Electronic invoice in the Philippines: Electronic Invoicing System – EIS

E-Invoicing in the Philippines

The Philippines is moving forward with the implementation of the new electronic invoicing system known as the Electronic Invoicing System (EIS). The Bureau of Internal Revenue (BIR) is responsible for the mass adoption of e-Invoicing in the country.

At the end of 2024, the government enacted Republic Act 12066 (known as CREATE MORE), which amended the original CREATE Act. The CREATE MORE law transforms the Philippines into an attractive business destination by making the tax incentive system more competitive, investment-friendly, predictable, and transparent at a global level. The BIR issued Revenue Regulation No. 011-2025 in February 2025, establishing new requirements for electronic invoicing and digital sales reporting in the Philippines.

The deadline for adopting the Electronic Invoicing System (EIS) set by the Bureau of Internal Revenue (BIR) stipulates that the first group of taxpayers required to comply must do so by December 31, 2026.

The first taxpayers affected include:

• Large taxpayers with annual revenue exceeding one trillion Philippine pesos
• E-commerce companies
• Companies with CAS (Computerized Accounting Systems)
• Companies under the Large Taxpayers Service.

Microenterprises are generally excluded from the initial mandate.

The extension of the timeline until the end of 2026 aims to allow for a more gradual and controlled implementation, ensuring that companies have sufficient time to adapt their technological systems, train their staff, and guarantee data interoperability with the Philippine tax administration.

Further details, including final technical specifications, are expected in the coming months.

Proposed Timeline

The rollout of the electronic invoicing system in the Philippines is being carried out in phases, with different adoption stages to help businesses adapt to the new digital model.

• 2018: The passage of the TRAIN Act establishes the legal framework for the implementation of electronic invoicing in the country.
• 2022: Launch of the Electronic Invoicing System (EIS) pilot program with a limited group of large taxpayers.
• 2025: Publication of new regulations and expansion of the system’s scope. 
• December 31, 2026: Deadline for the first group of mandated businesses to implement the e-invoicing system.

How does the new electronic invoicing system in the Philippines work?

The Electronic Invoicing System (EIS) is the Philippine government’s electronic platform designed to receive, process, and store sales data submitted by taxpayers from their electronic invoices and receipts. These documents are generated from taxpayers’ business systems, such as CAS (Computerized Accounting Systems), POS, or invoicing software, and are transmitted to the Bureau of Internal Revenue (BIR).

The system includes various accounting documents issued electronically via the Internet, such as sales invoices, official receipts, credit notes, debit notes, and other similar documents.

A tax control model with near real-time reporting

The Philippines applies a post-audit model with near real-time reporting, in which invoices do not require prior approval by the tax authority.

This means that:

• There is no pre-authorization of invoices.
• Companies issue the invoice first and then transmit the data to the BIR.
• The information must be sent in real time or within a maximum of three days of the transaction.

This model is part of the Continuous Transaction Controls (CTC) systems and shares similarities with the system implemented in South Korea, a country that has collaborated on the project’s development through the Korea International Cooperation Agency (KOICA).

Components of the electronic invoicing system

The e-Invoicing system in the Philippines is based on two main elements:

Structured electronic invoices

Companies covered by the mandate must issue electronic invoices in structured JSON format, applying a digital signature (JSON Web Signature). These invoices are transmitted to the BIR via API, where the tax administration returns a response of acceptance or rejection.

Although invoices are sent to the tax authority, the system does not require pre-validation prior to issuance.

Electronic Sales Reporting

In addition to issuing electronic invoices, companies must submit a report to the BIR listing transactions conducted over the past three days. This report is transmitted in JSON or XML format, allowing the tax authority to monitor business operations in near real time.

Document Submission Workflow to the BIR

Documents must be transmitted to the Bureau of Internal Revenue via real-time or near-real-time API integration. In any case, submission must occur no later than three days after the transaction.

Information exchange with the BIR is conducted in JSON format, using a JSON Web Signature digital signature that guarantees the document’s authenticity and integrity.

Mandatory information on the electronic invoice

Electronic invoices must include a series of mandatory data, including:

• Document number
• Issue date
• Unique identification number linked to the document
• Seller information
• Buyer information
• Details of the goods or services sold
• Transaction amount
• Applicable VAT
• Discounts applied

EDICOM’s Global Electronic Invoicing Platform: Ensuring Compliance in the Philippines

Businesses subject to this regulation must ensure their invoices are formatted correctly, signed digitally, and submitted in compliance with BIR standards. EDICOM’s Global Electronic Invoicing Platform streamlines this process, ensuring companies operating in the Philippines can meet regulatory requirements with ease.

The EDICOM platform serves as a fully integrated solution that connects seamlessly with a company’s Enterprise Resource Planning (ERP) system, automating invoice transformation, validation, and submission to the BIR. The process follows these key steps:

Receiving and Transforming Invoices

When an invoice is generated in a company’s ERP, EDICOM’s platform captures the document in its original format. Since the BIR requires invoices in JSON format under the EIS framework, the platform automatically converts the invoice data to align with the mandated structure, ensuring full compliance.

Applying the Electronic Signature

To ensure data authenticity and security, the EDICOM platform applies a digital signature to the invoice. This step is essential in the Philippines, as the BIR mandates the use of electronic signatures to validate that invoices are legitimate and have not been altered after issuance.

Submission to the BIR’s EIS System

EDICOM automates the submission process by regularly scanning for new invoices that need to be sent to the BIR. Once validated, the invoices are automatically transmitted to the BIR’s Electronic Invoicing/Receipting System (EIS) for approval. This process eliminates manual errors and ensures real-time compliance with Philippine tax regulations.

Automated PDF Invoice Generation and Customer Notification

For businesses required to provide customers with PDF invoices, EDICOM offers an automated solution. The platform generates a PDF version of the invoice and securely publishes it for the recipient. An email notification is also sent, allowing the customer to download the invoice seamlessly. This eliminates the need for manual email distribution and ensures that invoices are delivered in a timely manner.

Why Companies in the Philippines Choose EDICOM?

EDICOM’s Global Electronic Invoicing Platform is tailored to meet the unique e-invoicing requirements of the Philippines, helping businesses remain compliant while optimizing their invoicing processes. Key benefits include:

• Seamless ERP Integration: The platform integrates with existing ERP systems, reducing manual input and minimizing errors.
• BIR Compliance: EDICOM ensures compliance with the BIR’s EIS framework, including required formats and electronic signature standards.
• Real-Time Automation: Invoice transformation, validation, and submission occur automatically, reducing administrative burden.
• Secure Digital Transactions: The use of digital signatures ensures the security and authenticity of each transaction.
• Efficient Invoice Distribution: Customers receive timely notifications and access to their invoices through a secure online portal.

By implementing EDICOM’s platform, businesses in the Philippines can confidently navigate the complexities of the country’s e-invoicing regulations while improving operational efficiency and reducing compliance risks.