Philippines BIR issues new electronic invoicing and audit regulations

The Philippine Bureau of Internal Revenue (BIR) has issued mandatory regulations regarding electronic invoicing under Revenue Memorandum Circular No. 98-2026. The new rules, which aim to advance the digitalization of business processes, require small, medium, and large enterprises in the e-commerce and internet sectors to issue electronic invoices by December 31, 2026. Micro-enterprises, exporters, and certain tax-exempt entities are currently excluded from these specific requirements.

In a separate regulatory development, Revenue Memorandum Order No. 22-2026 outlines the procedures for BIR audits. The order establishes the boundaries for BIR examiners and the obligations of taxpayers during an audit. Taxpayers are advised to verify the authority of audit instruments, such as electronic Letters of Authority (eLA), Tax Verification Notices (TVN), or Mission Orders (MO), to ensure the examination remains within its authorized scope and covers the correct taxable periods.