General information
Important Highlights:
- Scope:
- Mandatory for domestic, cross-border, and e-commerce transactions.
- Applies to employee-related expenses, which must be documented with e-invoices.
- Implementation Timeline:
- From 1 January 2026: Mandatory for businesses with annual sales/income over RM 1 million and up to RM 5 million (~US$235,814–1.1 million).
- From 1 July 2026: Extends to those with sales/income up to RM 1 million.
- Exemptions:
- Individuals not engaged in business,
- Taxpayers earning below RM 500,000 (~US$117,907),
- Certain self-billed invoice scenarios.
- Submission Channels:
- Through the MyInvois Portal or via API integration.
- Special Cases:
- Detailed guidance is included for cross-border and digital/e-commerce transactions.
The guidelines support Malaysia’s broader digital tax reform by enhancing transparency, improving data quality, and ensuring tax compliance across business types and transaction models. Early alignment with the requirements—especially for digital and cross-border sellers—will be key to avoiding disruptions during the phased rollout.
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