The Philippines Bureau of Internal Revenue (BIR) issues Revenue Memorandum Circular (RMC) No. 098-2026 on September 22, 2026. The circular finalizes the policies and guidelines for electronic invoice issuance as first prescribed in legislation in 2018, with its implementation timeline and scope revised in subsequent legislation.
Covered taxpayers must issue electronic invoices on or before December 31, 2026. Coverage extends to large taxpayers, taxpayers under the Large Taxpayers Service, taxpayers engaged in e-commerce or internet transactions, and taxpayers using a computerized accounting system (CAS) or computerized books of accounts (CBA) with electronic invoicing capability. Micro taxpayers are exempt.
An electronic invoice must meet three conditions:
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A registered or accredited system generates it in a structured electronic format.
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The taxpayer transmits it to the buyer electronically, through email, online viewing, a Quick Response (QR) code, a mobile application, or a web-based platform.
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The taxpayer’s system extracts and transmits the underlying invoice data to the BIR for sales reporting purposes when required.
Taxpayers must secure a new “Permit to Issue (PTI) Electronic Invoice” from the BIR before generating any electronic invoice. The BIR evaluates a complete PTI application within twenty working days. Taxpayers not required to comply with the mandate may still adopt electronic invoicing voluntarily after obtaining a PTI.
The e-invoicing obligation and the electronic sales reporting obligation under Section 237-A of the Tax Code remain legally separate. Taxpayers must comply with electronic sales reporting only after the BIR issues separate implementing rules for that requirement.
To learn more about Philippines VAT Requirements, visit our Sovos dedicate webpage.
