The Ultimate E-Invoice FAQ for Malaysian Businesses (2025)

Post title 'All Your FAQ Answered (E-invoice Masterpost)' on green banner overlaying image of a puzzle pieces coming together

Since January 2025, LHDN has rolled out Phase 2 of the e-invoice implementation, and many mid-sized businesses are now required to comply. If you’re not sure what this means for you — or how to stay compliant — this post has your back.

We’ve rounded up the most frequently asked questions Malaysian businesses and taxpayers are asking about e-invoicing. Whether you’re selling online, managing B2B clients, or just getting started, this FAQ masterpost will help you make sense of it all.

E-Invoicing for Business Transactions

If you’re dealing with other businesses, e-invoicing will soon become the norm. Each invoice will need to be validated by LHDN, and customers will be able to check and verify these invoices through the MyInvois system.

Even for consumer transactions, like retail or services, e-invoicing applies — though you’ll usually issue a simplified version. The rules are slightly different depending on the nature of your business relationship, so it’s important to understand how each scenario works.

How to manage e-invoicing in sole proprietorships & partnerships

Avoiding Common Mistakes in E-invoicing

Getting e-invoicing wrong can lead to unnecessary stress. Some common errors include missing mandatory fields, issuing duplicate invoices, or failing to cancel invalid ones. The system does allow for corrections, but it’s best to get it right the first time.

Pro Tip: keep a checklist handy when issuing e-invoices to save time and keep you compliant with Malaysia’s e-invoice requirements.

Master these e-invoice details (Self-billing, commissions, rental utilities payment)

E-invoicing for daily operations (FOC items, grocery order, company claim)

When, how and who can issue a consolidated e-invoice

E-Invoicing & E-Commerce: What Sellers Should Know

Selling online? E-invoicing still applies. Whether you’re on Shopee, Lazada, or your own website, you’re expected to issue valid e-invoices — even for low-value items or anonymous buyers.

It’s especially important for platforms or sellers with growing revenue to stay updated. The e-invoicing framework doesn’t leave e-commerce out of the loop.

Common LHDN e-invoicing questions on Taobao, Amazon, and overseas purchases

E-Invoicing Under RM150K: What to Know About LHDN E-Invoice Implementation

Phase 2 kicked off on 1 January 2025, and it’s a big one for mid-sized businesses. If your annual turnover meets the threshold, you’ll need to start issuing e-invoices for most of your transactions — including B2B, B2C, and cross-border.

The good news? LHDN provides the MyInvois portal for direct submissions, or you can integrate via API if you’re using accounting software. Either way, the key is to get started early and understand the e-invoice requirements in Malaysia before the deadline creeps up.

Can I say no? E-invoice FAQ for <RM150K businesses

Are you feeling confused about the LHDN e-Invoicing system?

🚨 E-invoicing Phase 3 is coming, but you don’t know how to get started?

🚨 How to choose an e-invoicing system? What’s the difference between free and paid options?

🚨 Will it affect your business and increase operating costs?

🚨 LHDN regulations are constantly changing—how can you ensure compliance?

🚨 Heard that issuing the wrong invoice could result in a fine of up to RM20,000—is it true?

Don’t let these questions stress you out!

E-invoicing may sound overwhelming, but it’s all about adapting early. As e-invoicing in Malaysia becomes mandatory in 2025, taking small steps now — like understanding your obligations — will help your business stay ahead.

Our E-Invoicing Course will guide you step by step to master e-invoicing, helping you navigate the new regulations with ease!