Philippines' BIR issues e-invoicing IRR, mandates selected taxpayers to comply by year-end

The Philippine Bureau of Internal Revenue has released the implementing rules for electronic invoicing, requiring selected taxpayers to issue e-invoices by 31 Dec 2026. Micro taxpayers are exempt, while those in e-commerce, large taxpayers, and users of computerized accounting systems must comply.

The Philippine Bureau of Internal Revenue (BIR) has issued the implementing rules and regulations (IRR) for electronic invoicing, requiring selected taxpayers to issue electronic invoices by 31 Dec 2026.

“With these rules in place, we can now move into implementation and refine the framework as needed,” BIR Commissioner Charlito Martin R. Mendoza said in a statement on Wednesday. “Our goal is to make electronic invoicing workable for taxpayers while laying a stronger foundation for the continued digitalization of tax administration.”

Revenue Memorandum Circular No. 98-2026 requires small, medium and large taxpayers engaged in e-commerce or internet transactions to issue electronic invoices by the end of the year. Micro taxpayers are exempt. The requirement also covers taxpayers overseen by the Large Taxpayers Service, large taxpayers as classified by the Ease of Paying Taxes Act, and those using computerized accounting systems, computerized books of account or other invoicing software.

Invoices manually created using Microsoft Word, Excel, Google Docs or Google Sheets will not qualify as electronic invoices for tax purposes. Printed invoices from computerized accounting or point-of-sale systems will also not qualify if they cannot be issued electronically to buyers and reported to the BIR.

Taxpayers may use their own systems, commercial software or an Electronic Invoicing Service Provider. The BIR said separate rules for service providers will be issued within the month. Covered taxpayers must also obtain a Permit to Issue Electronic Invoices from the BIR beforehand.

“For now, taxpayers should focus on complying with the electronic invoicing rules. Electronic sales reporting will follow once the BIR issues the separate implementing policies and procedures for it,” Mr. Mendoza said. The circular also allows taxpayers to use BIR-authorized manual invoices during system downtime, internet or power outages, and cybersecurity incidents. Other taxpayers may voluntarily adopt electronic invoicing after obtaining a permit from the BIR.