Philippines Extends Deadline for Mandatory E-Invoicing

The Philippines Bureau of Internal Revenue (BIR) has extended the deadline for the mandatory issuance of structured e-invoices. The latest decision by the BIR modifies the earlier defined implementation deadline, which initially required compliance by March 2026. Even though no specific clearance process or standard format has been introduced yet, the regulation outlines which taxable persons will eventually fall within the scope of this requirement.

The Scope and E-invoicing Implementation Deadline

In late 2024, the Philippine government adopted the so-called CREATE MORE Act, which introduced several amendments to the Tax Code, including changes to e-invoicing and the Continuous Transaction Controls (CTC) e-reporting system. The most notable changes included removing a five-year deadline for the government to implement e-invoicing and CTC e-reporting, and introducing tax deduction benefits for taxpayers who adopt e-invoicing and e-reporting. 

Following the enactment of the CREATE MORE Act, the BIR published earlier this year a draft regulation that further expanded on the Tax Code’s e-invoicing and CTC e-reporting provisions. The draft regulation expanded the list of taxable persons subject to mandatory e-invoicing, in addition to large taxable persons, to include taxable persons engaged in e-commerce and exporters. 

As a result, taxable persons that are using Computerized Accounting Systems (CAS), Computerized Accounting Books (CBA), and any other invoicing software, registered businesses and enterprises benefiting from tax incentives of Section 304(D) of the Tax Code, those using POS systems, and other taxable persons, upon request from the BIR Commissioner, became subject to mandatory structured e-invoicing. 

However, with its latest announcement, the BIR extended the deadline for the mandatory issuance of structured e-invoices until December 31, 2026. 

Conclusion

The structured e-invoicing system is part of the Philippines’ transition toward CTC e-reporting, aiming to improve transparency and real-time tax data collection. As stated by the BIR, under this new system, e-invoices must be issued in a structured data format that allows electronic extraction and transmission to the BIR. This transition to the new system will also mark the replacement of non-structured formats, such as PDFs.

Source: Philippine Bureau of Internal Revenue, Congress of the Philippines, Corporate Recovery and Tax Incentives for Enterprises to Maximize Opportunities for Reinvigorating the Economy (CREATE MORE Act)