KUALA LUMPUR, Jan 5 — The Inland Revenue Board (LHDN) has announced that it will not impose penalties for any non-compliance with e-Invoicing requirements, provided taxpayers adhere to the prescribed regulations.
It acknowledges the commitment of taxpayers who need sufficient time to comply with the legal requirements of implementing e-Invoicing, particularly for micro, small, and medium enterprises (MSMEs).
“Accordingly, during the transition period from January 1, 2026, to December 31, 2026, taxpayers are allowed to issue consolidated e-Invoices for all activities and transactions, including for industries or activities listed under Section 3.7 of the e-Invoice Specific Guideline.
“The issuance of consolidated e-Invoices is also permitted even if there is a request for an e-Invoice from the buyer,” LHDN said in a statement today.
Earlier, Prime Minister Datuk Seri Anwar Ibrahim announced that the government has agreed to give taxpayers involved in Phase Four e-Invoicing a 12-month transition period starting on January 1, instead of the previously set six months.
The agency added that taxpayers may also issue consolidated self-billing e-Invoices for all self-billing scenarios, as outlined in Section 8.3 of the e-Invoice Specific Guideline.
It also allows any transaction descriptions to be included in the “Product or Service Description” field.
The government has also agreed to allow taxpayers in the wholesale and retail construction materials sector to issue consolidated e-Invoices starting January 1.
“With this permission, e-Invoices only need to be issued for transactions exceeding RM10,000, or when a buyer requests an e-Invoice.
“In line with the government’s decision above, it is hoped that taxpayers, particularly MSMEs, will have sufficient preparation time to implement e-Invoicing, while construction materials traders will not be burdened with the requirement to issue an e-Invoice for every transaction,” LHDN said.
