The Bureau of Internal Revenue (BIR) has allowed businesses to build or buy their own electronic invoicing systems ahead of the Dec. 31 mandatory implementation deadline, provided they first secure a Permit to Issue (PTI) Electronic Invoice.
Under Revenue Memorandum Circular No. 098-2026, covered taxpayers may use an in-house electronic invoicing solution, purchase a commercial system or tap an Electronic Invoicing Service Provider (ESP).
The approved system will generate electronic invoices and send them to customers digitally, including through email, QR codes, mobile apps, or online platforms.
The BIR also clarified that invoices manually created using applications such as Microsoft Word, Microsoft Excel, Google Docs, and Google Sheets will not qualify as electronic invoices.
The latest guidelines come as the BIR pushes a major digital tax reform that requires covered businesses to shift to electronic invoicing by the end of the year.
‘With these rules in place, we can now move into implementation and refine the framework as needed. Our goal is to make electronic invoicing workable for taxpayers while laying a stronger foundation for the continued digitalization of tax administration,’ BIR Commissioner Charlie Mendoza said.
‘Electronic invoicing is a huge step toward revolutionizing invoicing and tax administration in the Philippines. It will change how businesses document transactions, how tax information is generated, and how the BIR uses data to build a more modern and efficient tax system,’ he added.
The mandatory requirement covers small, medium, and large taxpayers engaged in e-commerce or internet transactions, excluding micro taxpayers. It also applies to taxpayers under the Large Taxpayers Service, large taxpayers under the Ease of Paying Taxes framework, and taxpayers using computerized accounting or invoicing systems.
But before generating or issuing electronic invoices, taxpayers must secure a PTI from the BIR. The permit serves as authority to issue electronic invoices through their registered and compliant software or system.
Any change in the identity, platform, or core software of the approved system, including migration to or replacement with another system, will require a new or amended PTI.
The BIR also requires covered taxpayers to obtain an Electronic Invoicing and Sales Reporting Certification validating their systems’ ability to extract, process, and transmit sales data according to BIR technical standards.
Taxpayers must secure the certification within six months of the PTI’s issuance.