e-Invoicing will be mandatory for all businesses soon! Is your business ready for e-invoicing? 
Malaysia e-Invoicing Latest Updates: Full Timeline of LHDN's Updates (As of June 2025)
A complete chronology of Malaysia's e-invoicing latest updates and journey, prepared and updated by Onnet Consulting.
9 June, 2025 by
Administrator

As Malaysia's most experienced Odoo partner, Onnet Consulting is proud to support businesses in navigating the evolving landscape of LHDN's e-Invoicing mandate. 

To make it easier for Malaysian companies to understand what has happened, what is happening, and what is coming next, we've compiled the full timeline of updates from LHDN (Inland Revenue Board of Malaysia).

Whether you're a large enterprise or a growing SME, this living record gives you everything you need to stay compliant and ahead of any latest updates on e-invoicing.

E-Invoicing Timeline by LHDN


June 2025
Major Timeline Revision Announced

LHDN revises the implementation plan for smaller businesses.

February 2025
Phase 1 Grace Period Ends

Full compliance required for companies from Phase 1. 

January 2025
e-Invoice Phase 2

From 1st January 2025, businesses with an annual turnover between RM25 million and RM100 million must adopt e-invoicing.

August 2024
e-Invoice Phase 1

Starting 1st August 2024, businesses with a turnover exceeding RM100 million must generate e-invoices.

April 2024
Guideline Release v2.3 & SDK v1.0

LHDN released versions that defined the framework and early integration references.

March 2023
Official Announcement

LHDN announced a phased plan for mandatory e-invoicing implementation for all businesses.

Grace Periods Continue

Each phase includes a 6-month relaxation window where consolidated invoicing is allowed and penalties are not enforced.


June 5, 2025: Major Timeline Revision Announced

  • LHDN revises the implementation plan for smaller businesses.

New Rollout Dates:

  • RM5M - RM25M: Mandatory from July 1, 2025 (Phase 3)

  • RM1M - RM5M: Mandatory from January 1, 2026 (Phase 4)

  • Up to RM1M: Mandatory from July 1, 2026 (Phase 5)

  • Below RM500K: Temporarily exempt

Also released:

  • e-Invoicing Guideline v4.4

  • Specific Guideline v4.2

These updates introduced refined validations, document flows, and transaction categories.



February 2025: Phase 1 Grace Period Ends

  • Full compliance is required for companies from Phase 1.


January 1, 2025: Phase 2 (RM25M - RM100M Turnover)

  • Mandatory e-Invoicing for businesses with annual turnover between RM25 million to RM100 million.

  • Grace period: until July 1, 2025


August 1, 2024: Phase 1 (Corporates with > RM100M turnover)

  • E-invoicing becomes mandatory for businesses with an annual turnover exceeding RM100 million.

  • Grace period: until February 1, 2025


April 6, 2024: Guideline Release v2.3 & SDK v1.0

  • e-Invoicing Guideline v2.3

  • Specific Guideline v2.1

  • Software Development Kit (SDK) v1.0

This version defined the framework and early integration references.


March 2023: Official Announcement

LHDN announces the rollout of mandatory e-Invoicing, aligned with global tax digitisation trends.



Need Help Going Compliant?

Onnet Consulting offers a custom Odoo ERP solution tailored for Malaysia's e-Invoicing requirements. As the most experienced Odoo partner in Malaysia, we help businesses of all sizes align with LHDN e-invoicing standards seamlessly and affordably.

Book a demo with our ERP experts to see how e-Invoicing works in Odoo!