Keeping up with e-invoicing

With the Philippine tax system undergoing digital transformation, Revenue Regulation (RR) 11-2025, issued by the Bureau of Internal Revenue (BIR), marks another step toward this transition. The shift to electronic invoicing and sales reporting promises greater transparency, efficiency and accountability for both taxpayers and tax administration. Aside from planning for compliance, businesses may see this as a strategic opportunity to streamline operations and align with global best practices in tax digitization.

- HORACE IRVINSON LOPE

Issued to implement Sections 237 and 237-A of the Tax Code, RR 11-2025 outlines who must issue electronic invoices (e-invoices), how the e-invoices must be formatted and transmitted, and when the transition must take place.

Under RR No 11-2025, the following taxpayers are mandated to issue e-invoices in a structured data format:

1. Taxpayers engaged in e-commerce or internet transactions, classified as small, medium, large taxpayers, (micro taxpayers are exempted);

2. Taxpayers under the jurisdiction of the Large Taxpayer Service;

3. Taxpayers classified as Large Taxpayer under Republic Act (RA) 11976, or the Ease of Paying Taxes Act and RR 8-2024; and