Top 10 e-Invoice Questions Malaysian Businesses Ask

It depends on your annual turnover and the LHDN rollout phase. The mandate is being implemented in stages:

• Phase 1 (Aug 2024): Turnover above RM100 million
• Phase 2 (Jan 2025): Turnover RM25M – RM100M
• Phase 3 (Jul 2025): Turnover RM5M – RM25M
• Phase 4 (Jan 2026): Turnover RM1M – RM5M

Businesses with annual turnover below RM1 million are currently exempt from the mandate, but voluntary adoption is encouraged. If your turnover falls within Phase 4, you should already be compliant as of January 2026.

Non-compliance carries serious consequences. Under Malaysian tax law, businesses that fail to comply with e-Invoice requirements can face fines of up to RM50,000 or imprisonment of up to 2 years, or both. Beyond legal penalties, non-compliant invoices may not be accepted as valid tax deductions, which could increase your tax liability. It is strongly recommended to start your compliance journey well before your mandatory deadline.

No, you do not need to replace your existing accounting software. Middleware solutions like JomeInvoice act as a bridge between your current system and LHDN's MyInvois portal. Whether you use SQL Accounting, AutoCount, Xero, QuickBooks, SAP, Odoo, or even Excel-based workflows, JomeInvoice integrates seamlessly — so your team keeps working the way they already do.

Costs vary depending on the solution you choose and the size of your business. Some providers charge per transaction, while others offer flat monthly subscriptions. JomeInvoice offers plans starting from RM30/month, making it one of the most affordable options for Malaysian SMEs. There are no hidden setup fees, and you can scale as your business grows.

Under LHDN's e-Invoice framework, the following document types must be submitted electronically:

• Invoices — standard sales invoices
• Credit notes — for adjustments and refunds
• Debit notes — for additional charges
• Refund notes — for returned goods or cancelled services
• Self-billed invoices — issued by the buyer on behalf of the seller

Each of these must be submitted to LHDN's MyInvois system for validation and record-keeping.

Yes, you can continue issuing paper invoices to your customers. However, the invoice must also be submitted electronically to LHDN via the MyInvois system for validation. Think of it this way: the paper copy is what your customer receives, while the e-Invoice is the official digital record filed with LHDN. Both exist side by side — the e-Invoice requirement does not eliminate paper, it adds a digital compliance layer.

MyInvois is LHDN's official e-Invoice portal, accessible at myinvois.hasil.gov.my. It is the central platform where all e-Invoices are submitted, validated, and stored. Businesses can submit invoices directly through the portal's web interface, or connect via API through certified middleware providers like JomeInvoice for automated, high-volume submission.

LHDN requires businesses to retain e-Invoice records for at least 7 years. This applies to all submitted invoices, credit notes, debit notes, and related documents. Using a cloud-based solution like JomeInvoice ensures your records are securely stored and easily retrievable for audits or tax assessments, without you having to manage physical or local digital storage.

A TIN (Tax Identification Number) is a unique identifier assigned by LHDN to every taxpayer in Malaysia. Yes, all businesses participating in the e-Invoice system must have a TIN. If your business does not yet have one, you can register through LHDN's e-Daftar system. Your TIN is essential for submitting e-Invoices through MyInvois.

Getting started is simpler than most business owners expect. Follow these three steps:

1. Register on MyInvois — Visit myinvois.hasil.gov.my and register your business. You will need your TIN and business registration details.
2. Choose an e-Invoice solution — Middleware like JomeInvoice connects to your existing accounting software and handles the technical integration with LHDN, so you don't have to build anything yourself.
3. Start submitting — Once set up, your invoices are automatically formatted and submitted to LHDN in real time. You will receive validation confirmations for every submission.

The entire setup process typically takes less than a day with JomeInvoice.