Breaking: E-Invoice Extended To 2027 For Businesses Below RM5 Million Threshold

Prime Minister Datuk Seri Anwar Ibrahim announced today (5 Dec) a series of targeted incentives for 2026, headlined by a one-year extension for the implementation of e-invoicing for businesses with an annual turnover below RM5 million.

In a special address, Anwar said the extension will allow affected businesses an additional year to prepare for full e-invoice compliance without facing penalties from the Inland Revenue Board (LHDN).

“This extension is meant to give businesses more time to adjust and implement the system properly,” the Prime Minister said, noting that the government had taken into account feedback from small and medium-sized enterprises (SMEs).

Previously, businesses with annual turnover between RM1 million and RM5 million were required to be fully e-invoice compliant by mid-2026. However, many operators had raised concerns that they were not technically or operationally ready, prompting the government to review the timeline.

The decision has been welcomed by traders and small business owners, who said the additional time would ease compliance costs and reduce disruption to day-to-day operations, particularly for smaller firms with limited digital resources.

Separately, Anwar also announced broader tax relief for micro businesses, with the government raising the Sales and Service Tax (SST) exemption threshold. Under the revised policy, businesses with annual turnover of below RM1.5 million will now be exempt from SST, up from the previous threshold of RM1 million.

Further details on the revised timelines and implementation guidelines are expected to be issued by the Ministry of Finance and the Inland Revenue Board in due course.