Malaysia Tightens E-Invoicing Rules for Electricity and Telecom Sectors
Malaysia is refining its e-invoicing framework ahead of upcoming deadlines. On September 12, 2025, the Inland Revenue Board of Malaysia (IRBM) released the E-Invoice Specific Guideline (Version 4.4), which narrows the scope for using consolidated e-invoices.
What's Changing?
Effective January 1, 2026, businesses in two key sectors will no longer be permitted to issue consolidated e-invoices. Instead, they must issue an individual e-invoice for each transaction.
The newly affected activities include:
- Electricity Sector: The distribution, supply, or sale of electricity by service providers.
- Telecommunications Sector: Services related to postpaid plans, internet subscriptions, and the sale of electronic devices.
These industries now join a growing list of specific transactions that require individual e-invoices, such as the sale of motor vehicles, luxury goods, construction materials, and any single transaction valued over RM10,000.
Next Steps for Affected Businesses
Companies operating in the electricity and telecommunications sectors must prepare their systems and processes for this change by the January 1, 2026 deadline. Key adjustments include:
- Data Collection: Ensuring complete buyer information is captured for every individual transaction.
- System Updates: Configuring billing and accounting systems to generate and issue individual e-invoices instead of consolidated summaries.
It's important to note that Malaysia's phased e-invoicing rollout includes a six-month "relaxation period" for each taxpayer group as they are onboarded. During this initial window, businesses can continue to issue consolidated e-invoices, providing a crucial buffer to ensure their systems are fully compliant.
There’s more you should know about e-invoicing in Malaysia – learn more about the new and upcoming regulations.
