4 Things Businesses < RM150K Must Pay Attention To (E-Invoice 2025 FAQ)

Think e-invoicing doesn’t apply to you because your revenue is below RM150K? Think again.

One of the most common assumptions we hear is this:

“My business makes less than RM150,000 a year, so I don’t need to worry about e-invoicing, right?”

It sounds reasonable—but it’s not that simple.

Even if your annual revenue is under RM150K, there are still important e-invoicing rules and responsibilities you need to be aware of. Skipping over these details could lead to confusion, missed steps, or even compliance issues later on.

To help clear things up, here are a few common questions business owners like you often ask:

How do I know if my supplier’s revenue is under RM150K?
What exactly is a “related company,” and why does it matter for e-invoicing?
Do I need to apply for any kind of exemption if I earn below RM150K?
Can I still issue or receive e-invoices for tax deductions?

Read on as we walk you through it, step by step, in the quick FAQ guide below.

Common E-Invoicing Misconceptions You Shouldn’t Ignore (As A Small or Mid-sized Malaysian Business)

1. How can I tell if my supplier’s turnover is below RM150K?

The simplest way is to ask your supplier directly whether they are subject to e-invoicing. If they say no and explain it’s because their turnover is below RM150K, then the responsibility rests with them.

However, if you later discover they actually exceed the RM150K threshold and misrepresented their status, there is currently no clear guidance from LHDN on how to handle that situation.

2. What counts as a “related company” under e-invoicing rules?

A “related company” isn’t defined by shareholders alone—it’s about control. For example, if the same director has authority over both Company A and Company B and can influence both companies’ decisions, then the two companies are considered related.

In this case, if Company A has a turnover above RM150K, Company B will also need to implement e-invoicing—even if B’s own turnover is below the threshold.

3. Do I need to prove that my company earns less than RM150K?

No, LHDN doesn’t require formal proof. However, you are expected to monitor your business turnover regularly. A company that’s currently below RM150K may grow and cross the threshold in the future—at that point, it must begin using e-invoicing.

4. Do I need e-invoices to claim tax deductions if my company earns less than RM150K?

No, you don’t. If your business turnover is below RM150K, you are not required to issue or receive e-invoices, even for claiming tax deductions. The key factor is the turnover threshold—not the purpose of the expense.