RM3 million in annual turnover or revenue, from 1 September 2026. LHDN raised it from RM1 million in version 4.8 of the e-Invoice General Guideline. Businesses below RM3 million do not have to issue e-invoices.
E-Invoice Threshold Checker
Do You Need to E-Invoice Yet?
Enter your annual turnover to see your LHDN e-invoice phase, your start date and when the relaxation period ends. Based on the RM3 million exemption, checked 21 October 2026.
You are exempt
Your turnover is below RM3 million, so you do not have to issue e-invoices. You can still choose to, and some B2B buyers will ask.
A guide based on LHDN's published rules, not tax advice. Confirm your position with your tax agent or the e-Invoice General Guideline.
E-Invoice Phases and the RM3 Million Exemption
LHDN e-Invoice General Guideline, version 4.8.
| Phase | Annual turnover or revenue | Mandatory from | Relaxation period ends |
|---|---|---|---|
| 1 | Above RM100 million | 1 August 2024 | 31 January 2025 |
| 2 | RM25 million to RM100 million | 1 January 2025 | 30 June 2025 |
| 3 | RM5 million to RM25 million | 1 July 2025 | 31 December 2025 |
| 4 | RM3 million to RM5 million | 1 January 2026 | 31 December 2027 |
| Exempt | Below RM3 million | Not required | Not applicable |
How the Threshold Works
The threshold is RM3 million
LHDN raised the e-invoice exemption threshold from RM1 million to RM3 million in annual turnover or revenue, effective 1 September 2026. Phase 4 originally covered businesses from RM1 million to RM5 million. The change took businesses between RM1 million and RM3 million out of the mandate.
Three rules that override your own turnover
- Group revenue counts. If a corporate shareholder, holding company, related company or joint venture partner has turnover of RM3 million or more, you are not exempt.
- 2022 decides your phase. A later rise or drop in turnover does not change it. Businesses whose 2022 turnover was RM1 million to RM3 million are now exempt.
- New and growing businesses have their own start dates. If you started trading recently or have just crossed RM3 million, check the guideline for the date that applies to you.
What the relaxation period allows
Each phase gets a relaxation period after its start date. During it, you can issue a consolidated e-invoice for transactions that would normally need an individual one, and LHDN has said it will not penalise non-compliance. Phase 4, for turnover from RM3 million to RM5 million, runs until 31 December 2027. Full enforcement starts on 1 January 2028.
Some transactions always need an individual e-invoice
Even when you consolidate, a buyer who asks for an e-invoice must get one, and LHDN requires individual e-invoices for single transactions above RM10,000 from 1 January 2026. The consolidated e-invoice guide lists the rest.
If you are exempt
Your normal invoices stay valid. Some businesses e-invoice anyway because their larger B2B customers prefer suppliers who can. If your turnover is growing towards RM3 million, getting your MyInvois login and testing in the sandbox now costs little and saves a rush later.
If you must e-invoice
A few e-invoices a month can go through the free MyInvois Portal. Online stores usually issue them from each order with a store app. O2O builds e-invoice integrations for Shopify, WooCommerce, OpenCart and Shopline that handle buyer requests, validation and monthly consolidation.
Sources
FAQ
E-Invoice Threshold Questions
LHDN uses annual turnover or revenue from your audited financial statements or, where there are none, your tax return. For the original phases this was the 2022 financial year. New businesses and businesses that grow past RM3 million have their own start dates in the guideline.
Yes. The exemption does not apply if a non-individual shareholder, holding company, related company or joint venture partner has turnover of RM3 million or more, even if your own turnover is lower.
Only if your 2022 turnover was below RM3 million. LHDN fixes your phase from 2022 figures, and a later drop does not take you out. Businesses whose 2022 turnover was between RM1 million and RM3 million were in Phase 4 until the threshold rose, and are now exempt unless a related company has RM3 million or more.
Failing to issue an e-invoice is an offence under Section 120 of the Income Tax Act 1967, with a fine of RM200 to RM20,000, up to six months in jail, or both, for each offence. LHDN does not penalise businesses during their relaxation period.
Need e-invoicing on your online store?
O2O connects Shopify, WooCommerce, OpenCart and Shopline stores to LHDN MyInvois.