Turnover below RM3 million? You are exempt — threshold raised twice, most guides are stale

In December 2025, Malaysia's Cabinet raised the e-invoice exemption threshold: businesses with annual turnover below RM1 million are exempt (previously RM500,000), effective January 1, 2026. Many older guides still show the RM500k figure. If you're near the line, track your turnover carefully — crossing RM1M pulls you into the mandate. UPDATE (30 August 2026): LHDN's e-Invoice Guideline Version 4.8 raised the exemption threshold again, from RM1 million to RM3 million of annual turnover or revenue, including for self-billed e-invoices. Many businesses pulled into the mandate in January 2026 may now fall back out of it. Two important catches. First, this is not a simple size test — see rule MY-010 for the group and ownership conditions. Second, if you have already started issuing e-invoices, do not switch them off: Version 4.8 does not say whether a business whose start date has passed may stop, so keep issuing until LHDN clarifies. Version 4.8 also revised the rules for newer businesses: an operation that started between 2023 and 2025 must implement from 1 July 2026 only if turnover reaches RM3 million.

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