BIR Launches Upgraded E-Invoicing System: Covered Taxpayers Must Issue E-Invoices by Dec. 31, 2026

The Bureau of Internal Revenue (BIR) launched its enhanced Electronic Invoicing and Sales Reporting System (EIS) on Tuesday, October 27, 2026, the Philippine News Agency (PNA) reported. The EIS is a web-based facility that taxpayers can use to issue electronic receipts or invoices. The launch comes as covered taxpayers face a December 31, 2026 deadline to start issuing electronic invoices under Revenue Memorandum Circular (RMC) No. 98-2026.

Micro taxpayers are not covered by the December 31, 2026 requirement.

What the BIR launched

• An enhanced EIS. The BIR launched the enhanced electronic invoicing and sales reporting system on October 27, 2026. It is a web-based facility that taxpayers can use to issue electronic receipts or invoices (PNA).
• Legal basis. The EIS implements Sections 237 and 237-A of the National Internal Revenue Code, as amended by Republic Act No. 10963 or the TRAIN Law (PNA).
• Built with Korean support. In July 2026, the Korea International Cooperation Agency (KOICA) turned over the enhanced EIS to the BIR after a 14-month technical assistance project. Enhancements include automatic invoice matching and validation (BusinessWorld).

Who must issue e-invoices by December 31, 2026

RMC No. 98-2026, dated September 22, 2026, requires the following taxpayers, except those classified as micro taxpayers, to issue electronic invoices on or before December 31, 2026:

• Small, medium and large taxpayers engaged in e-commerce or internet transactions;
• Taxpayers under the jurisdiction of the Large Taxpayers Service (LTS);
• Taxpayers classified as large taxpayers under the Ease of Paying Taxes (EOPT) Act (RA 11976) and Revenue Regulations No. 8-2024;
• Taxpayers using a Computerized Accounting System (CAS) or Computerized Books of Accounts (CBA) with accounting records (with electronic invoicing), and other invoicing software; and
• Other taxpayers as may be required by the Commissioner of Internal Revenue.

Taxpayers who are not covered may voluntarily issue electronic invoices instead of manual invoices, provided they secure a Permit to Issue (PTI) Electronic Invoice from their Revenue District Office (RMC No. 98-2026).

For businesses with branches, the requirement applies to the taxpayer as a whole. The head office and all branch offices must issue electronic invoices, regardless of whether the covered activity is done at a particular branch.

What counts as an electronic invoice

Under RMC No. 98-2026, an invoice is an electronic invoice only if it meets all three of these requirements:

1. It is generated by a duly registered, approved or accredited accounting or invoicing software or system in a structured electronic format;
2. It is generated and sent to the buyer in digital format, such as by email, online viewing, QR code, mobile app, web-based platform or other electronic means; and
3. Its data can be electronically extracted, processed and transmitted to the BIR for electronic sales reporting.

Invoices made manually using office apps such as Microsoft Word, Microsoft Excel, Google Docs or Google Sheets are not valid electronic invoices. Invoices printed from a CAS, CBA or POS system are also not considered electronic invoices if the system cannot issue them electronically and report the sales data to the BIR.

Buyers may still get paper copies. A printed copy of the electronic invoice must be given to the buyer upon request.

E-invoicing vs. electronic sales reporting

RMC No. 98-2026 says the obligation to issue electronic invoices (Section 237 of the Tax Code) is separate and distinct from electronic sales reporting (Section 237-A). Covered taxpayers will have to comply with electronic sales reporting only once the BIR issues the implementing policies, guidelines and procedures for it. The Permit to Transmit (PTT) will likewise be required only upon notice or directive from the Commissioner.

What covered taxpayers need to do

• Choose an e-invoicing solution. You may use an in-house or commercially acquired electronic invoicing solution, or the services of an Electronic Invoicing Service Provider (ESP). Under RMC No. 110-2026, ESP systems must be accredited by the BIR before they can be used for taxpayer transactions (The Manila Times).
• Secure a PTI Electronic Invoice. Apply at the Revenue District Office (RDO) or Large Taxpayer (LT) Office where you are registered, with the required documents. The BIR will evaluate the application within 20 working days from receipt of complete documents.
• Get EIS Certification within six months. After your PTI is issued, you have six months to secure an EIS Certification, which validates that your system can extract, process and transmit sales data. Failure to do so is a ground for revoking the PTI. The certification portal is at eis-cert.bir.gov.ph.
• Prepare for downtime. If your system is down, issue a BIR-authorized manual invoice. Once the system is restored, replace it with an electronic invoice that references the manual invoice number.
• Correct invoices properly. Issued electronic invoices may not be deleted or altered. Decreases are made through a credit note or memo, and increases through a new electronic invoice.

What the BIR Commissioner said

“Our objective is for digitalization to make it easier for taxpayers to comply with the law, not to create additional burdens for those already complying,” BIR Commissioner Charlito Mendoza said, according to PNA.

Mendoza said electronic invoicing reduces paperwork, repetitive manual encoding, administrative costs and record-keeping errors. “Equally important, electronic invoicing provides a clearer and more reliable audit trail. This strengthens the protection of compliant taxpayers against fraudulent invoices, questionable transactions, and unnecessary disputes arising from incomplete or inconsistent records,” he added.

FAQs

Are micro taxpayers required to issue e-invoices by December 31, 2026?

No. RMC No. 98-2026 excludes taxpayers classified as micro taxpayers from the December 31, 2026 requirement. They may still voluntarily adopt e-invoicing after securing a PTI Electronic Invoice.

Can I make my e-invoice in Excel or Google Sheets?

No. Invoices created manually in Word, Excel, Google Docs, Google Sheets or similar apps are not valid electronic invoices for tax compliance purposes.

Do I need to report my sales electronically to the BIR now?

Not yet under RMC No. 98-2026. Electronic sales reporting will apply only after the BIR issues separate implementing guidelines. However, your e-invoicing system must already be capable of extracting and transmitting sales data, and you must secure EIS Certification within six months of getting your PTI.

Can my customer still get a printed invoice?

Yes. A printed copy of the electronic invoice must be given to the buyer upon request.

Related: BIR suspends mandatory display of Registration Seal Badge

Sources

• Philippine News Agency: BIR launches enhanced electronic invoicing (Oct. 27, 2026)
• BIR: Revenue Memorandum Circular No. 98-2026 (PDF)
• BIR EIS Certification Portal
• The Manila Times: BIR requires accreditation for e-invoicing systems (Oct. 15, 2026)
• BusinessWorld: BIR wraps up Korea-aided electronic invoicing project (July 9, 2026)
• Conventus Law: BIR Issues Policies and Guidelines on the Issuance of Electronic Invoice

Disclaimer

The information provided on this website is for informational purposes only and does not constitute an endorsement or affiliation with any government agency. 

While we strive to provide accurate and up-to-date information, we cannot guarantee the completeness of the content nor ensure that all details are current. For any concerns, you can contact us anytime.

For Job Postings: We are not a government entity, and the job listings on this site are presented solely to assist individuals in their job search efforts or the job posting on this website. Users can verify the details of any job listing directly with the respective government agency.