Malaysia
Mixed signals on e-invoices leave companies unsure, MEF urges govt clarity ahead of Jan 1 compliance date
Datuk Syed Hussain Syed Husman (centre), president of the Malaysian Employers Federation (MEF), speaks during the launch of the MEF Survey Publication in Petaling Jaya on December 5, 2025 — Picture by Raymond Manuel

PETALING JAYA, Dec 5 — Businesses are still facing “mixed signals” over the government’s e-invoicing rollout, the Malaysian Employers Federation (MEF) said today as companies prepare for the mandatory switch amid shifting thresholds and exemptions by January 1, 2026.

MEF president Datuk Syed Hussain Syed Husman said employers continue to raise concerns over unclear guidelines and inconsistent announcements, especially on which groups are exempt and how the staggered rollout will work.

“We are hearing different things. First it’s everyone, then exemptions below RM100,000, then changes again. Employers need proper clarity to prepare,” he said during MEF’s briefing on its latest survey findings here.

He said the federation’s members are not opposed to digitisation, but the constant adjustments – including changes to timelines, grace periods and reporting requirements – have left many unsure about how to comply.

“Businesses want to follow the rules but when the messaging changes, it becomes very hard for them to plan. There must be clear and consistent communication,” he said.

The MEF survey found that smaller companies are struggling to understand requirements for consolidated invoices, Application Programming Interfaces (API) integration and transaction-level reporting.

API integration allows different digital systems in Malaysia, such as government services, banks, and e-commerce platforms, to connect and share data seamlessly.

Some companies are unsure whether they fall within the exemption category recently mentioned by officials.

Syed Hussain said with employers already facing rising operational costs, including surging medical premiums, any uncertainty in compliance adds further pressure.

“We’re asking the government to give detailed guidance and enough time for employers to adjust. The confusion must be addressed quickly,” he said.

He added that MEF will continue engaging with authorities to seek clearer direction so companies can transition smoothly when e-invoicing becomes mandatory for their respective categories.

Back in June, the Inland Revenue Board announced that the e-invoice rollout for taxpayers with annual income or sales of RM1 million to RM5 million has been postponed to January 1, 2026.

Also from January 1, 2026, taxpayers must issue an e-invoice for every sale exceeding RM10,000, and consolidated e-invoicing will no longer be allowed.

 

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