KUALA LUMPUR, Jan 5 —Mandatory e-invoicing for companies with annual sales of between RM1 million and RM5 million, originally scheduled to take effect from January 1, 2026, has been extended by a year without any penalty being imposed.
Prime Minister Datuk Seri Anwar Ibrahim said the government decided to postpone it because some companies are not yet ready due to the high cost of implementing e-invoicing.
“The government has agreed to extend the penalty-free transition period for e-invoicing for another year, as many have said the cost is too high,” he said in his 2026 New Year's Address today.
Anwar, who is also the Finance Minister, said the government has also expanded sectors allowed to issue consolidated e-invoices to include retail and building materials.
Meanwhile, the government has also agreed to implement a voluntary disclosure programme for stamp duties for six months, from January 1 to June 30, 2026.
The implementation of e-invoicing began on August 1, 2024, and on January 1 this year, Malaysia entered the fourth phase of e-invoicing implementation as part of the government’s efforts to strengthen tax administration while easing compliance burden on small and medium enterprises.
Introduced as a digital platform to streamline invoicing and improve tax compliance, e-invoicing requires businesses to generate and submit invoices electronically, enhancing reporting and tax collection efficiency while reducing leakage.
