HASiL's announcement of 30 August 2026 raises the e-invoicing exemption threshold from one to three million ringgit, effective from 1 September 2026. Taxpayers whose annual income or turnover remains strictly below that amount may qualify, subject to the exclusions in the e-Invoice guideline.
Paragraph 1.6.10 of guideline version 4.8 excludes the exemption where a shareholder other than an individual reaches that threshold, where the taxpayer is a subsidiary of a holding company that reaches it, or where a related company or joint venture reaches it. The business's own turnover alone is therefore insufficient; ownership relationships and the entities concerned must also be examined.
Documenting the exemption should therefore combine financial data with the ownership chart. Analysis of a small entity cannot stop at its own sales where one of the exclusion situations may arise. A general rule aggregating all group turnover must not, however, be invented: the guideline describes relationships and thresholds for the entities concerned. The conclusion depends on that classification, before deciding to stop or voluntarily continue e-invoicing.
A business reaching exactly three million ringgit does not fall within this exemption based on an amount below the threshold. HASiL encourages voluntary participation by exempt persons. In practice, the e-invoicing exemption must be distinguished from other tax and accounting obligations that still need to be checked.