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About

General

About

General

Regulated by the Bureau of Internal Revenue (BIR) under the Tax Reform for Acceleration and Inclusion (TRAIN) Act. Aims to enhance tax compliance, reduce fraud, and increase transparency in business transactions.

Implementation of mandatory e-invoicing in the Philippines

The Philippines is phasing in mandatory e-invoicing under the direction of the Bureau of Internal Revenue (BIR) as part of its digital transformation strategy and commitment under the TRAIN law (Tax Reform for Acceleration and Inclusion):

July 1, 2022: The BIR launched its EIS (Electronic Invoicing System) with a pilot program involving the top 1000 large taxpayers. Participants were required to transmit electronic sales data — including invoices, receipts, and credit/debit notes — in near real time to the BIR. The system is integrated with an online platform for validation and monitoring.
July 1, 2023: E-invoicing became mandatory for exporters, e-commerce businesses, large taxpayers covered by the pilot.These groups are now obliged to use the e-invoice transmission system and generate invoices in a format compliant with the EIS requirements. Submission of transaction data to the BIR is required either in real time or by the next business day.
Planned next steps: The BIR plans to expand mandatory e-invoicing to a broader base of VAT-registered businesses in the coming years. However, no official universal rollout date has been announced. The system’s stability, onboarding readiness, and legislative amendments will influence the timeline.

Who needs e-invoices in Philippines?

E-invoicing in the Philippines is required for:

Large Taxpayers: Entities classified as large taxpayers by the BIR.
Exporters: Required for businesses exporting goods or services.
VAT-Registered Businesses: Planned expansion to all VATregistered entities by 2025.
Non-Resident Businesses: Required for taxable transactions if VAT-registered in the Philippines.

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E-Invoicing vs. E-Billing

Aspect	E-Invoicing	E-Billing
Purpose	Compliance with BIR regulations	Informal or customer-facing transactions
Format	Real-time via EIS	Not validated
Usage	XML-based format via EIS	Flexible, non-regulated formats
Archiving	Required for 10 years	Optional

Key features of the Philippines’ e-invoicing system

The Philippines’ e-invoicing system involves:

Submission via EIS: Invoices must be submitted in XML format through the BIR’s EIS platform.
Validation: The BIR validates invoices and assigns a unique Invoice Reference Number.
Archiving: E-invoices must be digitally stored for 10 years as per tax laws.

E-Invoicing dataset

E-invoices in the Philippines include the following critical data:

Buyer/Seller IDs: Taxpayer Identification Numbers (TIN).
Invoice Details: Number, date, and payment terms.
Goods/Services: Descriptions, quantities, unit prices, and VAT details.
Taxes: Applicable VAT rates and amounts.
Transaction Info: Total payable amount, currency, and payment method.
Digital Signature: Ensures authenticity and integrity of the invoice.

E-invoicing across transaction types

B2B Transactions:

Mandatory for VAT-registered businesses to ensure compliance with tax regulations.
E-invoices streamline VAT refunds and facilitate efficient record-keeping.

B2C Transactions:

Not mandatory but encouraged for improved transparency and customer trust.

B2G Transactions:

E-invoicing is mandatory for transactions with government entities to ensure compliance and transparency.

Penalties for non-compliance

Non-compliance with the Philippines’ e-invoicing regulations may result in:

Fines: PHP 10,000–100,000 (€160–€1,600) per violation.
Operational Challenges: Rejected invoices can disrupt payments and business operations.
Legal Risks: Increased audits and reputational damage for repeated violations.

Stay ahead of the e-invoicing regulations with our easy-to-use platform. Book a free demo today and see how we can help you streamline your invoicing process while ensuring full compliance with Philippines e-invoicing laws.

April 15, 2025 262