Malaysia e-Invoice (MyInvois) guide: the RM3 million exemption, phases and rules for shops
Malaysia's e-Invoice (e-Invois) system is run by LHDN (HASiL) through the MyInvois platform. From 1 September 2026 it covers businesses with turnover of RM3 million and above. This guide covers the phases, the new exemption, consolidated e-invoices for retail, and where MCPOS Cloud stands.
Quick answer
In Malaysia, a business in scope must send each e-invoice to LHDN's MyInvois system for validation. LHDN returns a unique ID and a QR code link the buyer can check. From 1 September 2026, businesses with annual turnover below RM3 million are exempt (group rules apply). Shops can give normal receipts to walk-in customers and submit one consolidated e-invoice for those sales each month.
MCPOS Cloud does not file with MyInvois yet. Our e-invoicing engine already files in Saudi Arabia and the UAE, and the MyInvois connector is being built on it. You can join early access.
Malaysia e-invoicing at a glance
| Tax authority | Inland Revenue Board of Malaysia — LHDN / HASiL |
|---|---|
| Platform | MyInvois — a free web portal, plus an API for business software |
| Model | Each e-invoice is validated by LHDN in near real time |
| Format | UBL 2.1 in XML or JSON, with a digital signature when sent by API |
| Exemption | Annual turnover or revenue below RM3 million, from 1 September 2026 (conditions apply) |
| Walk-in customers | A consolidated e-invoice for the month, within 7 days after the month ends |
| Cancel or reject | Within 72 hours of validation |
| Indirect tax | SST, not VAT — sales tax 5% or 10%, service tax 6% or 8% |
Timeline and who is covered
| Phase | Annual turnover or revenue | Start date |
|---|---|---|
| Phase 1 | Above RM100 million | 1 August 2024 |
| Phase 2 | RM25 million – RM100 million | 1 January 2025 |
| Phase 3 | RM5 million – RM25 million | 1 July 2025 |
| Phase 4 | RM3 million – RM5 million (after the 2026 change) | 1 January 2026 |
| Exempt | Below RM3 million | From 1 September 2026 (was below RM1 million) |
LHDN gave each phase a relaxation period to settle in. New businesses and group companies have their own rules — the exemption does not apply if a shareholder company, holding company or related company has turnover of RM3 million or more. Check the latest LHDN e-Invoice Guideline (version 4.8 at the time of writing).
How MyInvois works
- Your system creates the e-invoice with the supplier's and buyer's details, the items and the tax.
- It sends the e-invoice to MyInvois — by API from your software, or by typing it into the MyInvois Portal.
- LHDN checks it and returns a Unique Identifier Number (UIN) and a validation link.
- You share the validated e-invoice with the buyer, with a QR code that opens the validation link.
- For 72 hours, the buyer can ask to reject it and you can cancel it. After that, fix mistakes with a credit or debit note.
Consolidated e-invoices — the rule that matters for shops and restaurants
Most walk-in customers do not want an e-invoice. So LHDN lets retailers give a normal receipt at the counter and submit one consolidated e-invoice that covers all those sales, within 7 days after the month ends.
- The consolidated e-invoice uses the general public TIN EI00000000010 as the buyer.
- If a customer asks for an e-invoice (for example, to claim it as a business expense), issue them their own e-invoice, and leave that sale out of the consolidated one.
- A few businesses cannot consolidate — for example car sales, aviation, luxury goods and jewellery, and construction materials. They must issue an e-invoice for every sale.
What goes on a Malaysian e-invoice
- Supplier: name, TIN, business registration number, SST number (if registered), MSIC code, business activity, address and contact number.
- Buyer: name, TIN, registration or ID number, SST number, address and contact number.
- Invoice: type, number, date and time, currency, and a reference to the original invoice for credit and debit notes.
- Items: classification code, description, quantity, unit price, discount, tax type, tax rate and tax amount.
- Totals: total before tax, total tax and total payable.
There are also self-billed e-invoices, which the buyer issues instead of the seller — for example for agents' commissions or purchases from foreign suppliers.
Penalties
Not issuing an e-invoice when you must is an offence under the Income Tax Act 1967. The fine is RM200 to RM20,000, or jail of up to six months, or both — for each offence. Each phase got a relaxation period to settle in, but it does not last forever.
Checklist to get ready
- Work out your turnover band and start date, including any group company rules.
- Collect TINs and registration numbers from your B2B customers and suppliers.
- Map your products to the LHDN classification codes and your SST tax types.
- Decide: MyInvois Portal by hand, an API connection, or a service provider.
- Plan the monthly consolidated e-invoice for walk-in sales.
Where MCPOS Cloud stands in Malaysia Coming to MCPOS Cloud
MCPOS Cloud has one e-invoicing engine with a connector for each tax authority. The Saudi (ZATCA) connector files live and the UAE connector is built. The MyInvois connector is in development and is not live yet. Here is what you get today, and what the connector will add.
SST billing today
Set your sales tax and service tax rates, show tax per line, and print proper invoices and receipts on thermal or A4 paper.
Offline billing today
Tills bill with no internet and sync later — useful in malls and outstation branches.
Sales history line by line
Every sale is kept with its lines and taxes, which is exactly what a monthly consolidated e-invoice is built from.
Accounting today
Sales, purchases, stock and tax post to full double-entry accounts, with tax reports.
Coming: MyInvois by API
Signed e-invoices sent to MyInvois automatically, with the UIN and validation QR on the receipt.
Coming: monthly consolidation
One consolidated e-invoice for walk-in sales, built from the month's receipts, leaving out sales that already had their own e-invoice.
How to get early access
- Start free on MCPOS Cloud and set up your products and SST rates.
- Tell us your phase. Contact us with your turnover band and whether you already use MyInvois.
- We switch it on for you first when the MyInvois connector is ready, and help you test it in LHDN's pre-production system.
Until the connector is live, a business that must issue e-invoices today should use the MyInvois Portal or an e-invoice service provider alongside MCPOS. If your turnover is below RM3 million, you are exempt and MCPOS covers your billing.
Malaysia e-invoicing — frequently asked questions
Who must issue e-invoices in Malaysia in 2026?
Businesses with annual turnover or revenue of RM3 million and above, joined in phases since 1 August 2024. The last group, now RM3 million to RM5 million, started on 1 January 2026. From 1 September 2026, businesses below RM3 million are exempt, unless group company rules apply.
What is the RM3 million e-invoice exemption?
From 1 September 2026, LHDN raised the e-invoice exemption threshold from RM1 million to RM3 million of annual turnover or revenue. The exemption does not apply if a non-individual shareholder, holding company, related company or joint venture has turnover of RM3 million or more.
Do I need to give an e-invoice to every walk-in customer?
No. Retailers can give a normal receipt and submit one consolidated e-invoice for those sales within 7 days after the month ends. If a customer asks for an e-invoice, issue one for that sale.
What is MyInvois?
MyInvois is LHDN's e-invoicing system. Businesses submit e-invoices through the MyInvois Portal or by API, LHDN validates them and returns a Unique Identifier Number and a validation link shown as a QR code.
What TIN goes on a consolidated e-invoice?
The general public TIN, EI00000000010, is used as the buyer TIN on a consolidated e-invoice for walk-in customers.
How long do I have to cancel an e-invoice?
You can cancel a validated e-invoice, and the buyer can ask to reject it, within 72 hours of validation. After that, corrections are made with a credit note or debit note.
Does MCPOS Cloud support MyInvois today?
Not yet. The MyInvois connector is being built on the same e-invoicing engine that already files in Saudi Arabia and the UAE. MCPOS handles SST billing, offline sales and accounting today. Contact us to join early access.
Is e-invoicing in Malaysia the same as SST?
No. SST is the sales and service tax. E-invoicing is about how invoices are issued and validated by LHDN, and it applies to income tax records whether or not you are SST-registered.
Get MyInvois in MCPOS first
Start billing free today — offline tills, tax invoices, stock and accounting. Tell us about your business and we will switch the MyInvois connector on for you as soon as it is ready.
Join early access Start freeSources
Facts checked on 29 September 2026. Tax rules change — always confirm with the tax authority or your tax adviser before you act.
E-invoicing in other countries
One e-invoicing engine, one connector per country. See them all on e-invoicing software by country, or jump to one: