The Inland Revenue Board (IRB) has announced that no penalties will be imposed for non-compliance with e-Invoicing requirements, provided taxpayers comply with the prescribed regulations.
In a statement today, the IRB said it recognises that taxpayers, particularly micro, small and medium enterprises (MSMEs), require sufficient time to meet the legal requirements for implementing e-Invoicing.
As such, during the transition period from Jan 1, 2026 to Dec 31, 2026, taxpayers will be allowed to issue consolidated e-Invoices for all activities and transactions, including those involving industries or activities listed under Section 3.7 of the e-Invoice Specific Guideline.
The IRB also clarified that consolidated e-Invoices may be issued even if a buyer requests an individual e-Invoice.
Earlier, Prime Minister Datuk Seri Anwar Ibrahim announced that the government had agreed to grant taxpayers involved in Phase 4 of e-Invoicing, beginning Jan 1, 2026, a 12-month transition period, instead of the previously planned six months.
In addition, the IRB said taxpayers are permitted to issue consolidated self-billing e-Invoices for all self-billing scenarios outlined under Section 8.3 of the e-Invoice Specific Guideline. Taxpayers are also allowed to include any transaction description in the “Product or Service Description” field.
The IRB further stated that taxpayers in the wholesale and retail construction materials sector will be allowed to issue consolidated e-Invoices starting Jan 1, 2026. Under this arrangement, e-Invoices will only be required for transactions exceeding RM10,000 or when requested by the buyer.
The board expressed hope that these measures will give taxpayers, especially MSMEs, adequate time to prepare for the implementation of e-Invoicing, while reducing the compliance burden on construction materials traders who would otherwise need to issue e-Invoices for every transaction.
