Our Advice: e-Invoice is Live. Use the Soft Landing Period Wisely

UPDATE (06/01/2026): LHDN Releases Guideline Version 4.6

Lembaga Hasil Dalam Negeri (LHDN) has now published the official e-Invoice Specific Guideline (Version 4.6), which confirms the recent announcements and provides important technical clarifications.

Key Clarification: The 01/07/2026 Implementation Date

The new guideline answers a common question we have received: "Why is the 1st of July 2026 mentioned as an implementation date?"

Table 16.1 of the guideline clarifies that this date applies specifically to new companies that commenced their business on or after the year 2023. For most existing businesses covered in this phase, the implementation date remains 01/01/2026.

This confirms our core advice remains unchanged: the system is live, and the extended relaxation period to 31/12/2026 should be used as a "soft landing" period to prepare for the mandatory compliance deadline of 01/01/2027.

You can access the full guideline directly from LHDN here: e-Invoice Specific Guideline (Version 4.6)

The latest tax announcements from the Malaysian government have created both relief and confusion. While timelines have been extended, the core requirement has not changed. Here is our direct, professional advice.

Our Advice: e-Invoice Phase 4 is Already Live

This is the most critical point to understand: the e-Invoice implementation start date has not been delayed. The system is live now for businesses with a turnover between RM1 million and RM5 million.The government's announcement only extends the relaxation period to 31/12/2026. You must still issue e-Invoices. We are advising all our clients to treat this as a "soft landing" period. This is a valuable opportunity to get things right without the immediate threat of penalties. Use this time to:

•Train your staff on issuing and managing e-Invoices.

•Refine your workflows to ensure they are efficient and compliant.

•Fix any errors in your process now, while penalties are waived.

Full, strict compliance becomes mandatory on 01/01/2027. Waiting until the end of 2026 to get started would be a significant strategic error.

Critical Update for the Construction Materials Sector

In a welcome change, wholesalers and retailers of construction materials are now permitted to issue consolidated e-Invoices. However, there is a crucial distinction compared to the general relaxation rules.For this sector, you MUST issue an individual e-invoice if:

•A single transaction exceeds RM10,000, OR

•The buyer requests one.

This is a stricter requirement than the general Phase 4 rule, where buyer requests can be declined.

Summary of Other Key SST Changes

•SST on Rental: The rate is now reduced from 8% to 6%.

•MSME Exemption: The turnover threshold for exemption from SST on rent is now RM1.5 million.

•Non-Reviewable Contracts: The SST exemption for eligible construction contracts is extended to 30/06/2027.

Take Action Now

The message from the authorities is clear: use this extended grace period to prepare, not to procrastinate. If you need professional guidance to ensure your business is on the right track for the 2027 deadline, our team is ready to assist.

KS Chia & Associates (AF001828)

📲 WhatsApp us: 011 2366 5233