The short answer
Under RM3 million a year in revenue? You do not need to issue e-invoices.
Website sales to the public can go into one consolidated e-invoice a month, due within 7 days after month end.
Add an optional e-invoice box at checkout for business buyers. No new website needed.
First, check if you need it at all
Before you buy any software or change your website, answer this one question. For most small businesses in Melaka, the answer is not yet.
Under RM3 million a year? You are exempt
Since LHDN's e-Invoice Guideline of 30 August 2026, businesses with annual turnover or revenue below RM3 million do not have to issue e-invoices. Most shops, cafés, clinics and small firms fall under this.
Part of a group? Check first
If your business belongs to a group, and a holding or related company earns RM3 million or more, the exemption may not apply. Ask your accountant to confirm.
RM3 million to RM5 million
Businesses in this range started on 1 January 2026. LHDN gives a relaxation period until 31 December 2027, and penalties start from 1 January 2028.
Exempt, but want to be ready?
You can still choose to issue e-invoices. Some businesses do, because their bigger customers ask for them.
If you sell through your own website
Once e-invoicing applies to you, sales on your own website are your responsibility. The good news is that most online sales to the public are simple.
Sales to the public: one invoice a month
When a buyer does not ask for their own e-invoice, you can combine those sales into one consolidated e-invoice for the month. It must be submitted within 7 days after the month ends.
A buyer may ask for their own
Business buyers often want an e-invoice in their company's name. Then that sale needs its own e-invoice, with the buyer's details.
Big orders are different
A single sale above RM10,000 needs its own e-invoice, even when the buyer is a member of the public.
Shopee, Lazada and other platforms
For sales made through an e-commerce platform, LHDN says the platform handles the e-invoice. Only the sales on your own website are yours to look after.
Small changes to your website or store
You do not need a new website. A few small changes make the monthly work easy for you and your accountant.
An optional e-invoice box at checkout
Add a tick box like “I need an e-invoice for my company”. When ticked, ask for the company name, tax number (TIN), SSM number, address and email. Leave it off for everyone else.
An order report your accountant can use
Make sure you can download each month's orders with dates, amounts, refunds and buyer details. Most WooCommerce stores already can.
Connect to your accounting software
Most Malaysian accounting software now sends e-invoices to LHDN's MyInvois system for you. Your store only needs to pass the order details along.
Treat buyer details with care
Tax numbers and addresses are personal data under the PDPA. Collect them only from buyers who ask, and say so in your privacy notice.
Month to month, once it applies
After the first month, it becomes a small routine.
First week of every month
Submit the consolidated e-invoice for last month's public sales, and the individual ones for buyers who asked.
Made a mistake? You have 72 hours
An e-invoice can be cancelled within 72 hours after LHDN validates it, then issued again. After that, fix it with a credit or debit note.
Refunds need a note too
When you refund an online order, issue a credit or refund note so your records still match.
MyInvois is free
LHDN's MyInvois Portal and app are free to use. If you sell only a few items a month, you can enter invoices there by hand.
Mistakes to avoid
Most of the problems we see come from worry, not from the rules.
Paying for a system you do not need yet
If you are under RM3 million, there is no rush to sign up for an expensive e-invoice package.
Asking every customer for their IC
Members of the public do not need to give you anything. Only collect details from buyers who ask for an e-invoice.
Trusting “LHDN” messages blindly
Scammers use the e-invoice topic too. LHDN does not ask you to pay to register through a link. Log in to MyInvois yourself.
Guessing instead of asking
Rules have changed several times since 2024. Before you decide, check LHDN's latest guideline or ask your accountant.
Quick answers.
01Does my small business need e-invoicing?
Not if your annual turnover or revenue is below RM3 million, unless you are part of a group where a related company earns more. Your accountant can confirm in a few minutes.
02When do penalties start?
For businesses with revenue up to RM5 million, LHDN gives a relaxation period until 31 December 2027. Penalties apply from 1 January 2028.
03What is the penalty for not issuing an e-invoice?
Under section 120(1)(d) of the Income Tax Act 1967, a fine of RM200 to RM20,000, up to six months in prison, or both, for each offence. This applies only to businesses that are required to issue e-invoices.
04Do I need a new website for e-invoicing?
No. Most stores only need an optional e-invoice box at checkout and a clear monthly order report. Your accounting software does the sending.
05I sell on Shopee and on my own website. Who issues the e-invoice?
The platform handles e-invoices for sales made on the platform. You look after the sales on your own website, if e-invoicing applies to you.
06What does CST charge?
Adding an e-invoice box at checkout or setting up an order export is charged as website fixes at RM150 an hour, with the estimate approved first. A new WooCommerce online store is RM7,000. Tax questions are best answered by your accountant.
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