The E-Invoice Threshold Is Now RM3 Million. Does My Business Still Need E-Invoicing?
By Searchneasy Digital Team | 26 January 2027
For two years, e-invoicing was the topic every business owner in Malaysia was worried about. Then, on 30 August 2026, the government announced a higher threshold, and many small businesses breathed a sigh of relief.
Now the questions are different. Am I below the line or not? If I am exempt, should I stop what I started? And if I am above it, what do I still need to do? Here is a plain explanation, so you can have a better conversation with your accountant.
Quick Answer
From 1 September 2026, the e-invoicing threshold rose from RM1 million to RM3 million. Businesses with annual sales or income below RM3 million are not required to implement e-invoicing, while businesses above it still must. LHDN still encourages smaller businesses to join voluntarily. Confirm your own position with your tax agent or at hasil.gov.my.
Watch the Short Video
What Exactly Changed on 1 September 2026?
According to the LHDN statement reported by The Star on 30 August 2026, the government raised the e-invoice implementation threshold from RM1 million to RM3 million, effective 1 September 2026. Micro, small and medium enterprises with annual income or sales below RM3 million are not required to implement e-invoicing.
LHDN also said it still strongly encourages MSMEs to take part voluntarily, in line with the push to digitalise businesses. Full details are on the LHDN e-invoice page at hasil.gov.my.
Who Still Needs to E-Invoice?
| Your situation | What it usually means |
|---|---|
| Annual sales or income of RM3 million and above | E-invoicing is still required |
| Below RM3 million | Not required, but you may join voluntarily |
| Below RM3 million, but sales growing fast | Watch the number, because you may cross the line later |
| Not sure which applies | Check with your tax agent or hasil.gov.my before deciding |
This table is a simple guide only. Rules have details and exceptions, so treat your tax agent and LHDN as the final word for your own company.
We Are Below RM3 Million. Why Would Anyone Still Choose E-Invoicing?
Some businesses below the threshold are keeping e-invoicing, and the reasons are practical, not legal:
- Big customers ask for it. If you supply to larger companies that already e-invoice, they may prefer suppliers who can send validated invoices.
- The setup is already done. If your system already submits to MyInvois, switching it off may not save much.
- Cleaner records. Every invoice is numbered, validated and stored, which helps at audit time.
- Growth plans. If you expect to pass RM3 million within a year or two, staying ready avoids a rush later.
None of these mean you must. They are simply reasons to think before you switch anything off.
What Do Large Customers Usually Ask Their Suppliers For?
If you supply to a larger company that already e-invoices, its accounts team may ask you for a few things: your TIN and registration details, invoices that match their purchase orders, and sometimes a validated e-invoice instead of a PDF or paper invoice. Some will accept a normal invoice from an exempt supplier. Others prefer suppliers who can send through MyInvois, simply because it makes their own records cleaner.
So before you decide anything, ask your top five customers how they would like to receive your invoices in 2027. Their answer may matter more to your business than the threshold itself.
It is also worth checking how your invoices are produced today. If they come out of AutoCount, SQL Account or an ERP, adding e-invoicing later is usually a connection job, not a new system.
We Are Above RM3 Million. Are We Doing It the Hard Way?
Many businesses that must e-invoice are still doing it by hand: creating the invoice in their accounting software, then keying the same details into the MyInvois portal again. It works, but it takes time, and one wrong customer TIN or tax code can lead to a rejected invoice.
The better way is to let your own system send the invoice to MyInvois directly. That can mean an e-invoicing system that creates and submits the invoices for you, or an integration that connects AutoCount, SQL Account, your ERP or your POS to MyInvois, so nobody has to type the same invoice twice.
What Should We Do Now?
- Confirm your annual sales figure and your position with your tax agent.
- If you are exempt, decide whether any big customer still needs e-invoices from you.
- If you must e-invoice, check how many invoices are still keyed into the portal by hand each month.
- If that number is high, look at connecting your existing system to MyInvois rather than adding more manual work.
How Searchneasy Can Help
Searchneasy (Search and Easy Sdn Bhd) is based in Penang, with a team in Malaysia that has spent more than 20 years building business systems for manufacturers, engineering companies, trading firms, retailers and service businesses in Malaysia and overseas.
Our e-invoicing system creates invoices in the MyInvois format, checks them before sending, submits them to LHDN and keeps customer TIN and registration numbers on file. If you already use AutoCount, SQL Account, an ERP or a POS, our e-invoicing integration connects it to MyInvois, so you keep the software you know.
Not sure whether you still need it? WhatsApp us with how you invoice today, and we will help you work out the simplest setup. For your legal position, your tax agent remains the right person to confirm.
Frequently Asked Questions
What is the e-invoice threshold in Malaysia from September 2026?
From 1 September 2026, the e-invoice implementation threshold is RM3 million in annual sales or income, raised from RM1 million. Businesses below RM3 million are not required to implement e-invoicing. Confirm your own position with your tax agent or at hasil.gov.my.
My business is below RM3 million. Do I need to stop e-invoicing?
No, you do not need to stop. LHDN still encourages smaller businesses to join voluntarily. Some businesses keep e-invoicing because large customers ask for it, because the setup is already in place, or because they expect to cross RM3 million soon.
Can I connect AutoCount or SQL Account to MyInvois?
Yes. An integration can send invoices from AutoCount, SQL Account, an ERP or a POS straight to MyInvois, so your staff do not key the same invoice into the portal again. Searchneasy builds these e-invoicing integrations for Malaysian businesses.
What happens if my sales pass RM3 million later?
If your annual sales or income reach the threshold, e-invoicing will apply to your business. Check the current rules and timing with your tax agent or hasil.gov.my, and prepare your system early so you are not rushing when it applies.
Does Searchneasy give tax advice on e-invoicing?
No. Searchneasy builds and connects the e-invoicing system. Whether your business must e-invoice is a tax question for your tax agent or LHDN. Once you know your position, Searchneasy can help you set up the simplest way to issue and submit e-invoices.
Related Articles
- E-Invoicing in Malaysia 2026: Which Businesses Are Affected?
- E-Invoicing in Malaysia: How to Integrate MyInvois With Your ERP or Accounting System
- API Integration for E-Invoicing in Malaysia
- ERP vs Accounting Software: What Should SMEs Choose?
Recognise Your Own Business in This?
If this sounds like your business, tell us what is happening today. We will listen, ask a few questions and tell you honestly what would help, even if the answer is a small fix.
WhatsApp Searchneasy: +60 12-720 3513
Or email customercare@searchneasy.com