KUALA LUMPUR (May 8): The Malaysian Micro Businesses Association (Mamba) has slammed the government’s e-invoicing rules which require online sellers on e-commerce platforms to comply regardless of revenue, saying it unfairly disadvantages online sellers on e-commerce platforms.
Currently, only physical businesses with over RM150,000 in annual revenue need to issue e-invoices. However, online sellers on e-commerce platforms must comply, regardless of revenue, while those with their own websites are exempt if they fall under the threshold.
Mamba in a statement on Thursday said this inconsistency is unfair and adds unnecessary burdens, especially for small, one-person or family-run businesses already facing high costs and weak consumer demand.
Mamba chairman Tan Peng Beng urged the government not to burden micro businesses, many of which are just starting to sell online.
“A recent poll by DARE found that 94.7% of online business owners who are aware of the e-invoicing requirement are calling for an exemption, saying the system is too tedious and unfit for small-scale operations. This is clear proof that micro entrepreneurs are not just overwhelmed — they are actively pushing back.”
The Datametrics Research and Information Centre (DARE) found that 94.7% of online micro business owners want to be exempt from mandatory e-invoicing, saying it is too tedious (87.3%) or confusing (12.7%).
The survey, involving 516 entrepreneurs earning under RM150,000 a year, also showed that only 40.1% were even aware of e-invoicing, highlighting poor outreach ahead of the planned roll-out to all businesses by Jan 1, 2026.
Mamba also pointed out the confusion caused by differing rules for online sellers depending on the platform used. They warned this could discourage more micro businesses from going digital, which goes against the government’s digitalisation goals.
Micro businesses make up 78.7% of Malaysia’s micro, small and medium enterprises (MSMEs), and Mamba stressed that policies must support their growth, especially in the face of economic uncertainty and rising costs.
Source: https://theedgemalaysia.com/node/754486