Malaysia E-Invoice: Extension of Interim Relaxation Period
Based on the HASiL Media Release dated 5 January 2026, the Inland Revenue Board of Malaysia (“IRBM”) announced administrative measures to facilitate the implementation of Phase 4 e-Invoicing, effective 1 January 2026. These measures aim to ease compliance for Micro, Small and Medium Enterprises (MSMEs) by providing an extended interim relaxation period and introducing practical flexibilities in e-Invoice issuance.
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Extension of Interim Relaxation Period
Following our previous publication on this matter at
https://www.kaizencpa.com/Knowledge/info/id/2043.html, there is an update on the interim relaxation period. Taxpayers subject to Phase 4 e-Invoicing will benefit from a 12-month interim relaxation period, replacing the previously stipulated six months. Changes are highlighted in blue.
The interim relaxation period is as follows:
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No
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Targeted Taxpayers
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Interim Relaxation Period
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1.
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Taxpayers with an annual
turnover or revenue of more than RM100 million
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1 August 2024 to 31 January
2025
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2.
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Taxpayers with an annual
turnover or revenue of more than RM25 million and up to RM100 million
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1 January 2025 to 30 June 2025
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3.
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Taxpayers with an annual
turnover or revenue of more than RM5 million and up to RM25 million
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1 July 2025 to 31 December 2025
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4.
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Taxpayers with an annual
turnover or revenue of up to RM5 million – 1 January 2026 implementation date
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1 January 2026 to 31 December 2026
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5.
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Taxpayers with an annual
turnover or revenue of up to RM5 million – 1 July 2026 implementation date
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1 July 2026 to 31 December 2026
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Interim Relaxation Compliance Flexibilities
During the interim relaxation period, taxpayers may adopt the following flexibilities:
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Issuance of consolidated e-Invoices are allowed for all activities and transactions, including industries listed under Section 3.7 of the e-Invoicing Specific Guidelines. Consolidated e-Invoices are permitted even if a buyer requests an individual e-Invoice.
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Issuance of consolidated self-billing e-Invoices are permitted for all self-billing scenarios under Section 8.3 of the e-Invoicing Specific Guidelines.
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Taxpayers may enter any transaction description in the “Product or Service Description” field.
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Penalty Relief
No penalties will be imposed for non-compliance with e-Invoicing requirements during the interim relaxation period, provided taxpayers comply with the regulations stated in Point 2 above.
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Special Concessions for Construction Materials Traders
Taxpayers in the wholesale and retail construction materials sector are granted additional relief:
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Consolidated e-Invoices are allowed.
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E-Invoices are only required when a transaction exceeds RM10,000 or when requested by the buyer.
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This concession recognises the high-volume, low-value nature of transactions in this sector and reduces the administrative burden while maintaining compliance for higher-value sales.
For further information, please visit the official website of the Inland Revenue Board of Malaysia at
https://www.hasil.gov.my/en
KAIZEN Group, together with its associate firms in Malaysia, can help the clients to perform these compliances formalities so as to maintain the Malaysia company in good standing. Please call and talk to our professional accountants in Kaizen for further clarification.
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