Guideline for LHDN E-invoice
Here is what you need to know about the requirements:
Mandatory Compliance: Once your phase starts, all transactions (B2B, B2C, B2G) must be covered by an e-invoice.
LHDN allows voluntary adoption of e-Invoicing before your mandatory phase starts.
✔ You can issue e-invoices if:
- Your business turnover is below the current mandatory threshold, and
- You choose to adopt e-Invoicing early via:
i. MyInvois Portal, or
ii. API integration (e.g. through accounting software like Inxides)
Once you start issuing e-invoices:
- The invoice must follow full LHDN e-Invoice rules
- It will be validated by LHDN
- A UUID & QR code will be issued
- It becomes a legally recognised tax invoice
Important things to note ⚠️
1. Once issued as an e-invoice, it cannot be reverted
2. You cannot treat the same invoice as a normal PDF/manual invoice.
3. Consistency is recommended
4. LHDN strongly encourages consistent usage (don’t mix randomly).
Example: If you issue e-invoices to certain customers, keep the process consistent.
5. Credit / Debit Notes
Must also be issued as e-documents and linked to the original e-invoice.
6. Buyers can request e-invoice
Even if you’re not mandatory, a buyer may request an e-invoice from you.
Can I backdate the invoice for e-invoice?:
LHDN generally does not allow backdating e-invoices, requiring them to be issued on the transaction date or within a 3-day grace period.
Consolidated E-Invoicing Option: If you are dealing with customers who do not require a specific e-invoice (e.g., walk-in customers), you can issue a normal receipt first, and then combine those sales into a consolidated e-invoice at the end of the month. This must be submitted within 7 calendar days after the month-end.
Penalties for Non-compliance: Failure to issue e-invoices can result in fines ranging from RM200 to RM20,000, or imprisonment for up to 6 months, or both.
72-Hour Rule: If you make a mistake, you have a 72-hour window to cancel the invoice and issue a new one.
What if my business is small?
If your annual turnover is below RM1 million, you are exempt for now (until 1 July 2026), but if you voluntarily start using the system, you must comply with its rules.
What if I cannot issue an e-invoice for a transaction?
For certain scenarios where the seller cannot issue an invoice, a "self-billed e-invoice" must be issued by the buyer.
Disclaimer: E-invoice regulations in Malaysia have specific phases based on turnover, and there are interim relaxation periods (grace periods) where penalties may not be imposed for minor non-compliance during the first 6–12 months of your mandatory phase.