BIR sets electronic invoicing rules for Dec. 31 deadline
By Francis Allan L. Angelo
The Bureau of Internal Revenue has issued implementing rules for electronic invoicing ahead of the Dec. 31, 2026, compliance deadline for covered taxpayers.
BIR Commissioner Charlito Martin R. Mendoza said the rules would guide implementation as the agency expands the use of digital systems in tax administration.
“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,” Mendoza said.
According to the BIR release, Revenue Memorandum Circular No. 98-2026, issued Sept. 22, 2026, covers small, medium, and large taxpayers engaged in e-commerce or internet transactions.
It also covers taxpayers under the Large Taxpayers Service and those classified as large taxpayers under the Ease of Paying Taxes framework.
The mandatory coverage includes taxpayers using a computerized accounting system and computerized books of accounts with accounting records and other invoicing software.
Covered taxpayers must issue electronic invoices on or before Dec. 31, 2026.
The BIR said micro taxpayers are outside the mandatory electronic invoicing requirement.
The circular implements Revenue Regulations Nos. 8-2022 and 11-2025, as amended by RR No. 26-2025, according to the release.
The December deadline was already set under RR No. 26-2025, issued Oct. 16, 2025. That regulation extended the compliance period to accommodate operational adjustments, including system reconfiguration and the transition to electronic invoicing.
Taxpayers may use an electronic invoicing solution developed in-house, commercially acquired software, or the services of an Electronic Invoicing Service Provider.
The BIR said it would issue separate rules governing Electronic Invoicing Service Providers within September.
Mendoza clarified that the invoicing requirement is separate from electronic sales reporting, which will be addressed through another set of implementing policies and procedures.
“Electronic invoicing and electronic sales reporting are separate requirements. 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,” Mendoza said.
The final guidelines take effect immediately, according to the release.
They follow the BIR-PMSG public consultation held Aug. 25, 2026, at the BIR National Office.
During the consultation, the bureau discussed the proposed rules with private-sector representatives and received their input on implementation.
“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,” Mendoza said.
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