e-Invoice

Overview of e-Invoice

What is e-Invoice?

An e-Invoice is a digital record of a transaction between a supplier and a buyer.
It is structured in a specialized XML or JSON format, rather than standard file types such as PDF, DOC, or JPEG.
It serves as a modern alternative to traditional paper or electronic documents, including invoices, credit notes, debit notes, and refund receipts.
Additionally, an e-Invoice functions as official documentation of income and expenses.

Implementation Timeline

e-Invoice will be implemented in phases to ensure smooth transition. The roll-out of e-Invoice has been planned with careful consideration, taking into account the turnover or revenue thresholds, to provide taxpayers with sufficient time to prepare and adapt to the e-Invoice implementation.

Below is the e-Invoice implementation timeline:

Important Note:

With Audited Financial Statements: Based on annual turnover or revenue stated in the statement of comprehensive income in the audited financial statements for financial year 2022.
Without Audited Financial Statements: Based on annual revenue reported in the tax return for year of assessment 2022.

*e-Invoice implementation timeline been updated on 06 June 2025

Businesses Established from Year 2023-2025

For new businesses or operations commencing:

Businesses Established from 2026 Onwards

For new businesses starting from 2026 onwards, the obligation to implement e-Invoicing depends on when the business starts and how quickly it reaches RM500,000 in annual revenue:

1) If the business reaches RM500,000 turnover / revenue in the first year:

e-Invoicing starts on 1 July 2026 or on the business commencement date, whichever is later.

2) If the business does not reach RM500,000 in the first year:

e-Invoicing will start on 1 January of the second year following the year in which the business eventually reaches RM500,000.

All Taxpayers are required to implement e-Invoice

Submission Requirement

1) Digital Certificates

Digital Certificate acts as a taxpayer ID for online transactions
Ensures secure signing and trustworthiness of signed content
Issued based on the taxpayer’s Tax Identification Number (TIN) and additional information

2) TIN Retrieval