Regulatory updates - Malaysia

On January 5, 2026, the Inland Revenue Board of Malaysia (IRBM) released e-Invoice Specific Guideline Version 4.6. The latest version introduces important clarifications to support businesses in implementing e-invoicing requirements.

Consolidated e-invoices

Wholesalers and retailers of construction materials are no longer restricted from issuing consolidated e-invoices. They may now use consolidated e-invoices for multiple transactions, except when a buyer specifically requests an individual e-invoice.

Grace periods

Taxpayers with annual turnover up to RM5 million, whose implementation dates are January 1, 2026, or July 1, 2026, now have a grace period until December 31, 2026, to issue consolidated e-invoices without penalties.

On December 7, 2025, the Inland Revenue Board of Malaysia (IRBM) published revisions to the e‑invoice Guideline version 4.5 and Specific Guideline version 4.5. The update adjusts start dates and transition arrangements, aligning full implementation with July 1, 2026.

For taxpayers with annual turnover or revenue up to RM5 million (approx. EUR 1 million), the e‑invoice implementation begins January 1, 2026, followed by full compliance from July 1, 2026, after the interim relaxation period.

Applicability to new businesses

The new guidance sets structured start dates for newly established businesses:

• Commencing during 2023–2025 with annual turnover or revenue of at least RM1million: as of July 1, 2026.
• Commencing from 2026 onwards: as of July 1, 2026, or upon commencement, whichever is later.
• If the first year’s turnover is below RM1 million, the e-invoice implementation date becomes January 1 in the second year after the year in which the RM1 million threshold is reached.

Grace (“soft launch”) period

To support a smooth transition, the Malaysian Government provides a six‑month interim relaxation for taxpayers with annual turnover or revenue up to RM5 million, covering January 1, 2026, to June 30, 2026.

On September 12, 2025, the Inland Revenue Board of Malaysia (IRBM) released version 4.4 of the e-invoice Specific Guideline, extending the list of activities that require e-invoices to be issued individually for each transaction.

Effective January 1, 2026, electricity and telecommunication services have been added to the list of activities and transactions for which consolidated e-invoices are not permitted.

The following activities or transactions must be invoiced separately and cannot be consolidated:

• Sale of any motor vehicle.
• Sale of flight tickets and private charter.
• Luxury goods and jewellery.
• A construction contractor undertaking a construction contract.
• Sales of construction materials, regardless of volume sold.
• Pay-out to winners for all betting and gaming activities
• Payment to agents, dealers, or distributors.
• As of January 1, 2026:
  • For all industries, an individual e-invoice must be issued for each transaction exceeding RM10,000 (approximately EUR 2,200).
  • Distribution, supply or sale of electricity, applicable only to electricity service providers.
  • Telecommunication services related to postpaid plans, internet subscriptions, and the sale of electronic devices.