Malaysians Are Upset Over E-Invoicing “Flip-Flop” By The Government
The Malaysian Employers Federation raised concerns over unclear e-invoice guidelines and announcements.
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Since August 2024, Malaysia began phasing mandatory electronic invoicing (e-invoicing) for businesses.
Under the system, business to business (B2B), business to customer (B2C), and business to government (B2G) transactions must be digitized, comply with specified data formats (including tax information), and be submitted to the Inland Revenue Board’s (LHDN) system in real-time or near real-time.
The rollout is phased depending on annual turnover or revenue thresholds: largest companies first, then progressively smaller ones later.
Its purpose: improve tax compliance, reduce tax leakages, improve transparency in business transactions, and modernize tax administration.
Business owners are unclear over frequent changes on e-invoices
The government initially set a threshold for companies with an annual turnover of RM500,000 to adopt the e-invoicing system, meaning companies that make less than that would be exempt from implementing it.
In a recent government announcement, the threshold is being raised to RM1,000,000 in 2026 as part of efforts to ease the burden on small-to-medium enterprises (SME), Bernama reported.
Prime Minister Datuk Seri Anwar Ibrahim said the decision was made after the government received direct feedback from small business owners over the cost of implementing the system.
However, many businesses say the guidelines from LHDN have been unclear or shifting as there have been multiple changes to thresholds, exemptions, enforcement dates — which causes confusion.
Malaysian Employers Federation (MEF) president Datuk Syed Hussain Syed Husman said in a Malay Mail report that employers are raising concerns over unclear guidelines and inconsistent announcements, especially on which groups are exempt and how the staggered rollout will work.
“We are hearing different things. First it’s everyone, then exemptions below RM100,000, then changes again. Employers need proper clarity to prepare,” he said.
Public lashes out at mishandling of e-invoicing rollout
On social media, the public has also expressed concerns and confusion over the frequent e-invoicing policy changes.
Some also highlighted the time, effort and money spent to train staff on the e-invoicing system, not to mention the software and hardware that comes with it. With the threshold change, many wonder what happens to the companies that have now fallen below it and are now exempted.
Pmx e-invoice flip flop is pure policy chaos! 18 months, millions spent & SMEs dragged through confusion! 60% of SMEs already cite regulatory overload yet refunds still take 6–12 months! If policymaking is chaotic how do we trust them with a digital economy worth 25% of msia GDP? https://t.co/5tUqGCZZnm
— Jaywalker (@jaywalkertoto) December 7, 2025
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