If you are running a hardware shop, building material retailer or construction material wholesaler, there is an important e-Invoice update you should be aware of.
From 1 January 2026, consolidated e-Invoices are allowed for the wholesale and retail sector of building materials.
This provides greater flexibility for businesses that handle a large number of smaller transactions every day.
But there are still situations where an individual e-Invoice is required.
What has changed?
Previously, businesses in the wholesale and retail building materials sector faced restrictions on issuing consolidated e-Invoices.
Effective 1 January 2026, HASiL allows businesses in this sector to issue consolidated e-Invoices for eligible transactions.
In simple terms, instead of issuing an individual e-Invoice for every small sale, eligible transactions can be consolidated and reported through a consolidated e-Invoice.
However, this does not mean that every transaction can automatically be consolidated.
When is an individual e-Invoice required?
For building material businesses, an individual e-Invoice is required when:
1. The transaction exceeds RM10,000
Effective 1 January 2026, a single transaction exceeding RM10,000 cannot be included in a consolidated e-Invoice.
An individual e-Invoice must be issued for that transaction.
2. The buyer requests an e-Invoice
Even where the transaction is RM10,000 or below, if the buyer requests an e-Invoice, the seller should issue an individual e-Invoice.
This is particularly relevant for business customers who require an e-Invoice for their accounting, tax or record-keeping purposes.
What happens to smaller transactions?
Where the transaction is RM10,000 or below and the buyer does not request an e-Invoice, the business may issue a receipt and subsequently include eligible transactions in a consolidated e-Invoice.
The consolidated e-Invoice should be submitted to HASiL within seven calendar days after the end of the month.
For businesses with many daily walk-in customers, this can significantly simplify the invoicing process.
Example
Imagine a building material retailer makes the following sales:
- Customer A – RM500
- Customer B – RM2,000
- Customer C – RM8,500
- Customer D – RM12,000
Assuming the customers do not request individual e-Invoices:
Customer A, B and C
These transactions may generally be included in a consolidated e-Invoice, subject to the applicable requirements.
Customer D
Because the single transaction exceeds RM10,000, an individual e-Invoice is required.
The RM10,000 threshold therefore needs to be monitored transaction by transaction.
What businesses should watch out for
The new flexibility does not mean businesses can simply consolidate everything.
Businesses should review their sales process and make sure their accounting or POS system can identify:
- Individual transactions exceeding RM10,000
- Customers requesting e-Invoices
- Transactions eligible for consolidation
- The correct e-Invoice classification
- Monthly consolidated e-Invoice submission requirements
- Customer information where an individual e-Invoice is required
This is especially important for businesses using POS systems where thousands of small transactions may be recorded every month.
What about the definition of construction materials?
Another important point is that businesses should not assume that every product sold by a hardware or building material shop automatically qualifies as “construction materials.”
HASiL’s classification code 005 – Construction materials refers to construction materials specified under the Fourth Schedule of the Lembaga Pembangunan Industri Pembinaan Malaysia Act 1994.
Therefore, businesses should review the products they sell and ensure that the appropriate classification is used when issuing e-Invoices.
Don’t confuse this with construction contractors
There is also a separate set of e-Invoice considerations for construction contractors.
For example, construction contracts, progress claims and transactions involving contractors and subcontractors may have different e-Invoice treatments.
The Specific Guideline separately identifies construction contractors undertaking construction contracts as an activity where consolidated e-Invoices are not allowed for those relevant transactions.
Therefore, a construction material retailer and a construction contractor should not automatically apply the same e-Invoice treatment.
What should construction material businesses do now?
If you operate a wholesale or retail building material business, now is a good time to review your invoicing process.
Check these 5 things:
- Review your products
Identify which products fall within the relevant construction material classification.
- Review your sales transactions
Make sure your system can identify transactions exceeding RM10,000.
- Establish a process for e-Invoice requests
Staff should know what to do when a customer asks for an e-Invoice.
- Check your POS or accounting system
Your system should be able to distinguish between individual e-Invoices and transactions that can be consolidated.
- Review your monthly consolidation process
Make sure eligible transactions are properly consolidated and submitted within the required timeline.
The takeaway
The 2026 update gives wholesale and retail building material businesses more flexibility in managing their e-Invoice obligations.
However, businesses still need to know when consolidation is permitted and when an individual e-Invoice is compulsory.
The key points to remember are:
From 1 January 2026:
- Consolidated e-Invoices are allowed for the wholesale and retail building materials sector.
- A single transaction exceeding RM10,000 requires an individual e-Invoice.
- An individual e-Invoice is also required when requested by the buyer.
- Eligible smaller transactions can be consolidated.
- Consolidated e-Invoices should be submitted within seven calendar days after month-end.
- Businesses should ensure the correct construction material classification is used.
If you are operating a hardware, building material or construction material business, it is worth reviewing your current invoicing and POS process to make sure it matches the latest e-Invoice requirements.
This article is prepared based on information published by HASiL, including the latest e-Invoice Guidelines and Specific Guidelines available as at August 2026. Businesses should refer to the latest HASiL guidance for their specific circumstances.