LHDN Flags Two Common e-Invoice Mistakes Made by Businesses

LHDN has highlighted two common mistakes made by businesses under the e-Invoice system, and said that errors can still be corrected without penalty under a special voluntary disclosure programme running until December 31, 2027.

According to a China Press report on October 21, 2026, an officer from LHDN's e-Invoice policy and compliance unit said the first mistake is that some businesses issue e-Invoices only for transactions related to their inventory, while leaving out other transactions such as the disposal of business assets and rental income.

The second mistake involves self-billed e-Invoices. LHDN said some businesses issue self-billed e-Invoices on behalf of suppliers who are not yet required to implement e-Invoice, although this arrangement only applies to specific transactions set out in the guideline.

LHDN said it has received more than 2.09 billion e-Invoices from over 269,000 taxpayers to date, and its system automatically screens and analyses the data submitted. It added that differences in data patterns do not necessarily mean a taxpayer is non-compliant, as they may arise from account adjustments or differences in filing timing.

Where errors have been made, LHDN said businesses can correct them through the e-Invoice special voluntary disclosure programme (PKPS e-Invois), which offers a full penalty waiver for calculation or paperwork errors until December 31, 2027. The waiver applies provided the matter is handled transparently and does not involve deliberate manipulation.

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