Kuala lumpur: Micro, small, and medium enterprises (MSMEs) will not face any penalties for non-compliance with e-invoicing requirements during the transition period, provided they adhere to the specified guidelines.

According to BERNAMA News Agency, the Ministry of Finance (MOF) stated in a written reply published on Parliament's website today that during this period, businesses are allowed to take certain steps. These include issuing consolidated e-invoices for all activities and transactions, as well as consolidated self-billed e-invoices for all self-billed transactions.

The ministry further clarified that businesses are permitted to include transaction descriptions in the 'Product or Service Description' field. If a buyer requests an e-invoice, the business may issue a consolidated e-invoice without having to generate separate e-invoices for each transaction.

The MOF's statement was in response to a query from Chong Chieng Jen (PH-Stampin) regarding leniency for companies that have entered incorrect data, as many MSMEs are still in the early stages of implementing the e-invoicing system.

Additionally, the MOF announced that the government has introduced further facilitation measures for Phase 4 of the e-invoicing implementation. This phase, which began on January 1, 2026, grants businesses an extended 12-month transition period, from January 1 to December 31, 2026, compared to the previous six-month transition period in earlier phases.