Regulatory updates - Malaysia

On June 3, 2025, Peppol published the updated PINT BIS Malaysia Billing Process 1.2.0 and PINT BIS Malaysia Self Billing Process 1.2.0, further refining Malaysia’s compliance with the Peppol Business Interoperability Specifications (BIS) and the Inland Revenue Board of Malaysia (IRBM) requirements.

These specifications support the following document types:

• PINT BIS Malaysia Billing process 1.2.0 – Malaysian Billing specification compliant with the PINT methodology, incorporating Invoice and Credit Note transactions.
• PINT BIS Malaysia Self Billing process 1.2.0 – Malaysian Self Billing specification compliant with the PINT methodology, incorporating Self Billing Invoice and Credit Note transactions. This version uses the same data model as PINT MY Billing, ensuring consistency across document types.

These updates replace version 1.1.0, published in November 2024, and continue to support the goals of streamlining invoice processing, ensuring tax compliance, and enabling seamless interoperability across e-invoicing platforms.

On June 5, 2025, the Inland Revenue Board of Malaysia (IRBM) officially confirmed a new adjustment to the phased e-invoicing rollout. The decision reflects the government’s consideration of challenges faced by businesses, particularly Micro, Small and Medium Enterprises (MSMEs), in preparing for e-invoicing adoption.

Revised implementation timeline

Previously, Phase 3 of the e-invoicing mandate was scheduled to apply to taxpayers with annual sales exceeding RM500,000 (approx. EUR 110,000) and up to RM25 million (approx. EUR 5 million) starting July 1, 2025. Following this latest revision:

• Phase 3: July 1, 2025 – taxpayers with annual sales exceeding RM5 million (approx. EUR 1 million).
• Phase 4: January 1, 2026 – taxpayers with annual sales between RM1 million and RM5 million (approx. EUR 220,000–1 million).
• Phase 5: July 1, 2026 – taxpayers with annual sales between RM500,000 and RM1 million (approx. EUR 110,000–220,000).

Exemptions

Taxpayers with annual sales below RM500,000 (approx. EUR 110,000) remain exempt from the e-invoicing requirement.

Grace (“soft launch”) period

The previously established six-month soft launch period remains in place for each phase. During this period:

• Taxpayers may issue consolidated e-invoices for all transactions.
• If requested by the buyer, sellers must issue an individual e-invoice per transaction, particularly for sales or services exceeding RM10,000 (approx. EUR 2,200).

Additionally, the IRBM has confirmed that no enforcement actions under Section 120 of the Income Tax Act 1967 will be taken during the grace periods.

Updated e-invoice guidelines

To reflect these changes, the Inland Revenue Board of Malaysia updated the previously published  e-invoice Guideline version 4.4. and the e-invoice Specific Guideline version 4.2.

The only change introduced in the updated Specific e-Invoice Guideline is as follows:

• Effective January 1, 2026, for all industries, an individual e-invoice must be issued for each transaction exceeding RM10,000 (approximately EUR 2,200).

For such transactions, issuance of a consolidated e-invoice will not be permitted.

On February 20, 2025, the Malaysian government announced a revised timeline for e-invoicing implementation. This decision primarily benefits micro, small, and medium enterprises (MSMEs) by allowing a longer preparation window before compliance becomes mandatory. E-invoicing for MSMEs with annual sales between 150,000 RM and 500,000 RM will now start on January 1, 2026.

Revised implementation timeline

Previously, Phase 3 applied to all remaining taxpayers; however, it has now been revised to include taxpayers with an annual turnover or revenue of more than 500,000 RM (ca. 110,000 EUR) and up to 25 million RM (ca. 5 million EUR), effective July 1, 2025.

The newly introduced Phase 4, commencing January 1, 2026, will apply to taxpayers with an annual turnover or revenue of more than 150,000 RM (ca. 35,000 EUR) and up to 500,000 RM (ca. 110,000 EUR).

Grace (“relaxation”) period

As previously reported by Pagero, the IRBM introduced a six-month grace period for each implementation phase, allowing businesses to issue consolidated e-invoices for all transactions.

Under the third phase, this grace period extends from July 1, 2025, through December 31, 2025, while the fourth phase’s grace period runs from January 1, 2026, through June 30, 2026.

Exemption

Businesses earning below 150,000 RM (ca. 35,000 EUR) annually are fully exempt from the e-invoicing requirement.

Updated e-invoice Guidelines

To reflect these changes, the Inland Revenue Board of Malaysia updated the previously published  e-invoice Guideline version 4.2. and the e-invoice Specific Guideline version 4.1.