REVENUE MEMORANDUM CIRCULAR (RMC) NO. 98-2026
I. PURPOSE
This Circular prescribes the policies and guidelines on the issuance of electronic invoices in accordance with Section 237 of the National Internal Revenue Code (Tax Code), as implemented under RR No. 8-2022, RR No. 11-2025, and RR No. 26-2025.
II. DEFINITION OF TERMS
| Terms | Definition |
| Computerized Accounting System (CAS) | An integrated system that electronically records and processes accounting transactions, from invoice issuance to the generation of accounting records and financial reports. |
| Credit Note/Memo | A document issued to reduce or cancel an invoice amount due to returns, allowances, discounts, overbilling, or similar adjustments. |
| Electronic Commerce (e-Commerce) | The buying, selling, leasing, or exchange of goods and services through electronic platforms such as the internet, mobile applications, and other digital networks. This includes digitally ordered, digitally delivered, and platform-enabled transactions. |
| Electronic Invoicing | The automated creation and exchange of electronic invoices in a structured digital format can be processed electronically. |
| Electronic Invoicing Service Provider (ESP) | A Bureau of Internal Revenue (BIR)-recognized service provider that supports taxpayers in e-invoicing, sales reporting, data transmission, storage, and related compliance requirements. |
| Electronic Invoicing and Sales Reporting (EIS) Certification | The BIR testing and certification process that verifies whether a taxpayer’s e-invoicing system complies with EIS requirements. |
| Permit to Issue (PTI) Electronic Invoice | The BIR authorization allows a taxpayer to issue compliant electronic invoices through a registered invoicing system. |
| Point-of-sale (POS) System | A sales receipting system that records transactions, manages sales and inventory, and generates system-issued invoices. |
| Structured Invoice Data | Invoice information arranged in a standardized digital format that can be automatically read, processed, stored, and transmitted by computer systems. |
III. COVERAGE
Applies to the following taxpayers:
• Taxpayers engaged in e-commerce or internet transactions, classified as Small, Medium and Large Taxpayers (Micro Taxpayers are exempted);
• Taxpayers under the jurisdiction of the Large Taxpayers Service (LTS);
• Large Taxpayers under Republic Act (RA) No. 11976 (Ease of Paying Taxes [EOPT] Act) and RR No. 8-2024;
• Taxpayers using CAS or CBA with Accounting Records (with electronic invoicing), and other invoicing software; and
• Other taxpayers as may be required by the Commissioner of Internal Revenue.
IV. POLICIES AND GUIDELINES
All covered taxpayers shall adhere to this Circular and shall follow the policies and guidelines provided herein:
- Covered taxpayers, except Micro Taxpayers, must issue electronic invoices on or before 31 December 2026. Taxpayers not covered may voluntarily adopt e-invoicing.
- Electronic invoicing is distinct from electronic sales reporting, which will be implemented through separate BIR guidelines.
- Taxpayers may use an in-house system, commercial software, or an ESP.
- The invoice must be generated by an approved system, transmitted electronically to the buyer, and capable of electronic data extraction and reporting.
- Printed invoices from systems that cannot electronically issue, transmit, or report data to the BIR are not considered electronic invoices.
- Electronic invoices must use a structured digital format capable of electronic processing and transmission.
- A printed copy may be provided for reference, provided the original invoice was electronically generated and issued.
- Reductions require a Credit Note/Memo, while increase in the invoiced amount require a new electronic invoice. Issued invoices cannot be altered or deleted.
- Taxpayers not subject to mandatory compliance may adopt e-invoicing upon securing a PTI Electronic Invoice.
- If covered, the Head Office and all branches must comply with electronic invoicing requirements.
- During system failures or outages, taxpayers may issue authorized manual invoices and replace them with electronic invoices once the system is restored.
- Taxpayers must secure a PTI Electronic Invoice before issuing electronic invoices.
- Separate PTIs are required for different invoicing systems, while additional branches using the same approved system may use the existing PTI.
- Electronic invoices issued through a PTI-approved system are recognized as valid proof of transaction for tax purposes.
- Taxpayers must obtain an EIS Certification within six (6) months from PTI issuance to validate system compliance.
- Covered taxpayers remain subject to electronic invoicing requirements despite changes in taxpayer classification, unless otherwise exempted by the BIR.
For a comprehensive discussion of the policies and guidelines, please refer to the full text of the issuance through the link below.