News & Updates

The Bureau of Internal Revenue (BIR) issued Revenue Memorandum Circular (RMC) No. 098-2026 prescribing the Policies and Guidelines on the Issuance of Electronic Invoice for the following taxpayers (collectively, the “Covered Taxpayers”):

1. Taxpayers engaged in e-commerce or internet transactions, classified as Small, Medium and Large Taxpayers (Micro Taxpayers are exempted);
   
   
2. Taxpayers under the jurisdiction of the Large Taxpayers Service;
   
   
3. Taxpayers classified as Large Taxpayers under Republic Act No. 11976, otherwise known as the Ease of Paying Taxes (EOPT) Act, and Revenue Regulations No. 8-2024;
   
   
4. Taxpayers using Computerized Accounting System (CAS) and Computerized Books of Account (CBA) with Accounting Records (with electronic invoicing) and other invoicing software; and
   
   
5. Other taxpayers required by the Commissioner of Internal Revenue.

The RMC requires Covered Taxpayers to adhere to the following policies and guidelines:

1. All taxpayers, except those classified a Micro Taxpayers, are required to issue electronic invoices by 31 December 2026.
   
   
2. The obligation to issue electronic invoices shall be separate and distinct from the obligation to comply with electronic sales reporting.
   
   
3. Taxpayers have the option to use an in-house or commercially acquired electronic invoicing solution or avail of services offered by an Electronic Invoicing Service Provider.
   
   
4. An invoice shall be considered an electronic invoice only if it satisfies all the following requirements:
   
   a. It is generated by a duly registered, approved, or accredited accounting/invoicing software or system in a structured electronic format;
   
   b. It is electronically generated and transmitted to the buyer, purchaser, or client in digital format through any of the following means: email, online viewing, QR Code, mobile applications, web-based platforms, or other electronic means; and
   
   c. The invoice data contained therein is capable of being electronically extracted, processed, and transmitted to the BIR for electronic sales reporting purposes.
   
   
5. Invoices generated by a CAS, CBA with Accounting Records (with electronic invoicing), POS System, or other accounting/invoicing software or system, and subsequently printed on paper for issuance to buyers, shall not be considered electronic invoices if the system is not capable of electronically issuing and transmitting the invoice to the buyer and electronically transmitting or reporting the required sales data to the BIR.
   
   
6. Electronic invoices shall be in a structured electronic format.
   
   
7. Electronic invoices may be printed and furnished to the buyer, purchaser or customer, for reference or record-keeping purposes.
   
   
8. Any correction or adjustment to an issued electronic invoice shall be made through a separate document that references the original electronic invoice.
   
   
9. Taxpayers not mandatorily required to comply with the electronic invoicing requirements may voluntarily adopt electronic invoicing after securing a Permit to Issue (PTI) Electronic Invoices from the concerned Revenue District Office.
   
   
10. The electronic invoicing requirements apply to the taxpayer as a whole. In other words, both the head office and branch office/s shall be mandated to issue electronic invoices regardless of whether the covered activity is undertaken at a particular branch.
    
    
11. In the event of system downtime, system unavailability, technical malfunction, internet connectivity issues, power interruption, cybersecurity incidents, force majeure events, or other circumstances that prevent the generation or issuance of an electronic invoice, the taxpayer shall issue a manual invoice duly authorized by the BIR to document the transaction. Upon system restoration, all manually issued invoices shall be replaced with the corresponding electronic invoices bearing the reference numbers of the manual invoices.
    
    
12. Covered Taxpayers shall secure a PTI Electronic Invoice from the BIR prior to the generation or issuance of electronic invoices.
    
    
13. A PTI Electronic Invoice shall be issued to the head office and each separate branch, all bearing the same PTI Electronic Invoice number and indicating the branch to which the PTI Electronic Invoice pertains.
    
    
14. Electronic invoice generated through registered/approved/accredited software or system with PTI Electronic Invoice, whether issued electronically and/or subsequently printed, shall be recognized as a valid proof of transaction for taxation purposes and substantiation requirements.
    
    
15. Covered Taxpayers shall obtain an Electronic Invoicing and Sales Reporting (EIS) Certification to validate the capability of their electronic invoicing systems to electronically extract, process, and transmit sales data within six (6) months from the issuance of the PTI Electronic Invoice. Failure to do so shall constitute a ground for the revocation of the PTI Electronic Invoice.
    
    
16. Covered Taxpayers shall continue to comply with the applicable electronic invoicing notwithstanding any subsequent change in their classification under the EOPT framework unless expressly reclassified or exempted by the BIR through a separate issuance.