APAC · LHDN (Inland Revenue Board) / MyInvois
Malaysia
Atlas data current as of
Centralised clearance (MyInvois) plus API and Peppol channels under LHDN. The mandatory threshold was raised from RM1M to RM3M annual turnover effective 1 Sep 2026 (PM announcement, National Day 2026; codified in LHDN e-Invoice Guideline v4.8, 30 Aug 2026) — taking an estimated 1.1 million MSMEs out of scope. Phase 4 now effectively covers RM3M-RM5M; penalty-free relaxation runs to 31 Dec 2027 and full enforcement begins 1 Jan 2028. Phase 5 was cancelled (Cabinet, 6 Dec 2025). RM10,000 individual-invoice rule strictly enforced during relaxation. 55 mandatory fields, 72-hour cancel/reject window.
Cloudare has shipped 8 🇲🇾 Malaysia integrations · talk to us →// Phased rollout
- 01 Aug 2024 · livePhase 1 — Large taxpayersAnnual turnover > RM100 million. Mandatory e-invoicing via MyInvois.Turnover > RM100M
- 01 Jan 2025 · livePhase 2 — Upper mid-marketAnnual turnover RM25M - RM100M.Turnover RM25M - RM100M
- 01 Jul 2025 · livePhase 3 — Mid-marketAnnual turnover RM5M - RM25M.Turnover RM5M - RM25M
- 01 Jan 2026 · livePhase 4 — SMEsOriginally RM1M-RM5M turnover from 1 Jan 2026. Narrowed to RM3M-RM5M from 1 Sep 2026 when the exemption threshold rose to RM3M. Penalty-free relaxation applies until 31 Dec 2027.Turnover RM3M - RM5M (RM1M - RM5M before 1 Sep 2026)
- 01 Sept 2026 · liveExemption threshold raised to RM3MMandatory e-Invoice threshold raised from RM1M to RM3M annual turnover. MSMEs below RM3M are permanently exempt. LHDN e-Invoice Guideline v4.8 (30 Aug 2026).Turnover < RM3M exempt
- 31 Dec 2027 · upcomingPhase 4 relaxation endsPenalty-free relaxation period ends. Extended by 12 months (PM Anwar Ibrahim announcement, Apr 2026) — codified in LHDN e-Invoice Specific Guideline v4.7.
- 01 Jan 2028 · upcomingFull enforcement beginsSection 120 penalties (RM200-20,000 per non-compliant invoice) apply to all Phase 4 businesses.
// Penalties
RM 200 to RM 20,000 per offence under Income Tax Act §120(1)(d); imprisonment up to 6 months possible.
// What you have to do
- Confirm which of your flows are in scopeB2B is phased, B2G is phased, B2C is phased.
- Emit one of UBL 2.1 (MyInvois) or JSON (MyInvois)Your ERP must produce this syntax, not a PDF or a print stream.
- Connect via MyInvois Portal (web/UI) or MyInvois APIThis is the channel, separate from the format. Most projects underestimate it.
- Plan for the Clearance modelThe regulator validates before the invoice is legally issued, so a rejection blocks the sale. Build the rejection path first.
- Retain for 7 yearsArchive the structured original, not a rendering of it.
- Understand the exposureRM 200 to RM 20,000 per offence under Income Tax Act §120(1)(d); imprisonment up to 6 months possible.
// ERP implementation notes
SAP S/4HANA (incl. DRC) & SAP ECC
SAP DRC Malaysia: MY_INVOICE eDocument; UBL 2.1 MyInvois output; OAuth client credentials to MyInvois API.
Microsoft Dynamics 365 (F&O + Business Central)
D365 F&O Malaysia ER configuration for MyInvois with Electronic invoicing service.
Oracle Fusion Cloud ERP
Oracle Fusion MY localisation + Avalara/Sovos/Pagero MyInvois connector.
Odoo (Community + Enterprise)
l10n_my_edi + l10n_my_edi_extended supports UBL 2.1 MyInvois submission.
// Implementation playbook
Cloudare has shipped 8 Malaysia integrations. We will email you the full implementation playbook for Malaysia — typical project plan, ERP-by-ERP gotchas, regulator-specific edge cases, sample test data. No marketing.
// Frequently asked questions
What's the current MyInvois phase and threshold?
LHDN's MyInvois rollout has been phased by annual turnover: Phase 1 (>RM 100M) live since August 2024, Phase 2 (RM 25M-100M) from January 2025, Phase 3 (RM 500K-25M) from July 2025. Phase 4 covering all remaining taxpayers (including under RM 500K) is the current focus through 2026.
MyInvois JSON or PINT-MY — which one do we send?
MyInvois JSON is the primary submission format for B2B / B2G / B2C domestic transactions. PINT-MY (the Peppol variant) is required for inbound and outbound cross-border invoices via the Peppol network. Most businesses need both flows — they're not interchangeable.
What's the 72-hour validation window?
After submission, LHDN returns a UUID and validated status. The supplier and buyer each have 72 hours to cancel or reject. After 72 hours, the invoice is final — corrections require a credit/debit note that itself goes through MyInvois. Build the buyer-side rejection workflow into your AR/AP processes.
Which ERPs have native MyInvois connectors?
SAP DRC supports MyInvois from the 2024 release. Oracle Fusion via Tax Reporting Cloud + IRBM connector. Microsoft Dynamics 365 F&O has a localisation pack. Zoho Books, Odoo, and Xero have native modules. SAP ECC needs third-party middleware (Cygnet, Cleartax MY, etc.) — same vendors who do Indian IRP.
How does the MyInvois consolidation work for B2C?
Daily aggregated B2C invoices can be reported as a single consolidated document covering all retail transactions for the day, instead of per-receipt. This is the standard pattern for retail / F&B / e-commerce. Schema is the same MyInvois JSON, with a consolidated invoice type and aggregate amounts.
Are there penalties for late MyInvois submission?
LHDN's published penalty schedule starts at RM 200 per invoice and escalates. More material: late or missing e-invoices invalidate input tax claims for the buyer, which creates downstream pressure to fix supplier-side issues fast.
What's the archive requirement?
7 years from end of accounting period, consistent with Malaysia's existing tax record-keeping rules. Storage must preserve the original MyInvois JSON + LHDN's validation response. The portal makes records available for audit retrieval.