Summary
RR No. 11-2025 implements Sections 237 and 237-A of the NIRC, as amended by RA No. 12066 (CREATE MORE), on electronic invoicing and electronic sales reporting.
Key points
- Mandatory e-invoicing now. Covered taxpayers are those in e-commerce or internet transactions, under the Large Taxpayers Service, classified as Large Taxpayers under RA No. 11976 and RR No. 8-2024, and users of Computerized Accounting System or Computerized Books of Accounts with electronic invoicing and other invoicing software. Head Office and all Branch Offices are also covered.
- Mandatory once BIR system is set up. Exporters under Sections 106 and 108, RBEs availing of Tax Incentives under Section 304(D), POS users and others required by the Commissioner are covered upon establishment of a BIR system to store and process the data. Electronic sales reporting applies to the same groups once that system exists.
- What counts as electronic invoice. Invoices printed on paper from CAS, CBA, CRM, POS or other software, without capability to electronically report the data, are classified as traditional manual invoices.
- E-commerce coverage. E-commerce taxpayers include persons engaged in online businesses, digital platforms, digital content creation, e-retailing, freelance and digital services, on-demand services, and transport and delivery contracted through online platforms.
- Additional deduction. Taxpayers required under Section 3(A) and 3(B), and those complying voluntarily, get an additional deduction from taxable income on the cost of setting up the system: 100% for Micro and Small Taxpayers and 50% for Medium and Large Taxpayers. It is availed of once, and importation of the system is exempt from taxes.
- Micro taxpayers and compliance period. Micro Taxpayers are exempt from the mandatory e-invoice requirement and issue registered manual invoices, but may use e-invoices voluntarily or CAS, CRM and POS. Taxpayers under Section 3(A)(1) to (3) have one (1) year from effectivity to comply.
Who is affected
- E-commerce taxpayers
- Large Taxpayers and taxpayers under the Large Taxpayers Service
- Users of CAS, CBA and invoicing software
- Exporters and RBEs availing of tax incentives
- POS users
Deadlines and effectivity
- Taxpayers under Section 3(A)(1) to (3): one (1) year from effectivity
- Other groups: upon establishment of a BIR system for data
- Issued February 27, 2025
Summary by Tax Resources PH. It is not a substitute for the full text of the issuance or professional advice.
Copies of BIR issuances are hosted here for reference. For the official version, check bir.gov.ph. Summaries by Tax Resources PH are not a substitute for the full text or professional advice.