I earn less than RM150,000 a year — do I still need to issue e-invoices?

No, businesses earning under RM150,000 annual revenue are currently exempt from issuing e-invoices. You can keep using regular PDF invoices. If a customer that's mandate-bound asks for your TIN, give it to them — they may issue a self-billed e-invoice on your behalf for their tax records.

When does e-invoice become mandatory for freelancers in Malaysia?

If your annual revenue from freelancing is between RM150,000 and RM1 million, the mandate applies from 1 July 2026. Below RM150,000, you're exempt. Most full-time freelancers in design, web development, and consulting fall into the RM150K–RM1M band, so plan to be ready by mid-2026.

What's the difference between an invoice and an e-invoice?

A regular invoice is a document you create and send directly to your buyer (PDF, paper, Excel). An e-invoice is the same document submitted to LHDN's MyInvois system first, validated, stamped with a UIN and QR code, then shared with your buyer. The data is the same; the workflow adds a government validation step.

Can I issue e-invoices through Invoice DIY today?

Invoice DIY today generates LHDN-compliant PDF invoices with all the required fields (TIN, SSM, multi-tax, sequential numbering). Direct MyInvois XML/JSON submission is on our Pro roadmap and will release alongside the Phase 4–5 rollout dates. For now, you can use Invoice DIY to draft and keep records, then submit through the MyInvois Portal.

What if the buyer rejects my e-invoice?

Buyers have a 72-hour window after validation to reject. Common rejection reasons are wrong TIN, wrong amount, or wrong item description. If rejected within 72 hours, the e-invoice is cancelled and you can re-submit a corrected one. If rejected after 72 hours, you'll need to issue a credit note plus a new invoice.

Do I need an SSM business registration to issue e-invoices?

Yes for businesses, no for sole-proprietor freelancers using their personal TIN. If you're operating under a registered sole proprietorship (Perniagaan), SSM registration is required. Casual freelancing using your own name typically uses your individual TIN tied to your IC — but check with LHDN if you're unsure about your specific situation.

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Malaysia compliance guide

LHDN e-Invoice Malaysia — What SMBs and Freelancers Need to Know

Malaysia's Inland Revenue Board (LHDN) is rolling out mandatory electronic invoicing in phases through 2024–2026. By 1 July 2026, almost every business and freelancer earning over RM150,000 a year must issue e-invoices through the MyInvois system. This guide explains who's affected, what an e-invoice actually contains, how to submit one, and what you can do today to be ready.

Create a compliant invoice now →Skip to the rollout dates

Section 1

What is an LHDN e-invoice?

An LHDN e-invoice is a structured digital document submitted to the government's MyInvois system before it reaches your buyer. Unlike a regular PDF, the e-invoice is validated by LHDN in near real-time, assigned a Unique Identifier Number (UIN), and stamped with a QR code that proves the buyer's copy is genuine. It replaces traditional paper or PDF-only invoicing for tax purposes. Every transaction that needs to be reported to LHDN — sales, purchases, refunds, expense claims — eventually flows through this system. For SMBs, the practical change is: you don't just create an invoice and send it. You create it, submit it to MyInvois, wait for validation, then share the validated copy with your buyer.

Section 2

Who must comply, and when

LHDN is rolling out the mandate in phases based on annual turnover. The threshold drops each phase, eventually covering almost every registered business in Malaysia.

1 Aug 2024
Annual revenue > RM100 million
Phase 1 — largest enterprises. Already live.
1 Jan 2025
Annual revenue RM25 million – RM100 million
Phase 2 — mid-large companies.
1 Jul 2025
Annual revenue RM5 million – RM25 million
Phase 3 — mid-sized SMBs.
1 Jan 2026
Annual revenue RM1 million – RM5 million
Phase 4 — smaller SMBs.
1 Jul 2026
Annual revenue RM150,000 – RM1 million
Phase 5 — most freelancers, sole proprietors, and micro-businesses fall here.

Businesses with annual revenue under RM150,000 are exempt from issuing e-invoices themselves. They can still receive e-invoices from suppliers and should keep records. If your buyer is mandate-bound but you aren't, your buyer may issue a self-billed e-invoice on your behalf — keep your TIN handy.

Quick check

Which phase applies to you?

Enter your annual revenue in MYR — we'll tell you which phase you fall into and when the mandate starts.

Section 3

What an LHDN e-invoice must contain

LHDN specifies around 55 data fields, but most are auto-filled from your profile or item catalogue. The fields you need to enter for each transaction:

Supplier identification: Your name (or company name), TIN (Tax Identification Number), SSM business registration number, address, and contact email or phone. Set once in your profile and reused on every invoice.
Buyer identification: Buyer's name, TIN, SSM number (B2B only — for B2C consumers, a generic 'EI00000000020' buyer TIN can be used). Address, email, and phone.
Document metadata: Invoice number, issue date, currency code (MYR by default), and document type (invoice, credit note, debit note, refund note, or self-billed variants).
Itemized lines: For each item: description, classification code (LHDN provides a 5-digit code list), quantity, unit price, tax type (SST / GST / exempt), tax rate, tax amount, and line total.
Tax breakdown: Subtotal, total tax amount, and grand total. SST 8% (services) or 10% (sales) where applicable. Multi-tax invoices list each tax separately.
Payment information: Payment mode, bank account / reference (optional but recommended), and payment terms (e.g., Net 30, due on receipt).

Section 4

Three ways to submit an e-invoice

LHDN offers three channels. Each suits a different volume and technical comfort level.

MyInvois Portal (free, manual)

Log in to the LHDN MyInvois Portal, fill the form, submit. Suits low volume (under ~20 invoices/month). No coding, no integration cost. The trade-off is time — every invoice is typed twice (once for your buyer's records, once in the Portal).

MyInvois API (free, technical)

Direct API integration with your own software. Free if you have engineering resources. Suits high volume (hundreds of invoices/month) and businesses that want everything in one system.

Service provider / middleware (paid, easy)

A third-party tool generates and submits e-invoices on your behalf. Suits SMBs that want the convenience of a familiar invoicing tool without managing the LHDN integration directly. Costs typically RM20–RM200/month depending on volume.

Section 5

Step-by-step: issuing your first e-invoice

Get your TIN

If you don't have a Tax Identification Number yet, register through the LHDN MyTax portal. Sole proprietors use their NRIC-linked TIN; companies use the corporate TIN issued at SSM registration.

Register on MyInvois

Visit myinvois.hasil.gov.my, sign in with your MyTax credentials, and activate e-invoice access. Companies need to nominate an authorised representative.

Set up supplier profile

Enter your company name, TIN, SSM number, address, and default contact details. These auto-populate on every invoice — set them once correctly.

Create the invoice

Whether through the Portal, your software, or a service provider, enter buyer details, items, taxes, and totals. Double-check the buyer TIN — wrong TINs are the #1 rejection reason.

Submit and receive UIN

Submit to MyInvois. Validation usually completes within seconds. You'll receive a Unique Identifier Number (UIN) and a QR code embedded in the validated invoice.

Share with your buyer

Send the validated PDF (with QR code) to your buyer via email, WhatsApp, or your usual channel. The buyer has 72 hours to reject if the data is wrong; after that, the e-invoice is final.

Section 6

Common mistakes to avoid

✕Using your IC number instead of TIN — they're different. The TIN starts with 'IG' or 'C' depending on your entity type.
✕Forgetting the buyer's TIN on B2B invoices. For B2C consumers, use the generic buyer TIN 'EI00000000020'.
✕Submitting after the 72-hour rejection window has passed. Once that closes, corrections require a credit note + new invoice.
✕Skipping the consolidated e-invoice. If you sell to many small consumers, LHDN allows one monthly consolidated e-invoice instead of one per transaction — saves hours.
✕Wrong classification code on items. LHDN's 5-digit codes are mandatory; pick the closest match from their published list.

Section 7

Where Invoice DIY fits in

Invoice DIY today produces PDF invoices, quotations, and receipts with every field LHDN requires — supplier and buyer TIN, SSM, multi-tax lines, sequential numbering, and a clean printable layout. You can use it to draft your invoices, share PDFs with buyers, and keep your records organised. Direct MyInvois XML/JSON submission is on the roadmap and will be released as a Pro feature once Phase 4–5 take effect. In the meantime, the easiest workflow for sub-RM5M businesses is: draft and download the PDF in Invoice DIY, then copy the key fields into the MyInvois Portal. Once you're done with the heavy compliance work, the validated invoice can replace your draft — same content, government-stamped.

Try the free generator →

Section 8

Frequently asked questions

I earn less than RM150,000 a year — do I still need to issue e-invoices?: No, businesses earning under RM150,000 annual revenue are currently exempt from issuing e-invoices. You can keep using regular PDF invoices. If a customer that's mandate-bound asks for your TIN, give it to them — they may issue a self-billed e-invoice on your behalf for their tax records.
When does e-invoice become mandatory for freelancers in Malaysia?: If your annual revenue from freelancing is between RM150,000 and RM1 million, the mandate applies from 1 July 2026. Below RM150,000, you're exempt. Most full-time freelancers in design, web development, and consulting fall into the RM150K–RM1M band, so plan to be ready by mid-2026.
What's the difference between an invoice and an e-invoice?: A regular invoice is a document you create and send directly to your buyer (PDF, paper, Excel). An e-invoice is the same document submitted to LHDN's MyInvois system first, validated, stamped with a UIN and QR code, then shared with your buyer. The data is the same; the workflow adds a government validation step.
Can I issue e-invoices through Invoice DIY today?: Invoice DIY today generates LHDN-compliant PDF invoices with all the required fields (TIN, SSM, multi-tax, sequential numbering). Direct MyInvois XML/JSON submission is on our Pro roadmap and will release alongside the Phase 4–5 rollout dates. For now, you can use Invoice DIY to draft and keep records, then submit through the MyInvois Portal.
What if the buyer rejects my e-invoice?: Buyers have a 72-hour window after validation to reject. Common rejection reasons are wrong TIN, wrong amount, or wrong item description. If rejected within 72 hours, the e-invoice is cancelled and you can re-submit a corrected one. If rejected after 72 hours, you'll need to issue a credit note plus a new invoice.
Do I need an SSM business registration to issue e-invoices?: Yes for businesses, no for sole-proprietor freelancers using their personal TIN. If you're operating under a registered sole proprietorship (Perniagaan), SSM registration is required. Casual freelancing using your own name typically uses your individual TIN tied to your IC — but check with LHDN if you're unsure about your specific situation.

Get your invoicing right today — be ready when 2026 hits

Invoice DIY is free to use, no sign-up needed. Create professional PDF invoices with all the fields LHDN requires, save customer details for repeat clients, and stay ahead of the e-invoice rollout.

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