As Malaysia accelerates its digital transformation, the implementation of e-Invoicing is becoming a mandatory requirement for all businesses, including micro, small, and medium enterprises (MSMEs). In this article, we address five key concerns that MSMEs might have regarding the implementation of e-Invoicing. 

1. Implementation of e-Invoicing 
All businesses, including MSMEs, are required to implement e-Invoicing according to the timeline outlined in the e-Invoice Guideline. However, there is an exemption for businesses with an annual revenue below RM150,000. However, while the exemption applies to a wide range of businesses, including individuals, partnerships, and companies, it does not cover the following: - 

• Taxpayers with non-individual shareholders whose annual revenue exceeds RM150,000; or 
• Subsidiaries of a holding company with annual revenue over RM150,000; or  
• Taxpayers with related companies or joint ventures with an annual revenue exceeding this annual revenue threshold.  

Therefore, MSMEs in these categories, even if their annual revenue is below RM150,000, will not be eligible for the exemption. 

2. Date of Implementation  
For MSMEs whose annual revenue originally did not exceed RM150,000 but later exceeded this threshold, the requirement to implement e-Invoicing comes into effect on 1 January of the second year after the year in which their revenue exceeded RM150,000. For example, if a business’s annual revenue is RM120,000 in 2024 but grows to RM180,000 in 2025, the business must implement e-invoicing starting from 1 January 2027. This allows MSMEs time to make adjustments and implement the necessary digital systems to comply with the regulations. 

3. Sole Proprietors with Multiple Businesses 
Sole proprietorships with multiple businesses are also required to account for the total annual revenue from all businesses under the owner’s name when determining whether they have exceeded the RM150,000 threshold. If they exceed this threshold, all businesses are required to implement e-Invoicing. 

4. Ongoing E-Invoicing Requirement
Once e-Invoicing becomes mandatory for an MSME, it remains in effect even if the annual turnover drops below RM150,000 in subsequent years. There is no option to return to an exempt status once the requirement has been established, ensuring continuity in the use of e-Invoices. 

5. e-Invoice Requirement for Physical and e-Commerce Stores 
MSMEs conducting sales through both physical stores and e-commerce platforms are required to issue e-Invoices for their physical store sales. For e-commerce sales, the responsibility for issuing e-Invoices lies with the e-commerce platform provider. 

To support MSMEs, especially those without the budget for new digital systems, the Inland Revenue Board of Malaysia (IRBM) offers the MyInvois Portal and MyInvois Mobile App (release date not confirmed yet) for free. These platforms provide the necessary tools to comply with e-Invoicing requirements without significant financial investment, making the transition more accessible for smaller businesses.

While e-Invoicing may present initial challenges, it offers long-term benefits like streamlined operations, better cash flow, and simplified tax compliance. By preparing early and using available resources, it becomes an opportunity for growth and efficiency, rather than just a compliance requirement.