IRBM Bans Consolidated E-Invoices for Electricity & Telecom Industries from 2026

 

Introduction

The Inland Revenue Board of Malaysia (IRBM) has just released a game-changing update to its e-Invoice guidelines. Starting 1 January 2026, electricity and telecommunication companies can no longer issue consolidated e-invoices. This brings the total number of restricted industries to 10, signaling IRBM's intensified focus on transaction-level compliance monitoring.

What This Means for Your Business

The most significant change affecting ALL businesses is the new RM10,000 transaction threshold. From 1 January 2026, any single transaction exceeding RM10,000 across all industries must be issued as an individual e-invoice - consolidated e-invoices will no longer be permitted for these high-value transactions.

This represents a major shift in IRBM's compliance monitoring strategy. The RM10,000 threshold means that IRBM will have real-time visibility into all significant business transactions, enabling them to detect discrepancies and potential underreporting more effectively than ever before.

The Complete List of Restricted Industries

As of the latest update, these 10 industries/activities cannot issue consolidated e-invoices:

1.Automotive sales

2.Aviation services

3.Luxury goods and jewellery (on hold)

4.Construction contracts

5.Construction materials wholesale/retail

6.Licensed betting and gaming

7.Agent/dealer/distributor payments

8.All transactions exceeding RM10,000 (NEW - effective Jan 2026)

9.Electricity services (NEW - effective Jan 2026)

10.Telecommunication services (NEW - effective Jan 2026)

The Real Impact: RM10,000 Transaction Threshold

While the electricity and telecommunication restrictions affect specific industries, the RM10,000 threshold impacts EVERY business in Malaysia. This means:

• Enhanced Detection Capabilities: IRBM can now track all significant transactions in real-time • Reduced Tax Leakage: Harder for businesses to underreport high-value transactions

• Improved Compliance Monitoring: Cross-referencing capabilities across all business activities • Greater Transparency: Individual e-invoices provide detailed transaction trails

Why the IRBM is Targeting Utilities and High-Value Transactions

The restriction on electricity and telecommunication services, combined with the RM10,000 threshold, isn't random. These provide essential insights into business operations:

• Electricity usage patterns reveal actual business activity levels • Telecommunication data shows business communication patterns

• High-value transactions indicate significant business activities • Individual transaction tracking enables better tax compliance monitoring • Cross-referencing capabilities help detect underreported business activities

How We Can Help

At KS Chia & Associates, we specialize in helping businesses navigate complex tax compliance requirements. With the new RM10,000 threshold affecting all industries, our services include:

• Transaction threshold compliance assessment • E-invoice system optimization • Process review and enhancement • Staff training on new requirements • Ongoing compliance monitoring

The RM10,000 threshold will significantly impact how businesses handle their e-invoice processes. Don't let these new requirements catch you off guard.

Contact us today for a comprehensive compliance review.