On 20–22 April 2026, LHDN released two major updates: e-Invoice Specific Guideline Version 4.7 and an updated set of General FAQs. Buried inside was a headline announcement — the Phase 4 relaxation period has been extended by a further 12 months, now running to 31 December 2027.
Many business owners are reading this as "I don't need to worry until 2028." That interpretation is wrong, and it could be costly. Here is exactly what changed, what it means, and what your business must still do right now.
Important: The relaxation period is NOT an exemption. Phase 4 e-Invoice became legally mandatory on 1 January 2026. The extension only delays penalty enforcement — your obligation to implement started months ago.
What LHDN Just Announced (April 2026)
Two documents were published within days of each other:
- 20 April 2026 — e-Invoice Specific Guideline Version 4.7 released, replacing v4.6. Covers periodic billing, self-billed e-invoices, cross-border transactions, and updated enforcement policies during the relaxation period.
- 22 April 2026 — Updated General FAQs officially confirming the Phase 4 relaxation extension and clarifying key operational rules including the RM10,000 threshold.
The extension was announced by Prime Minister Datuk Seri Anwar Ibrahim as part of broader SME support measures, recognising that many smaller businesses needed more time to integrate their systems with the MyInvois portal.
The Updated Phase 4 Timeline
| Milestone | Date | What It Means |
|---|---|---|
| Phase 4 mandatory start | 1 January 2026 | Legal obligation begins — you must issue e-Invoices |
| Relaxation period ends | 31 December 2027 | Extended from original 30 June 2026 (12+ month extension) |
| Full enforcement begins | 1 January 2028 | Penalties imposed without exception |
Who is Phase 4? Businesses with annual turnover between RM1 million and RM5 million, based on FY2022 audited financial statements. If you are in this range, this article applies to you.
What "Relaxation Period" Actually Means
The relaxation period is a compliance facilitation measure — not a postponement. Think of it as a supervised transition window, not a free pass.
✓ What You CAN Do During Relaxation
- Issue monthly consolidated e-Invoices instead of one per transaction
- Batch multiple B2C sales into a single end-of-month submission
- Use the relaxation window to train staff and refine your setup
- Correct errors and rejected invoices without immediate penalties
✗ What You CANNOT Do During Relaxation
- Skip e-Invoice entirely — the legal obligation is still in force
- Continue using PDF invoices or Word/Excel billing without MyInvois submission
- Ignore the RM10,000 rule (see below — this is fully enforced)
- Submit invoices in PDF or image format — only XML or JSON is accepted
Bottom line: Relaxation = more time to get your systems right, with reduced penalty risk. It does not mean e-Invoice is optional. LHDN's updated FAQs state clearly: "The relaxation represents a compliance facilitation measure, not a postponement of e-invoicing."
The RM10,000 Rule — NOT Relaxed, Enforced From Day One
This is the clause that trips up the most businesses during the relaxation period. Many owners assume the monthly consolidated invoice rule covers everything. It does not.
Any single transaction of RM10,000 or above requires its own individual LHDN-validated e-Invoice. It cannot be bundled into the monthly consolidated batch, and this rule is fully enforced even during the relaxation period. Penalties of RM200–RM20,000 per offence apply.
| Scenario | Rule | During Relaxation? |
|---|---|---|
| Daily retail sales (mostly below RM10K per transaction) | Monthly consolidated e-Invoice allowed | ✓ Allowed |
| Single project invoice for RM45,000 | Individual e-Invoice required | ⚠ Enforced now |
| Wholesale order worth RM12,000 | Individual e-Invoice required | ⚠ Enforced now |
| Multiple RM2,000 orders from same buyer | Can be consolidated (each below RM10K) | ✓ Allowed |
Industries most exposed to the RM10,000 rule: construction, wholesale, manufacturing, professional services (legal, accounting, engineering), and any F&B or retail outlet with high-value corporate accounts.
Not sure if your invoices fall under the RM10,000 rule?
WhatsApp us — we'll walk through your billing patterns and tell you exactly what you need.
Phases 1–3 Are Fully Enforced — No Extensions
If your business has annual turnover above RM5 million, the relaxation period does not apply to you. You are in Phases 1, 2, or 3 and are already subject to full enforcement:
| Phase | Turnover | Started | Status |
|---|---|---|---|
| Phase 1 | Above RM100 million | 1 Aug 2024 | Fully enforced |
| Phase 2 | RM25M – RM100M | 1 Jan 2025 | Fully enforced |
| Phase 3 | RM5M – RM25M | 1 Jul 2025 | Fully enforced |
| Phase 4 | RM1M – RM5M | 1 Jan 2026 | Relaxation until 31 Dec 2027 |
| Below RM1M | Under RM1 million | — | Exempt (voluntary) |
What Phase 4 Businesses Should Do Right Now
The extension gives you breathing room — but waiting until 2027 to start is not a strategy. Businesses that implement now avoid the year-end rush, avoid rushed integration costs, and benefit from cleaner financial records from 2026 onwards.
- Check if your current billing software supports MyInvois integration. Most older POS systems and accounting packages do not have this built in. If your software isn't integrated, every invoice you're currently issuing is non-compliant.
- Identify which invoices fall under the RM10,000 rule — these need individual e-Invoice submission immediately, regardless of the relaxation period.
- Register on the MyInvois portal (myinvois.hasil.gov.my) and ensure your TIN is active and your business profile is up to date.
- Choose integrated software — Pospal POS and Autocount Accounting are both fully MyInvois-integrated and used by thousands of Malaysian businesses today.
- Train your team — your cashiers and accounts staff need to understand what a valid e-Invoice submission looks like and how to handle rejected invoices.
Good news for F&B and retail: If most of your transactions are individual B2C sales under RM10,000 — like a restaurant or bubble tea shop — the monthly consolidated e-Invoice option available during the relaxation period greatly simplifies your compliance. Your POS handles the submission automatically.
Software That Handles This Automatically
The right software eliminates the manual work entirely. Both platforms below are fully integrated with MyInvois and actively used by businesses across Malaysia:
Pospal POS System
Built for F&B and retail, Pospal submits e-Invoices to LHDN directly from the cashier interface. For B2C sales, it automatically generates the daily consolidated e-Invoice. For B2B transactions above RM10,000, it issues individual validated e-Invoices. Your staff don't need to understand the technical details — the system handles it.
Autocount Accounting
For businesses that issue invoices to other companies or need full accounts receivable and payable compliance, Autocount's MyInvois integration covers both sides. Issue compliant invoices to clients, record compliant purchase invoices from suppliers, and handle the RM10,000 threshold automatically — all from one accounting dashboard.