Does a shop landlord need to issue e-invoices in 2026?

Most individual shop landlords do not need to issue e-invoices in 2026. LHDN exempts taxpayers whose annual turnover is below RM3 million and who meet its criteria. An individual who lets a shop without conducting a business does not issue e-invoices at all; if the tenant is a business, the tenant issues a self-billed e-invoice for the rent. Company landlords and larger owners above RM3 million follow LHDN's phased start dates.

This is general information, not legal or tax advice. Confirm your own position with a tax agent.

LHDN's e-Invoice General FAQs (updated 4 Sep 2026) list the phases by annual turnover:

For taxpayers up to RM5m, LHDN gives an interim relaxation period that runs until 31 Dec 2027 (FAQ Q113).

Taxpayers with annual turnover below RM3m who meet the criteria are exempt from e-invoicing, including from the self-billed requirement (LHDN FAQ). The threshold used to be RM1m. The RM3m figure came with e-Invoice General Guideline v4.8 (30 Aug 2026), as summarised by jomeinvoice.my (Oct 2026). Related companies, holding companies and joint-venture companies with revenue of RM3m or more are excluded from the exemption.

Many websites still quote RM150,000 or RM1m. Those figures are out of date.

LHDN also sets timing for businesses that cross RM3m:

• Reached RM3m in YA2023 to YA2025: concessionary start date of 1 Jul 2026.
• Reach RM3m in YA2026 or later: start on 1 January of the second year after, for example 1 Jan 2028.

The guideline does not give a separate "effective date" for the RM3m exemption itself, so check with your tax agent how it applies to your year of assessment.

This is the question that decides most cases. LHDN FAQ Q62 says:

• An individual landlord who conducts a business must issue e-invoices, subject to the turnover phases and exemption above.
• An individual landlord who does not conduct a business does not issue e-invoices. If the tenant is a business, the tenant issues a self-billed e-invoice for the rent paid.

Whether your letting counts as a business depends on facts such as how many properties you own and what services you provide. Your tax agent can tell you how LHDN is likely to see it.

One caution. It is tempting to assume that a small tenant under RM3m never needs to self-bill. That is an inference, not a rule LHDN has stated in those words. If you are a tenant paying rent to an individual landlord, ask your tax agent.

• Work out your annual turnover across all businesses, not just rent.
• Decide with your tax agent whether your letting is a business.
• If your tenant is a company, tell them in writing whether you will issue e-invoices or whether they should self-bill.
• Keep tenancy agreements, rent receipts and stamping records together. They support whatever position you take.
• Put a reminder in your calendar for 31 Dec 2027, when the interim relaxation for taxpayers up to RM5m ends.

Not directly. It changes paperwork, not market rent. What tenants compare is the total cost of a shop, which includes any service tax. Note that service tax on rent is a separate rule: it is 6% from 1 Jan 2026 and applies only to landlords whose taxable rent reaches RM1m in 12 months. See service tax on shop rent in 2026.

For pricing, read how much rent to ask for your shop lot and test your return with the rental yield calculator.

Ask the seller how rent has been documented: invoices, receipts or self-billed e-invoices from the tenant. Clean records make it easier to verify the income you are paying for. Our guide to tenanted or vacant shop lots lists the other documents to check. Terms you do not know, such as "self-billed", are explained in our glossary, and the landlord page covers how we help owners.

This is general information, not legal or tax advice. LHDN updates its FAQ often, so check the latest version or ask your tax agent.

Written by Tok Ginstee (REN 37505), CID Realtors Sdn Bhd (E (1) 1855). Updated November 2026.