Malaysia Updates E-Invoice Guidelines: Key Changes for Wholesalers and Small Businesses

The Inland Revenue Board of Malaysia (IRBM) released Version 4.6 of its e-Invoice Specific Guideline on January 5, 2026. This latest update introduces critical clarifications regarding consolidated e-invoices, significantly relaxing rules for the construction material sector and extending grace periods for smaller enterprises.

Consolidated E-Invoice Exclusions Revised

One of the most notable changes in Version 4.6 is a pivot in policy regarding the construction industry. Previously, wholesalers and retailers of construction materials were strictly prohibited from issuing consolidated e-invoices, forcing them to generate individual invoices for every transaction.

New Flexibility for Construction Materials

Under the new guideline, this restriction has been lifted. Wholesalers and retailers of construction materials are now permitted to issue consolidated e-invoices. This change aligns them with most other sectors, simplifying the billing process. However, businesses must still issue an individual e-invoice if a buyer specifically requests one to document their own expenses.

Extended Grace Periods for Small Taxpayers

The update also brings welcome news for smaller businesses navigating the transition to mandatory e-invoicing. While the full mandate for all taxpayers (Phase 3) already came into effect on July 1, 2025, the IRBM has officially extended the soft-landing period to support compliance.

Timeline Adjustments

Soft-Landing & Penalty Relief Taxpayers with an annual turnover or revenue of up to RM5 million have been granted an extended grace period regarding penalties. These businesses can now utilize consolidated e-invoicing as their primary method without facing non-compliance penalties until December 31, 2026, provided they are actively transitioning to the MyInvois system.

What Is Allowed During the Grace Period?

During this concessionary window, the government allows for:

• Consolidated Invoicing: Issuing consolidated e-invoices for all transactions, even those typically requiring individual invoices.
• Flexible Descriptions: Entering any text in the "Description of Product or Service" field, removing the strict requirement for receipt or bill reference numbers.
• Self-Billing: Issuing consolidated self-billed e-invoices for all applicable scenarios.

The IRBM has stated it will not prosecute non-compliance during this period, provided that taxpayers are making an effort to issue consolidated invoices where applicable.

There’s more you should know about e-invoicing in Malaysia – learn more about the new and upcoming regulations.