Electronic Invoicing Philippines and Electronic Sales Reporting in The Philippines: BIR EIS Solution

Electronic Invoicing & Electronic Sales Reporting in the Philippines 

Electronic Invoicing in the Philippines becomes mandatory for the first group of taxpayers by December 31, 2026, under Revenue Regulations (RR) No. 11-2025 issued by the Bureau of Internal Revenue (BIR). Businesses covered by the mandate will be required to issue structured electronic invoices and submit electronic sales data through the Electronic Invoicing System (EIS). This guide explains who must comply, the implementation timeline, the technical requirements, and how businesses can prepare for successful integration with the BIR.

The move toward mandatory electronic invoicing is part of a broader effort by the Philippine government to modernize tax administration and accelerate the country's digital transformation. In late 2024, the government enacted Republic Act No. 12066, also known as the CREATE MORE (Corporate Recovery and Tax Incentives for Enterprises to Maximize Opportunities for Reinvigorating the Economy) Act. The legislation expands and strengthens the original CREATE Act (Republic Act No. 11534) by introducing a more competitive, transparent, and investment-friendly tax incentive framework designed to attract both domestic and foreign investment.

Supporting this legislative reform, the Bureau of Internal Revenue (BIR) issued Revenue Regulations No. 11-2025 in February 2025, establishing the legal and technical framework for the nationwide rollout of the Electronic Invoicing System (EIS). The regulation introduces new Electronic Invoicing and Electronic Sales Reporting requirements, identifies the taxpayers required to comply, defines the implementation timeline, and outlines the technical specifications for issuing, transmitting, and reporting electronic invoices to the BIR.

Under these regulations, businesses included in the first implementation phase must generate structured electronic invoices and electronically transmit transaction data to the BIR through the Electronic Invoicing System (EIS). The Philippines is adopting a Continuous Transaction Controls (CTC) model based on near real-time reporting, enabling the tax authority to improve transaction visibility, strengthen tax compliance, and support more efficient digital tax administration. This regulatory framework marks one of the country's most significant tax modernization initiatives in recent years. For affected businesses, it will involve implementing secure electronic invoicing processes, integrating business systems with the BIR, and ensuring ongoing compliance as technical requirements continue to evolve.

Who Must Comply with Electronic Invoicing in the Philippines?

Under the implementation timeline established by the Bureau of Internal Revenue (BIR), the first group of taxpayers required to adopt the Electronic Invoicing System (EIS) must comply by December 31, 2026. The initial mandate focuses on businesses with high transaction volumes and organizations that already use digital accounting and invoicing systems.

During this first phase, the Electronic Invoicing and Electronic Sales Reporting requirements apply to:

• Large taxpayers with annual revenues exceeding PHP 1 billion. 
• E-commerce businesses that conduct taxable digital transactions and report them to the BIR. 
• Companies using a Computerized Accounting System (CAS) to manage their accounting and invoicing processes. 
• Businesses registered under the BIR's Large Taxpayers Service (LTS).

At this stage, microenterprises are generally excluded from the mandate. However, the BIR is expected to expand the scope of the Electronic Invoicing System (EIS) in future implementation phases, gradually extending compliance requirements to additional taxpayer groups as the nationwide rollout progresses.

The following table summarizes which businesses are currently required to comply with the Philippine Electronic Invoicing System (EIS) and the applicable implementation deadlines established by the Bureau of Internal Revenue (BIR).

How Does the Electronic Invoicing System Work in the Philippines?

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).

In summary, Electronic Invoicing focuses on the issuance and submission of individual electronic invoices, while Electronic Sales Reporting involves reporting sales transaction data to the Bureau of Internal Revenue (BIR). Although they serve different purposes, both processes are complementary and form an integral part of the Philippines' Electronic Invoicing System (EIS) compliance framework.

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).

Electronic Invoicing vs. Electronic Sales Reporting: What's the Difference?

Although they are often mentioned together, Electronic Invoicing and Electronic Sales Reporting are two distinct compliance requirements under the Bureau of Internal Revenue (BIR)'s Electronic Invoicing System (EIS) in the Philippines.

While both processes are part of the country's Electronic Invoicing System (EIS), they serve different purposes. Electronic Invoicing focuses on the creation and submission of individual electronic invoices, whereas Electronic Sales Reporting provides the BIR with consolidated sales transaction data to support tax monitoring and compliance. Understanding the difference between these two requirements is essential for businesses preparing to comply with the Philippine Electronic Invoicing mandate.

What Is Electronic Invoicing?

Electronic Invoicing is the process of issuing and submitting structured electronic invoices to the Bureau of Internal Revenue (BIR) through the Electronic Invoicing System (EIS). Each invoice must be generated in the required JSON format, digitally signed using a JSON Web Signature (JWS), and transmitted electronically via API integration.

The objective of Electronic Invoicing is to digitize the invoicing process while ensuring the authenticity, integrity, and traceability of every business transaction. Although invoices are submitted to the BIR, they do not require prior approval or validation before being issued, allowing businesses to continue invoicing customers without waiting for tax authority authorization.

What Is Electronic Sales Reporting?

Electronic Sales Reporting complements the electronic invoicing process by requiring businesses to periodically submit sales transaction data to the Bureau of Internal Revenue (BIR). Rather than reporting only an individual invoice, companies must transmit an electronic sales report containing information about transactions completed during the reporting period.

Under the current regulations, sales data must be submitted in JSON or XML format through the Electronic Invoicing System (EIS) no later than three days after the transaction. This near real-time reporting model enables the BIR to improve tax oversight, monitor business activity more effectively, and strengthen compliance through a Continuous Transaction Controls (CTC) framework.

Document Submission Process 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

Implementing the Electronic Invoicing System (EIS) required by the Bureau of Internal Revenue (BIR) involves much more than building a simple technical connection. Businesses must ensure that electronic invoices are generated in the required format, digitally signed, submitted within the prescribed deadlines, and remain compliant as regulatory and technical requirements evolve.

The EDICOM Global Electronic Invoicing Platform integrates seamlessly with leading ERP and business management systems, including SAP, SAP S/4HANA, Oracle, Microsoft Dynamics 365, NetSuite, Infor, and other accounting and billing solutions.

This allows organizations to continue using their existing business systems while EDICOM automatically transforms invoice data into the format required by the Electronic Invoicing System (EIS), applies the required digital signature, and securely transmits electronic invoices and sales data to the Bureau of Internal Revenue (BIR). By automating the entire compliance workflow, businesses can reduce manual effort, improve data accuracy, and maintain continuous compliance with the Philippines' Electronic Invoicing and Electronic Sales Reporting requirements.

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.