E-Invoice is a digital evidence of a transaction between the supplier and buyer. It enables near real-time validation and replaces the traditional paper and electronic documentation. In line with the Twelfth Malaysia Plan, the Malaysia government is now gearing up for gradually implementation of e-Invoice to digitalize the tax administration in order to support the growth of the digital economy. The Malaysian government has further extended the e-Invoice implementation deadline for small and medium enterprises (SMEs) with annual turnovers ranging from RM500,000 to RM 1million to 1 July 2026. To safeguard its success, it is essential to understand the SMEs’ attitude towards e-Invoice and address the resistance barriers faced by them. Nonetheless, limited empirical evidence addresses the resistance barriers faced by SMEs and how these barriers influence the SMEs’ attitude towards e-Invoice, remains unknown. This study, therefore adopted the innovation resistance theory (IRT) as an underpinning theory, to examine the functional barriers (usage barrier, value barrier, and risk barrier) and psychological barriers (tradition barrier and image barrier) on the SMEs’ attitude towards e-Invoice. With 294 surveys collected from SMEs in Malaysia, noteworthy findings reveal that risk barrier, traditional barrier, usage barrier, and image barrier are matter in influencing the attitude toward e-Invoice adoption except value barrier. Theoretically, the study enriches the existing literature by advancing the IRT on e-Invoice adoption. Practically, the findings offer actionable strategies for government and SMEs to address the significant resistance barriers, thereby improving positive attitude towards e-Invoice adoption and safeguard their successful implementation.