempt micro, small, and medium enterprises (MSMEs) with sales below RM3 million from mandatory e-Invoicing requirements [1, 2, 3, 4, 5, 6, 7]. More than 1.1 million MSMEs are expected to benefit from this exemption. Prime Minister Datuk Seri Anwar Ibrahim said during the 2026 National Day address that "this adjustment is expected to exempt 1.1 million businesses from mandatory e-Invoicing" [6].
Since the rollout of e-Invoicing on August 1, 2024, 265,379 taxpayers have already submitted over 1.84 billion e-Invoices to the Inland Revenue Board (IRB) [1, 2, 3, 4, 5, 7]. The government encourages MSMEs below the new threshold to voluntarily participate in e-Invoicing despite the exemption [1, 2, 3, 4, 5, 7]. According to the IRB, "the Madani government’s initiative reflects its concern in easing the compliance burden and costs borne by MSMEs, while giving businesses more room to focus on sustaining and expanding their operations" [7].
To support MSMEs, the government will provide education and guidance programs, as well as continuous engagement through tutorials on the MyInvois Portal, applications, and electronic point-of-sale systems for e-Invoicing implementation [1, 2, 3, 4, 5, 7].
The threshold increase was first announced by Prime Minister Anwar on August 30 during the National Day Prime Minister’s Address [1, 2, 3, 4, 6, 7]. The new RM3 million threshold goes into effect from September 1, exempting all MSMEs with annual revenues below this figure from the mandatory e-Invoice submission rule [1, 2, 3, 4, 5, 7].
