The exemption from mandatory e-invoicing does not apply to every taxpayer with an annual turnover of less than RM1 million. The Companies that are part of a larger group or have a related company with an annual turnover of more than RM1 million will still be required to implement e-invoicing by July 1, 2026 – the concessionary implementation date. This rule ensures that the exemption benefits only MSMEs, and not small entities that are part of larger groups.

Hence, July 1, 2026, is still a relevant date for e-invoicing implementation, especially for high growth start–ups and smaller entities that are part of larger groups.