The Bureau of Internal Revenue (BIR) has issued Revenue Memorandum Circular (RMC) No. 98-2026 on September 22, 2026, prescribing the policies and guidelines for electronic invoicing in the Philippines. The issuance implements the electronic invoicing requirements under Revenue Regulations (RR) Nos. 8-2022 and 11-2025, as amended by RR No. 26-2025, as part of the government’s continuing efforts to modernize tax administration.
Under the Circular, covered taxpayers are required to issue electronic invoices on or before December 31, 2026. These include small, medium, and large taxpayers engaged in e-commerce or internet transactions; taxpayers under the Large Taxpayers Service; large taxpayers under the Ease of Paying Taxes framework; and taxpayers using computerized accounting systems, computerized books of accounts with accounting records, or other invoicing software. Micro taxpayers are exempt from the mandatory requirement.
Covered taxpayers may use an in-house or commercially acquired electronic invoicing system or engage the services of an Electronic Invoicing Service Provider. To qualify as a valid electronic invoice, the invoice must be generated through a duly registered, approved, or accredited system, transmitted to the buyer electronically, and capable of having its data extracted and transmitted to the BIR. Manually prepared invoices using applications such as Microsoft Word, Microsoft Excel, Google Docs, or Google Sheets do not qualify as valid electronic invoices for tax compliance purposes.
The Circular also requires covered taxpayers to secure a Permit to Issue (PTI) Electronic Invoice from the BIR before generating or issuing electronic invoices. Additionally, taxpayers must obtain an Electronic Invoicing and Sales Reporting (EIS) Certification within six months from the issuance of the PTI Electronic Invoice. Failure to secure the certification may result in the revocation of the permit.
The BIR further clarifies that electronic invoicing and electronic sales reporting are separate obligations. Covered taxpayers must comply with electronic invoicing requirements, while electronic sales reporting will be implemented upon the issuance of separate policies and procedures by the Bureau. In cases of system downtime or technical difficulties, taxpayers must issue BIR-authorized manual invoices and replace them with corresponding electronic invoices once the system is restored.
RMC No. 98-2026 took effect immediately upon issuance. Businesses covered by the Circular are encouraged to assess their existing invoicing systems, secure the necessary BIR authorization and certification, and prepare for the December 31, 2026 compliance deadline.
For the complete guidelines, taxpayers may refer to Revenue Memorandum Circular No. 98-2026.
