The Bureau of Internal Revenue (BIR) has issued the implementing rules for electronic invoicing, requiring covered taxpayers to shift to electronic invoices by 31 December, 2026.

Revenue Memorandum Circular No. 98-2026, issued on 22 September, sets the guidelines for the implementation of electronic invoicing under Revenue Regulations Nos. 8-2022 and 11-2025, as amended by RR No. 26-2025.

The mandatory requirement covers small, medium and large taxpayers engaged in e-commerce or internet transactions, taxpayers under the Large Taxpayers Service, large taxpayers covered by the Ease of Paying Taxes framework, and businesses using computerized accounting systems and computerized books of accounts with accounting records and other invoicing software.

Micro taxpayers are excluded from the mandatory electronic invoicing requirement.

BIR Commissioner Charlito Martin R. Mendoza said the issuance allows the agency to proceed with implementation while refining the system based on taxpayer experience.

“With these rules in place, we can now move into implementation and refine the framework as needed. Our goal is to make electronic invoicing workable for taxpayers while laying a stronger foundation for the continued digitalization of tax administration,” Mendoza said.

Covered taxpayers may use an in-house system, commercially available electronic invoicing software, or an Electronic Invoicing Service Provider. The BIR said it will issue separate rules for service providers within September.

Mendoza also clarified that electronic invoicing and electronic sales reporting are separate requirements. Taxpayers are currently required to focus on electronic invoicing, while separate implementing policies for electronic sales reporting will be issued later.

The final rules followed a public consultation with private-sector stakeholders on 25 August at the BIR National Office.

Mendoza said electronic invoicing will reshape how businesses document transactions and how the BIR collects and uses tax data as part of the government’s broader digitalization program.