Understanding the BIR Electronic Invoicing System (EIS) in the Philippines

The Bureau of Internal Revenue (BIR) has rolled out its Electronic Invoicing/Receipting System (EIS) as part of the government’s push for digital tax compliance. This system changes the way businesses issue receipts and invoices, aiming to improve transparency, reduce fraud, and simplify tax reporting.

In this post, we’ll explain how the EIS works, who needs to register, the technical requirements, and what businesses must do to stay compliant.

How the BIR Electronic Invoicing System Works

The EIS is a centralized platform where taxpayers transmit their invoices and receipts electronically. Instead of relying on manual reporting, businesses issue invoices digitally through their accounting or POS systems, and the data is sent directly to the BIR in real-time or within three days of the transaction.

Each invoice is prepared in a structured format (JSON), digitally signed, and transmitted through the BIR’s API. The system validates the data and provides an acknowledgment—accepted invoices become part of the BIR’s official records. Only invoices successfully reported in the EIS are recognized for VAT credits or expense deductions.

Who Needs to Register for EIS?

The rollout is phased, starting with larger taxpayers and e-commerce players. By March 14, 2026, the following are required to comply:

• Taxpayers engaged in e-commerce or online transactions

• Large taxpayers under the BIR’s Large Taxpayers Service (LTS)

• Businesses classified as large taxpayers under the Ease of Paying Taxes Act

Exporters, tax-incentive beneficiaries, and POS users are expected to follow in later phases. Micro enterprises are currently exempt, but they can voluntarily register if they wish.

Registration and Onboarding Process

Getting started with EIS involves a few key steps:

1. Register your accounting or POS system with the BIR.

2. Develop or configure a Sales Data Transmission System that can connect to the BIR’s API.

3. Enroll in the EIS Portal to obtain credentials.

4. Apply for EIS Certification to confirm your system meets technical requirements.

5. Secure a Permit to Transmit (PTT) from the BIR.

6. Go live and start transmitting invoices and receipts electronically.

Once approved, businesses must ensure that all branches use the certified system for issuing invoices.

Technical Requirements for Implementation

• Format: JSON (JavaScript Object Notation) is the standard format; XML is also supported.

• Transmission: Data is sent via the BIR’s secure API endpoints.

• Security: Each file must be digitally signed to ensure authenticity.

• Integration: ERP, POS, or accounting systems must be updated to generate and send data automatically.

• Backup Option: Smaller taxpayers may use the BIR’s EIS Portal to manually encode or upload invoices.

Reliable internet connectivity and proper data storage are also critical for compliance.

Compliance Rules and Penalties

Businesses under the EIS must:

• Issue only BIR-registered e-invoices/e-receipts for all transactions.

• Transmit sales data within three (3) calendar days of the invoice date.

• Ensure all data is accurate, complete, and validated by the EIS.

• Continue to comply with record-keeping requirements (retain copies for at least 10 years, with the first 5 years in hard copy).

• Monitor rejected invoices and resubmit corrected data promptly.

Failure to transmit sales data on time or issuing invoices outside the certified system can lead to fines and penalties under the Tax Code. The BIR may also audit and assess unpaid taxes for unreported sales.

Benefits and Incentives

The government offers some incentives to encourage adoption:

• Additional tax deductions for costs related to EIS software and system upgrades.

• Duty-free and tax-free importation of equipment used for e-invoicing.

• Relief from submitting the Summary List of Sales (SLS), since sales data is already reported electronically.

These benefits help offset compliance costs while streamlining reporting obligations.

Final Thoughts

The shift to electronic invoicing is a big step in modernizing the Philippine tax system. While it requires businesses to invest in IT systems and compliance processes, it also promises faster reporting, reduced paperwork, and greater transparency.

If your business is part of the mandated group—or you want to get ahead by voluntarily adopting—now is the best time to prepare. Work with your accounting and IT teams to ensure your systems are ready, and keep track of new BIR issuances to stay compliant.