The MyInvois RM3 million exemption: who still needs e-Invoices

Malaysia rolled out e-invoicing through MyInvois in phases from 2024. In August 2026, LHDN's e-Invoice Guideline version 4.8 tripled the exemption threshold to RM3 million: most small businesses don't have to issue e-Invoices at all.

If yours is one of them, the free Malaysian invoice generator makes the PDF invoices you need.

Who is exempt

Taxpayers of every kind — individuals, sole proprietors, partnerships, companies, LLPs and co-operatives — with annual turnover or revenue below RM3 million are exempt from issuing e-Invoices, including self-billed ones. Their ordinary invoices and receipts, on paper or as PDFs, remain valid proof of expense for their customers.

When the exemption doesn't apply

Section 1.6 of the guideline adds three group rules. You're not exempt, whatever your own revenue, if:

1. a non-individual shareholder of yours (a company that owns shares in you) has annual revenue of RM3 million or more;
2. you're a subsidiary of a holding company with annual revenue of RM3 million or more; or
3. you have a related company or joint venture with annual revenue of RM3 million or more.

These stop large groups from splitting off small companies to avoid e-invoicing. Invoice Native shows the same check in the editor; the MyInvois exemption checker runs it on its own.

When you grow past RM3 million

If your annual revenue reaches RM3 million, you must start e-invoicing from 1 January of the second year after that year. A business that reaches RM3 million in 2026 starts on 1 January 2028. That gives time to choose a MyInvois-capable system.

What an exempt business's invoice shows

Being exempt from e-invoicing doesn't change the invoicing rules you already follow:

• your name, address and SSM registration number;
• your customer's name and address;
• a number and date, what you supplied and the amount;
• if you're registered for SST, your SST number and the tax at each rate — see SST invoice requirements.

A worked example

Sri Kembangan Studio, a sole proprietorship billing RM400,000 a year with no company shareholders, is exempt: it sends PDF invoices. Its friend's design firm, a Sdn. Bhd. billing RM900,000 but 60% owned by a holding company with RM20 million of revenue, isn't exempt under the group rule and must issue e-Invoices through MyInvois.

Businesses that had already started

Some businesses with revenue between RM1 million and RM3 million started e-invoicing under the earlier RM1 million threshold. LHDN's FAQs of 4 September 2026 say they may stop without applying or getting approval. Many keep going because their customers' systems expect e-Invoices; the choice is theirs.

If you're not exempt

A PDF isn't an e-Invoice. You'll need a system that submits invoices to MyInvois for validation — LHDN's free MyInvois Portal, accounting software with MyInvois, or a service provider. You can still use Invoice Native for quotations, statements and proforma invoices.

What "revenue" means here

The test is your annual turnover or revenue — the figure in your financial statements, or for individuals and sole proprietors the gross business income in your tax return. It isn't profit, and it isn't just your taxable sales for SST. For a new business, LHDN looks at its expected revenue.

Buyers who ask for e-Invoices

Some larger customers prefer e-Invoices because their own systems process them automatically. If you're exempt, you can still offer them a PDF invoice; LHDN's guideline confirms it's valid proof of expense. If a customer insists, you can choose to use the MyInvois Portal voluntarily.

Self-billed invoices and imports

The exemption also covers self-billed e-Invoices — the ones a buyer issues on behalf of a seller, such as for purchases from individuals or overseas suppliers. An exempt business doesn't have to issue those either; it keeps the ordinary documents it receives as its records.

Keeping an eye on it

Check your position each year: your revenue, and your shareholders' and group companies'. Signed-in Invoice Native businesses see their invoiced revenue on the dashboard, so it's easy to tell when RM3 million is getting close.