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Tax-exempt firms can continue using e-invoicing system, says Liew

Malaysia's Finance Ministry has clarified that approximately 160,000 taxpayers who have registered for e-Invoicing but are now exempted from tax obligations can choose to continue using the digital system.

LSN Malaysia · 7 October 2026

KUALA LUMPUR — Around 160,000 taxpayers who have enrolled in Malaysia's e-Invoicing framework but subsequently became tax-exempt have been given the option to maintain their participation in the digital invoicing system, according to the Ministry of Finance.

The clarification addresses concerns among businesses that had registered for e-Invoicing before their tax status changed. Rather than requiring these firms to exit the system, the government has confirmed they may voluntarily continue using the platform if they wish to do so.

The e-Invoicing system, which aims to streamline tax administration and improve compliance, has seen significant uptake since its introduction. The flexibility offered to tax-exempt registered users is intended to reduce administrative burden while maintaining the integrity of the digital invoicing framework.

The move reflects the government's approach to balancing regulatory requirements with practical considerations for businesses navigating changing tax obligations. Officials have indicated that taxpayers should review their individual circumstances and consult with tax authorities if they require further guidance on their participation status.