Quick answer
In the Philippines, the invoice is now the main proof of sale for both goods and services, replacing the official receipt. VAT-registered sellers must issue a registered VAT invoice for every sale. Non-VAT sellers must issue one for sales of P500 or more, or whenever the buyer asks. Every invoice shows your registered name, VAT or non-VAT status with your TIN, address, a serial number, date, the items, and the total.
Required details
Include each of these on the invoice. Some apply only above a value or for certain customers.
| Detail | What to show |
|---|---|
| Your registered name | As shown on your BIR Certificate of Registration. You may add your business or trade name. |
| VAT or non-VAT status, TIN, and branch code | For example "VAT Reg TIN 123-456-789-00000" or "Non-VAT Reg TIN 987-654-321-00000". |
| Registered business address | The address where the invoice is used. |
| The word "Invoice" | Such as Sales Invoice, Service Invoice, or Billing Invoice, with "Invoice" printed prominently. |
| Date of transaction | The date of the sale. |
| Serial number | Printed prominently. |
| Buyer name, address, and TIN | Not needed for sales to consumers. For sales of P1,000 or more to a VAT-registered buyer, a VAT invoice must include them. |
| Quantity, unit cost, and description | For each item, or the nature of the service. |
| Total amount and VAT | The total sale, with the VAT shown as a separate item if you are VAT-registered. |
| VATable, zero-rated, and exempt sales | Broken down separately when one invoice mixes them. |
Good to know
Invoices must be registered with the BIR: printed under an Authority to Print, or generated by a registered computerized system. Official receipts and billing statements are now supplementary documents and are not valid for claiming input VAT.
Tax rules
VAT or percentage tax
VAT is 12 percent. You must register for VAT when your gross sales exceed P3,000,000 a year; this threshold is adjusted for inflation every three years. Below it, you generally pay percentage tax and issue non-VAT invoices.
Withholding on professional fees
Businesses that pay professional or talent fees to individuals withhold 5 percent if the payee gave a sworn declaration that gross income will not exceed P3,000,000 and is not VAT-registered, and 10 percent otherwise. The payer gives you BIR Form 2307 to credit against your income tax.
Electronic invoicing
Under RR 26-2025, e-commerce businesses (except micro taxpayers), large taxpayers, and businesses using computerized accounting or invoicing software must issue electronic invoices by December 31, 2026. Exporters and other groups join once the BIR issues separate regulations.
An electronic invoice must come from a registered system and be sent electronically. Invoices typed in Word or Excel do not count. You need a Permit to Issue electronic invoices from your Revenue District Office first.
Record keeping
Keep books of accounts and supporting records, including invoices, for 5 years from the day after the deadline for filing the return for the year of the last entry, or from the date you actually filed if later. Keep them longer if they relate to a pending protest or refund claim.
Frequently asked questions
Can I still issue official receipts?
Since the EOPT Act, the invoice is the primary evidence of sale for goods and services. An official receipt can still show proof of payment, but it is a supplementary document and does not support an input VAT claim.
Does a non-VAT seller have to issue an invoice for small sales?
Yes if the buyer asks for one, whatever the amount. Otherwise, sales under P500 can be combined into one invoice at the end of the day once they total P500 or more.
Is a PDF invoice an electronic invoice under BIR rules?
Not by itself. An electronic invoice must be generated by a registered or accredited system in a structured format that can be sent to the BIR. A PDF made in a word processor does not qualify.
Related terms
- VAT VAT (value added tax) is a consumption tax charged at each stage of the supply chain on the value added, used in the EU, UK, and more than 160 other countries.
- Tax invoice A tax invoice is an invoice that meets the legal requirements for the buyer to claim a tax credit, typically under a VAT or GST system.
- Tax ID A tax ID is the number a tax authority assigns to a business for reporting and collecting taxes.
- Withholding tax Withholding tax is an amount a client deducts from an invoice payment and pays directly to the tax authority on the supplier's behalf.
- Receipt A receipt is a document that confirms a payment has been received.
- E-invoicing E-invoicing is the exchange of invoices in a structured electronic format that the recipient's system can process automatically, as opposed to a PDF or paper invoice that must be read and keyed in.
Sources
- BIR: RMC 77-2024, invoicing requirements under the EOPT Act
- BIR: RR 11-2024, transitory provisions for invoicing
- BIR: Ease of Paying Taxes Act flyer
- BIR: RR 26-2025, electronic invoicing compliance period
- BIR: Digest of RR 11-2018 on withholding taxes
Last reviewed October 22, 2026. Spot something out of date? Let us know.
This page is general information, not legal or tax advice. Rules change and depend on your situation, so check the official sources or ask an accountant before relying on it.