Phase-by-Phase E-Invoice Deadlines: Which Category Does Your Business Fall Under?
Malaysia has introduced a phased rollout for mandatory e-Invoicing (MyInvois system), based on annual business turnover. Here’s an updated, easy-to-follow guide for SMEs and enterprises.
E-Invoice Implementation Timeline in Malaysia
| Phase | Turnover Range (RM) | Mandatory From | Grace Period |
|---|---|---|---|
| 1 | > 100 million | 1 August 2024 | 6 months |
| 2 | 25 – 100 million | 1 January 2025 | 6 months |
| 3 | 5 – 25 million | 1 July 2025 | 6 months |
| 4 | 1 – 5 million | 1 January 2026 | 6 months |
| 5 | Up to 1 million | 1 July 2026 | 6 months |
Source: LHDN implementation guidelines (HASiL)
Why This Matters
Even though the grace periods offer extra time, preparation is critical. Here’s why being early matters:
- Avoid Last-Minute Compliance Rush: Integration, training, and system testing take time.
- Apply for SME Grants: Remember, eligible SMEs can apply for digitalisation funding to ease software costs.
- Prevent Penalties: The grace period ends after 6 months—non-compliance could lead to fines.
What Should You Do Next?
- Identify your turnover bracket and its phase
- Select your submission method — MyInvois Portal or API
- Integrate e-Invoice (AutoCount supports API trade submission)
- Train your staff & run tests
- Monitor regularly to ensure invoices are validated properly
Why Accurate e-Invoicing Matters
- Reduced DSO (Days Sales Outstanding) — faster validations, faster payments
- Greater accuracy — modern lawmakers ask for structured data (XML/JSON)
- Aligns with national digitisation goals and tax transparency
Final Thoughts
Use the timeline above to plan ahead — whether your business is in Phase 3 or Phase 5. The key is early action.
Need help with MyInvois integration, grant applications, or AutoCount software setup? Contact us or check out our Cloud Accounting with built-in e-Invoice at AutoCount Cloud Accounting.
Let’s ensure you’re fully compliant and ready for Malaysia’s digital future.
