REVENUE REGULATION (RR) NO. 011-2025
his regulation is issued to promulgate Sections 237 and 237-A of the Tax Code specifically on the issuance of electronic invoices, electronic sales reporting and allowable deductions related thereto.
The following terms shall be defined as follows in applying the provisions of these regulations:
| Electronic Invoice (e-Invoice) | A written account evidencing the sale, exchange or transfer of goods, properties, services and/or lease/use of properties in the ordinary course of business using a Bureau of Internal Revenue (BIR) registered software. A system generated invoice that is electronically issued to buyers in a digital format. Provided that, it is a system generated invoice data which can be easily extracted electronically from electronically from the invite and its data can be readily transmitted to the BIR for sales reporting. A photo or scanned copy (in any file format) of a paper invoice (physical/manual copy) is not an electronic invoice |
| Electronic Invoicing | Automated process of generating electronic invoices (e-invoice) in a structured invoice data. This involves the electronic exchange of an invoice that records a transaction between a seller and a buyer. This can be a one-way electronic exchange where seller sends the e-invoice to the buyer |
| Electronic Sales Reporting System | It is an electronic reporting or process for storing, transmitting and/or receiving electronic invoice through a direct data transfer without manual entry to the BIR in a structured eformat, file format or extensible markup language (XML) and other format prescribed by the BIR except for PDF or Image format. The e-invoice shall contain sales information from sellers to buyers and may also contain payment information. |
| Electronic Commerce (e-commerce) | Any commercial transactions conducted through electronic, optical and similar medium, mode, instrumentality and technology. This includes the sale or offer for sale, purchase of physical or digital goods and services or lease or offer for lease of the same, between individuals, household businesses and governments conducted over computer mediated networks through the internet, mobile phones, electronic data interchange (EDI) or other electronic channels through open or close networks. This may be digitally ordered, digitally ordered, digitally delivered or platform-enabled transactions. |
| Internet Transactions | Refers to the sale or offer of sale, or lease or offer for lease of digital or non-digital goods and services over the internet |
All taxpayers enlisted below shall be mandated to comply with this regulation:
| A. Issuance of e-Invoice | A. Issuance of e-Invoice |
| 2 Taxpayers under the jurisdiction of Large Taxpayers Services (LTS); | |
| 3 Large Taxpayers under RA No. 11976 and RR No. 8-2024; | |
| 4 Taxpayers using Computerized Accounting System (CAS) and Computerized Books of Accounts (CBA) with Accounting Records (with electronic invoicing) and other invoicing software; | |
| 5 Upon establishment by the BIR of a system capable of storing and processing the required data to be transmitted to it, the following taxpayers are mandated to issue e-invoices: i. Taxpayer engaged in the export of goods and services; ii. Registered Business enterprise (RBE) availing of tax incentives; iii. Taxpayer using Point-of-Sales (POS) System; and iv. Other taxpayers required by the Commissioner. |
If the taxpayers referenced above are registered as a Branch Office, it is required that both the head office and all branch offices issue e-invoices. All CAS, CBA, and other invoicing software must generate invoices in a structured format that is conducive to electronic extraction and transmission to the BIR for sales reporting.
Invoices produced by CAS, CBA, Point of Sale (POS) systems, Cash Register Machines (CRM), or similar software that are subsequently printed for distribution to buyers—without the capability to electronically report sales and invoice data— will be categorized as traditional, manually issued invoices.
| B. Electronic Sales Reporting Requirements | 1 Taxpayers engaged in e-commerce or internet transactions, classified as Small, Medium and Large Taxpayers; |
| 2 Taxpayers under the jurisdiction of the LTS; | |
| 3 Large Taxpayers under RA No. 11976 (EOPT Act) and RR No. 8-2024*; * Pursuant to RR No. 8-2024, Large Taxpayer shall refer to a taxpayer whose gross sales for a taxable year is One Billion Pesos (₱1,000,000,000.00) and above. Section 4 of the same RR provides that taxpayers shall be duly notified by the BIR of their classification or reclassification, as may be applicable, in a manner or procedure to be prescribed in a separate revenue issuance. | |
| 4 Taxpayers using CAS and CBA with Accounting Records (with electronic invoicing) and other invoicing software; | |
| 5 Taxpayers engaged in the export of goods and services; | |
| 6 RBE availing tax incentives under section 304(D) of the Tax Code, as amended; | |
| 7 Taxpayers using POS System; and | |
| 8 Other taxpayers as required by the Commissioner. |
The taxpayers enumerated above are required to electronically report their sales data to the BIR, subject to the rules and regulations to be issued by the BIR for this purpose. Both head and branch offices are covered by electronic sales reporting.
| C. Taxpayers engaged in e-Commerce | 1 Online business, whether formal or informal, including sale procurement or availment of physical or digital goods, digital content/products, digital financial services, entertainment services, social commerce, ondemand labor and repair services and property and space rental; |
| 2 Operation of digital platforms, including e-marketplace platforms; | |
| 3 Sales and/or lease of goods and services through digital platforms; | |
| 4 Digital content creation and streaming that are income generating including online advertising, blogging/vlogging, subscription or commission; | |
| 5 E-retail goods or services; | |
| 6 Sale of creative or professional services on demand, freelance or digital services supplied over the internet | |
| 7 On-demand services over the internet, available whenever a customer request them, rather than being provided on a fixed schedule as such but not limited to, ride-sharing, food delivery, grocery delivery, home services and streaming environment; | |
| 8 Transport and Delivery Services contracted through an online platform application, website, webpage or other similar platform operated by the provider is authorized to engage in e-commerce in the Philippines; and | |
| 9 Other forms of businesses other than those mentioned above which are conducted online. |
ADDITIONAL ALLOWABLE DEDUCTION
All taxpayers enumerated in table A and B, including those taxpayers who voluntarily complied both with the issuance of e-invoice and electronically report sales data to the BIR shall be granted with the following deduction from their taxable income to a certain percentage of the cost for setting up an electronic sales reporting system as provided below:
| Taxpayer Classification | Allowed Additional Deductions from taxable Income |
| Micro and Small Taxpayers | 100% of the total cost for setting up an electronic sales reporting system. |
| Medium and Large Taxpayers | 50% of the total cost for setting up an electronic sales system. |
PERIOD OF AVAILMENT OF ADDITIONAL ALLOWABLE DEDUCTION
The deduction can only be availed once within the taxable year the electronic sales reporting system has been completed or final payment has been made.
The importation of electronic sales reporting system shall also be exempt from taxes.
EXEMPTION FROM THE MANDATORY REQUIREMENTS TO ISSUE E-INVOICE
All taxpayers classified as Micro Taxpayers under table A(1), A(4), A(5)(i), (iii) and (iv) shall be exempted from the mandatory requirements to use and issue e- invoice. However, this exemption does not preclude Micro Taxpayers who are already using e-invoice. In the absence of an e- invoice Micro taxpayers shall issue a registered manual invoice. They may also use CAS, CRM and POS system in lieu of e-invoices. Non-compliance with the regulation shall be subject to the penalties as defined in Sections 264 and 264-A of the Tax Code.
REGLAMENTARY PERIOD TO COMPLY
| Taxpayer | Reckoning point of Compliance | Compliance to Take |
|---|---|---|
| Table A (1) – (3) | One (1) year from the effectivity of this regulation | E-invoicing requirement |
| Table A (5) (i) –(iv) and Table B | Upon the establishment of a system capable of storing and processing the required data by the BIR | E-invoicing and Electronic Sales Reporting System |