BIR-Compliant Philippines e-Invoicing Solution

The EIS is the Bureau of Internal Revenue’s platform for receiving electronic invoice and sales data. Mandated under the TRAIN Law (RA 10963, Section 237-A) and rolled out from 1 July 2022 under RR 8-2022, it requires covered taxpayers to issue structured electronic (JSON) invoices and transmit sales data to the BIR in near real time.

No. The Philippine EIS is a reporting/transmission model. The taxpayer generates the JSON invoice, signs it with a JSON Web Signature (JWS), issues it to the buyer, and transmits the sales data to the BIR. There is no government-issued clearance number or QR code that the invoice must obtain before it is valid, and it does not use a PEPPOL four-corner network.

In practice, Group 1 (mandatory by 31 December 2026) covers Large Taxpayers with PHP 1 billion+ annual gross sales, CAS/CBA-registered taxpayers, and e-commerce or internet-transaction businesses, including every branch of an in-scope head office. Group 2 – exporters, incentivized RBEs, POS users, and Commissioner-designated taxpayers – becomes mandatory once the BIR confirms its system can process their data. Micro taxpayers under PHP 3 million in annual gross sales are fully exempt but may adopt voluntarily.

No. The EIS requires a structured electronic invoice in JSON format; emailing or printing a PDF does not meet the requirement. XML is permitted for issuance but is not accepted for API transmission to the EIS – only structured JSON is.

Under the Ease of Paying Taxes Act (RA 11976) and RR 7-2024, the Sales Invoice became the primary document for the sale of both goods and services, and the Official Receipt was repositioned as a supplementary document. This affects which document type your system issues and transmits.

Non-compliance carries specific, sourced penalties under NIRC Sections 264 and 264-A as invoked by RR 11-2025 Section 5: PHP 1,000–50,000 per offense plus 2–4 years imprisonment for invalid-format invoices; PHP 10,000 per day (or 1/10 of 1% of annual net income, whichever is higher) for late transmission; possible business closure after 180 days of non-compliance in a taxable year; forfeiture of the CREATE MORE tax deduction for mandated non-adopters; and disallowed input VAT claims for buyers holding non-compliant invoices.

Cygnet.One connects to SAP, Oracle NetSuite, Microsoft Dynamics, and local/custom accounting (CAS) systems, along with POS and e-commerce platforms. It maps your data into the EIS JSON format, applies JWS signing, validates against EIS rules, and transmits to the BIR with audit-ready archival.

Yes. Under RR 11-2025 Section 3(D), Micro and Small taxpayers can claim a one-time additional income-tax deduction equal to 100% of their e-sales reporting system setup cost; Medium and Large taxpayers can claim 50%. Imported systems are tax-exempt under the same provision. Voluntary adopters – including Micro taxpayers and not-yet-mandated Group 2 businesses – remain eligible.

Yes – taxpayers with annual gross sales below PHP 3 million are fully exempt from mandatory e-Invoicing, though they may adopt voluntarily and still claim the associated tax deduction.

The EIS schema requires 20+ mandatory fields, including exact transaction timestamps, buyer and seller TINs and branch codes, VAT treatment (12%, 0%, or exempt) with the correct tax label, and multi-currency exchange rates where relevant.

The PTT authorizes production transmission to the EIS and is obtained after registering on the EIS portal, generating your Application and Signing keys, passing BIR review, and retrieving your EIS certificate. Cygnet.One manages sandbox testing, key custody, and the certification workflow on your behalf.