Exempt from e-Invoice? What you still need to issue

The short answer

Question	Answer	Source
Who is exempt?	Taxpayers with annual turnover or revenue below RM3,000,000	Guideline 1.6.1(e)
Which kinds of business?	All categories: individuals, partnerships, companies, co-operatives and so on	Guideline 1.6.10
Self-billed or consolidated e-Invoices?	Not required either	Guideline 1.6.1; FAQ 105
Do I apply to HASiL?	No application or prior approval is needed	FAQ 17, 18
Already issuing e-Invoices?	You may stop immediately, or continue voluntarily	FAQ 18–20
What proves the expense for my customer?	Your receipts and existing documents	Guideline 1.6.2

Who is not covered

Turnover alone does not decide it. Under Guideline 1.6.10, the exemption does not apply if:

1. you have a non-individual shareholder (or equivalent) with annual turnover or revenue of at least RM3 million;
2. you are a subsidiary of a holding company with annual turnover or revenue of at least RM3 million; or
3. you have a related company or joint venture with annual turnover or revenue of at least RM3 million.

HASiL's FAQs add some practical points:

• Related companies: a company holding at least 20% of another company's issued share capital, or controlling its operations, makes the companies related for e-Invoice purposes. Two companies owned by the same individual are not related for that reason alone, and neither is a shared director who holds no shares (FAQ 103).
• Sole proprietors: all sole-proprietorship businesses registered under your name are added together when checking the RM3 million threshold (FAQ 102).
• Online marketplaces: for sales on a local e-commerce platform, the platform provider issues the e-Invoice, but you still need to give it your details (FAQ 106, 110).

When the exemption ends

If your annual turnover or revenue reaches RM3 million in a year of assessment, you must start issuing e-Invoices from 1 January of the second year after that year (FAQ 100). For example, reaching RM3 million in YA2027 means e-Invoice from 1 January 2029 (FAQ 13).

Turnover is taken from the statement of comprehensive income in your audited financial statements or, without audited accounts, the revenue reported in your tax return (FAQ 101). Once you are required to issue e-Invoices, falling back below RM3 million later does not restore the exemption (FAQ 104).

Examples from HASiL's FAQs

Situation	Result
Sole proprietor with RM2.9 million in YA2022 (and below RM3 million since) who has not issued e-Invoices since January 2026	Exempt; no e-Invoice compliance action or penalty (FAQ 15)
Business with RM2 million revenue that started issuing e-Invoices on 1 July 2026	May stop immediately; no application needed (FAQ 18)
Company with RM400,000 revenue that is a subsidiary of a company already implementing e-Invoice	Not exempt; e-Invoice from 1 July 2026 (FAQ 99)
Sole proprietor whose revenue reaches RM3.17 million in YA2027	e-Invoice from 1 January 2029 (FAQ 13)

What you still need to issue

The exemption covers the e-Invoice: the XML or JSON file validated through HASiL's MyInvois system. It does not remove ordinary business documents.

• Your invoices and receipts are your customer's proof of expense. Guideline 1.6.2 says that, for tax purposes, the receipts and existing documents issued by exempt persons are used as proof of expense. A complete, clearly numbered document saves your customer trouble at tax time.
• Serially numbered receipts above RM150,000. HASiL's FAQs note that businesses with annual gross takings above RM150,000 for goods sold or services performed must issue serially numbered receipts for all transactions, under section 82(1)(b) of the Income Tax Act 1967 (FAQ 109).
• Keep copies. Keep every invoice and receipt you issue with its payment record, so you can answer questions from customers, your accountant or HASiL.

A larger customer may ask you for an e-Invoice. HASiL's FAQs say businesses that already use e-Invoice cannot compel suppliers who have not reached their own mandatory timeline to issue one (FAQ 107). If you want to help a customer anyway, you can take part voluntarily; HASiL provides the MyInvois Portal and MyInvois app free (FAQ 111).

What a clear ordinary invoice shows

• The document title (Invoice or Receipt) and a unique serial number
• The date, and a due date for invoices
• Your business name, address and registration number
• Your customer's full name
• A description, quantity and price for each line, and the total
• Tax on its own line, only if you are SST-registered
• How to pay, or how much was received

The invoice template guide covers numbering and layout, and the SST invoice format guide covers the extra details for SST-registered businesses.

Common questions

Do I need to apply to HASiL for the e-Invoice exemption?

No. HASiL's General FAQs say no separate application or prior approval is required for taxpayers who are eligible for the exemption.

I already started issuing e-Invoices. Can I stop?

Yes. If your annual turnover or revenue is below RM3 million and none of the exceptions applies, HASiL's FAQs say you may stop issuing e-Invoices immediately, or continue voluntarily.

Will I be penalised for not issuing e-Invoices since January 2026?

If you are eligible for the exemption, HASiL's FAQs say no e-Invoice compliance action or penalty will be imposed.

Do I still need to give customers receipts?

Yes. The e-Invoice Guideline says receipts and existing documents issued by exempt persons are used as proof of expense, and HASiL's FAQs note that businesses with annual gross takings above RM150,000 must issue serially numbered receipts.

Does InvoisLaju submit e-Invoices to MyInvois?

No. InvoisLaju makes ordinary invoices, quotations, receipts and credit notes as PDFs. If you are required to issue e-Invoices, or choose to, use the MyInvois Portal or a system connected to MyInvois.

Sources

• HASiL, e-Invoice Guideline (Version 4.8), 30 August 2026: sections 1.5, 1.6.1, 1.6.2, 1.6.8 and 1.6.10.
• HASiL, e-Invoice General FAQs, updated 4 September 2026: questions 13, 15, 17–20 and 99–111.

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