Paperless invoicing and sales reporting

THE electronic invoicing system was first introduced via an amendment to the National Internal Revenue Code (NIRC or Tax Code) through the TRAIN Law, effective January 2018, and further amended by the recently signed CREATE MORE.

- MARY ROSE LARA

To implement the updated provisions on electronic invoices, electronic sales reporting and additional allowable deductions, the BIR issued Revenue Regulations (RR) No. 11-2025.

ISSUANCE OF ELECTRONIC INVOICES

In compliance with the BIR’s directive, an Electronic Invoicing/Receipting System (EIS) was established where the data required to be transmitted are stored and processed using the Sales Data Transmission System. From the initial coverage of taxpayers required to issue electronic invoices based on the earlier RR No. 8-2022 and the regulations added the following taxpayers to comply: (1) those classified as Large Taxpayers under the Ease of Paying Taxes (EoPT) Act and RR No. 8-2024 and (2) taxpayers using Computerized Systems of Account (CRA) with electronic invoicing and other invoicing software.

Meanwhile, certain taxpayers are required to issue electronic invoices upon the BIR’s establishment of a system capable of storing and processing transmitted data: (1) Registered Business Enterprises (RBE) availing of tax incentives, except those using CAS, CRA with accounting records and other invoicing software; (2) taxpayers using point-of-sale systems (POS); and (3) other taxpayers as may be required by the Commissioner to issue electronic invoices.

Taxpayers classified as micro-taxpayers inline with the EoPT Law are excluded from the requirement. Nonetheless, they may voluntarily issue or continue to issue electronic invoices (if already doing so). In such cases, they can avail of the additional deductions provided under CREATE MORE.

ELECTRONIC SALES REPORTING REQUIREMENTS