Malaysia splits the last e-invoice phase into three bands, ending 1 July 2026
This page records one dated change. For the rules in Malaysia as they stand today, see the Malaysia guide →
- Jurisdiction
- Malaysia
- Tax
- Income Tax / e-Invoice
- Change type
- E-invoicing
- Status
- In force
- Impact
- FYI
- Announced
- 26 June 2025
- Effective
- 30 June 2025
- Instrument
- MY-SUBSIDIARY-LEGISLATION-P-U-A-196-2025
- Authority
- Attorney General's Chambers, Malaysia (Warta Kerajaan Persekutuan / Federal Gazette)
- Verified
- Fetched from official source · high confidence
Malaysian businesses with annual sales of RM25 million or less, which fell in the final phase of the 2024 e-invoice Rules.
No action — monitoring only. The 1 July 2025 and 1 January 2026 phase dates have passed; the final phase for annual sales of RM1 million or less was set at 1 July 2026.
The Income Tax (Issuance of Electronic Invoice) (Amendment) Rules 2025 [P.U.(A) 196/2025], made 24 June 2025, gazetted 26 June 2025 and in force from 30 June 2025, amended rule 2(1) of the Income Tax (Issuance of Electronic Invoice) Rules 2024 [P.U.(A) 265/2024] to split the final phase of the e-invoice rollout: businesses with annual sales of more than RM5 million but not exceeding RM25 million must issue e-invoices from 1 July 2025; those with annual sales of more than RM1 million but not exceeding RM5 million from 1 January 2026; and all other businesses (annual sales of RM1 million or less) from 1 July 2026.
What changed in detail
The Income Tax (Issuance of Electronic Invoice) (Amendment) Rules 2025 [P.U.(A) 196/2025] were made on 24 June 2025, gazetted on 26 June 2025 and came into operation on 30 June 2025. They amend rule 2(1) of the Income Tax (Issuance of Electronic Invoice) Rules 2024 [P.U.(A) 265/2024].
The 2024 Rules had a single final phase covering “all other businesses” from 1 July 2025. The amendment narrows paragraph (c) and inserts new paragraphs (d) and (e), so the final phase becomes three:
| Annual sales | E-invoice required from |
|---|---|
| More than RM5 million, up to RM25 million | 1 July 2025 |
| More than RM1 million, up to RM5 million | 1 January 2026 |
| All other businesses (RM1 million or less) | 1 July 2026 |
The two earlier phases, for annual sales above RM100 million and between RM25 million and RM100 million, are unchanged.
What it means
By November 2026 every date in this table has passed, so the amendment now reads as the end state of the statutory rollout. Note what it did not do: it added no turnover exemption. The exemption for small taxpayers is set in HASiL’s e-Invoice guideline, outside the Rules, and it has moved since. HASiL raised it to RM3 million in August 2026 and extended an interim relaxation to 31 December 2027 for taxpayers up to RM5 million. A business in the bottom two bands should read those records together with this one.
Proof
in relation to annual sales of more than one million ringgit but not exceeding five million ringgit, the electronic invoice shall be issued from 1 January 2026
Source snapshot of the official page. Open full size ↗Archived from the official distribution · P.U.(A) 196/2025 — Income Tax (Issuance of Electronic Invoice) (Amendment) Rules 2025 (Federal Government Gazette, 26 June 2025) · lom.agc.gov.my