E-Invoice Implementation for New Businesses in Malaysia [Issue 1 of 2]
In Malaysia, the implementation of e-invoicing is becoming an integral part of business operations for those meeting specific revenue thresholds. For new businesses starting operations between 2023 and 2025, understanding when and how to adopt e-invoicing is crucial to ensure compliance with local tax regulations. Below is a breakdown of the requirements for new businesses in these years, along with examples to guide them through the process.
E-Invoice Requirements for New Businesses
For businesses that commence operations in 2023, 2024, or 2025, there are clear guidelines on when e-invoice implementation is mandatory, depending on their annual turnover or revenue. Here’s what new businesses need to know:
1. Businesses with Annual Revenue Exceeding RM500,000
If a new business exceeds the RM500,000 annual revenue threshold in the years of assessment (YA) 2023, YA2024, or YA2025, it must implement e-invoicing starting from 1 July 2026. This is applicable even if the business only surpasses the RM500,000 revenue threshold in the YA 2025.
Example:
- Layang Warna Sdn Bhd: Incorporated on 1 October 2023, the company commenced operations and recorded an annual revenue of RM525,000 for the period of 1 October 2023 to 30 September 2024 (YA2024). Since the annual revenue exceeds RM500,000, Layang Warna Sdn Bhd must begin implementing e-invoices starting from 1 July 2026.
2. Exemption for Businesses Below RM500,000 in Annual Revenue
New businesses that record annual revenue below RM500,000 in YA2023, YA2024, or YA2025 may be exempt from e-invoice implementation, provided they continue to meet the exemption criteria.
Example:
- Pak Salleh: A new sole proprietor business that commenced on 1 January 2025. Pak Salleh records an annual revenue of RM185,000 in YA2025 (1 January to 31 December 2025). Since the annual revenue is below RM500,000, Pak Salleh is exempt from implementing e-invoices.
Stay tune for the upcoming newsletter, we will share with you more on e-Invoice.
