Sales Invoice or Official Receipt — which do I issue?

Under the Ease of Paying Taxes Act (Republic Act 11976) and Revenue Regulations 6-2024, both have been UNIFIED into a single accountable form called "Invoice." Existing Sales Invoice (for goods) and Official Receipt (for services) booklets may continue to be used until exhausted or until the next Authority to Print renewal, whichever comes first. After that, all transactions in the Philippines — whether sale of goods or rendering of services — are documented on the unified Invoice. This is the most significant change in Philippine invoicing in two decades and applies to all VAT, Non-VAT, and Percentage Tax registered businesses throughout the Philippines.

Do I need to charge VAT on every invoice?

Only if you are VAT-registered. Under Section 105 of the NIRC, registration is mandatory once annual gross sales or receipts exceed ₱3,000,000. VAT-registered Philippine sellers charge twelve percent (12%) Value-Added Tax on every Vat-able sale and file monthly Form 2550M and quarterly Form 2550Q. Below ₱3M, you may register voluntarily as VAT, register as Non-VAT and pay 3% percentage tax under Section 116, or — if you are a self-employed individual or professional — elect the 8% income-tax option of the TRAIN Law (RR 8-2018) which dispenses with both VAT and percentage tax. Some sales are Zero-Rated 0% (Section 108(B)) or VAT-Exempt (Section 109) — these still require an invoice but no VAT is collected.

What is EWT and who deducts it?

Expanded Withholding Tax (EWT) is a creditable advance income tax that certain Philippine buyers deduct from their payments to suppliers and remit directly to the BIR. Under Revenue Regulations 11-2018, top-20K corporations, large taxpayers, and government withholding agents must withhold EWT at varying rates: one percent (1%) on goods, two percent (2%) on general services, five percent (5%) on professional fees paid to natural persons (ten percent if annual gross sales exceed ₱720,000), and fifteen percent (15%) on rentals of real estate. The buyer remits via Form 1601-EQ and issues Form 2307. The seller credits the EWT against income tax in the quarterly and annual ITRs. Regular Philippine SMEs not designated as top-20K do not withhold EWT.

My foreign client paid in US dollars — what amount goes on my invoice?

Foreign currency transactions must be converted to Philippine peso at the Bangko Sentral ng Pilipinas (BSP) reference rate (or the buying rate of the seller's authorised agent bank) on the date of sale. The invoice itself may show both the foreign currency amount and the Philippine peso equivalent for clarity, but tax computation, BIR records, and books of accounts must all be in Philippine peso. Section 108(B)(2) of the NIRC zero-rates services rendered to non-residents engaged in business outside the Philippines, paid for in acceptable foreign currency, accounted under BSP rules — meaning the service is invoiced at 0% VAT but allows the seller to claim Input VAT credit. For exporters, this is a major benefit and is monitored closely by BIR and BSP.

What happens if I issue an invoice with the wrong sequence?

Issuing invoices out of sequence, or with gaps in the numbering, is a common BIR audit finding throughout the Philippines. Section 264 of the NIRC penalises every violation with a fine of ₱1,000 per missing or duplicate invoice, and the BIR may suspend or cancel your Authority to Print under Revenue Regulations 18-2012. In repeat cases, the Oplan Kandado program may close the business for five (5) days minimum. Best practice: issue strictly in sequence, void cancelled invoices clearly with a "VOID" stamp and retain in the booklet, record every invoice in books within fifteen (15) days of issuance, renew the ATP before its five-year expiry, and reconcile invoices to deposits monthly. Computerized systems with BIR Permit to Use (PTU) automate sequence control.

Can I issue an electronic invoice instead of printing?

Yes, increasingly. The Electronic Commerce Act of 2000 (Republic Act 8792) recognises electronic documents as functionally equivalent to paper. The BIR introduced the Electronic Invoicing System (EIS) under Revenue Regulations 8-2022, initially mandatory for top-20K large taxpayers and exporters, with progressive expansion to other taxpayer segments in the Philippines. For ordinary Philippine businesses still on printed booklets, the practical approach is to issue from your BIR-registered booklet, sign, scan as PDF, and send by email; or use BIR-PTU-registered (Permit to Use) accounting software that automatically generates compliant electronic invoices. The Ease of Paying Taxes Act (RA 11976) and RR 6-2024 modernised the framework further. Whichever method, the underlying requirements remain: valid ATP or PTU, sequenced numbering, all Section 113 NIRC particulars, and recording in books within fifteen (15) days.

How long must I retain my invoice records in the Philippines?

Section 235 of the NIRC, as amended by Revenue Regulations 17-2013, requires every Philippine taxpayer to preserve books of accounts and accounting records — including issued invoices, receipts, and supporting documents — for TEN (10) years from the day after the deadline of filing the relevant return, OR from the date of late filing if applicable. The first five (5) years must be in original hard copy or BIR-approved electronic format; the remaining five (5) may be stored as scanned copies. Loss or destruction during this period exposes the taxpayer to deficiency assessments based on BIR estimation, plus 25% surcharge (Section 248) and 20% annual interest (Section 249). Best practice in the Philippines: maintain physical archives plus encrypted cloud backups, and keep records of voided invoices alongside the issued sequence.

Finance & TaxPH

Free Sales Invoice Template — Philippines (BIR-compliant)

A professional sales invoice drafted in line with Philippine tax law for VAT, Non-VAT, and Percentage Tax registered businesses. Compliant with the National Internal Revenue Code (NIRC), the TRAIN Law (RA 10963), the Ease of Paying Taxes Act (RA 11976), and Bureau of Internal Revenue (BIR) Revenue Regulations 6-2024. Issue an accountable form that meets Section 113 NIRC particulars and supports your client's input-tax claim. Generate a professional PDF for any Philippine business transaction.

Create Your Sales Invoice

Free to useInstant PDFNo account required

INVOICE

SI-2026-001

Ref: PO: PO-2026-089

Bayan Solutions, Inc.

12F Net Park Building, 5th Avenue, Bonifacio Global City, Taguig 1634

DATE

April 25, 2026

DUE DATE

May 25, 2026

TERMS

Net 30

CURRENCY

PHP

FROM

Bayan Solutions, Inc.

Tax ID: TIN: 009-876-543-000 · Business Style: Bayan Solutions

12F Net Park Building, 5th Avenue, Bonifacio Global City, Taguig 1634

billing@bayansolutions.ph

+63 2 8888 8888

BILL TO

Pearl Ventures Holdings Corp.

Tax ID: TIN: 008-765-432-000 · Business Style: Pearl Ventures

Attn: Accounts Payable Department

8F The Trade and Financial Tower, 7th Avenue cor. 32nd Street, BGC, Taguig 1634

ap@pearlventures.ph

PO #: PO-2026-089

VAT SALES INVOICE issued in compliance with Sec. 113 of the NIRC and BIR Revenue Regulations 18-2012, as amended by RR 6-2022. VAT Treatment: Vatable 12%.

LINE ITEMS

Description	Qty	Unit Price (PHP)	Amount (PHP)
Software application development services (Phase 1)	1	450,000.00	450,000.00
UI/UX design and prototyping	1	120,000.00	120,000.00
Project management (40 hours @ PHP 2,500/hr)	40	2,500.00	100,000.00

Subtotal	670,000.00 PHP
Vatable Sales	670,000.00 PHP
VAT 12%	80,400.00 PHP
TOTAL AMOUNT DUE	750,400.00 PHP
Less: EWT 5% (withheld by recipient)	- 33,500.00 PHP
Amount Paid	- 150,000.00 PHP
BALANCE DUE	566,900.00 PHP

BANK DETAILS FOR PAYMENT

Bank: BDO Unibank, Inc.
Account Name: Bayan Solutions, Inc.
Account No.: 1234-5678-9012
Branch: BGC Forum, Taguig City
Swift Code: BNORPHMM (for international transfers)

NOTES

Please remit payment via bank transfer to the account indicated above.
Kindly withhold the applicable EWT and issue BIR Form 2307 within 20 days from end of the quarter.
Late payment shall accrue interest at 6% per annum (Civil Code Art. 2209; BSP Circular 799-2013).

Thank you for your business. We look forward to serving you again.

What is a sales invoice in the Philippines?

A sales invoice in the Philippines is the primary accountable document evidencing a sale of goods or services by a BIR-registered taxpayer. Under Section 113 of the National Internal Revenue Code (NIRC), every VAT-registered person must issue a duly registered Invoice for every sale, exchange, or barter of goods or properties. The Ease of Paying Taxes Act (Republic Act 11976), enacted in January 2024 and implemented by Revenue Regulations 6-2024 and 7-2024, unified the previous distinction between Sales Invoice (for goods) and Official Receipt (for services) — both are now uniformly referred to as "Invoice." Existing booklets may continue to be used until exhausted or until the next ATP renewal, whichever comes first, in transition.

Every Philippine sales invoice must be printed under a valid Authority to Print (ATP) issued by the BIR Revenue District Office (RDO) where the seller is registered. The ATP is granted after the taxpayer secures BIR Form 2303 Certificate of Registration. Section 237 of the NIRC, as amended by RA 11976, requires that an Invoice be issued for every sale of ₱500 or more (raised from ₱100 by the Ease of Paying Taxes Act) — though many Philippine businesses issue invoices for every transaction regardless of amount as a matter of internal control. The minimum content under Section 113 NIRC includes: registered name, business style, TIN, VAT registration status, address, sequence number, date of transaction, name and TIN of the buyer (for VAT-registered buyers), description, quantity, unit price, total amount, and applicable taxes. Failure to comply triggers Section 264 NIRC penalties of ₱1,000 per invoice and possible closure under Oplan Kandado.

The tax treatment depicted on a Philippine sales invoice depends on the issuer's registration. VAT-registered taxpayers (annual gross sales > ₱3,000,000 mandatory under Section 105 NIRC, or voluntary registration) must charge twelve percent (12%) Value-Added Tax on the sale price, file monthly BIR Form 2550M and quarterly Form 2550Q, and remit the VAT to the BIR. Non-VAT taxpayers below the ₱3M threshold pay three percent (3%) percentage tax under Section 116 (suspended to 1% from 1 July 2020 to 30 June 2023 under the CREATE Law, returned to 3% thereafter). Self-employed individuals and professionals under the 8% income-tax option of the TRAIN Law (RA 10963, Section 24(A)(2)(b) NIRC, RR 8-2018) are exempt from both VAT and percentage tax — their invoices show only the gross amount with no transaction tax line. The Doxuno template adapts to all three regimes throughout the Philippines.

What this template covers

The Doxuno Philippine sales invoice template includes every element required by the National Internal Revenue Code, the TRAIN Law, and BIR Revenue Regulations 6-2024 (Ease of Paying Taxes Act).

Supplier (issuer) details

Registered name, business style, TIN, BIR-registered Philippine address

Buyer (recipient) details

Name, TIN, business style, address — required for input-tax credit

Invoice number and date

Sequential under BIR ATP rules — gaps trigger Section 264 NIRC fines

Registration type selector

VAT, Non-VAT, or Percentage Tax registration per Sec. 105/116 NIRC

Goods or services description

Per Section 113 NIRC — vague descriptions fail BIR audit

Quantity, unit price, line total

Philippine peso (₱) — foreign currency requires BSP equivalent rate

VAT 12% computation

Output VAT under Section 106 NIRC for VAT-registered Philippine sellers

Zero-rated and VAT-exempt categories

Sec. 108(B) zero-rated services and Sec. 109 exempt transactions

EWT 5% withholding box

For top-20K corporate buyers under Revenue Regulations 11-2018

Discount handling

Trade and prompt-payment discounts shown gross and net

Bank details and payment terms

Philippine peso account, GCash, Maya — Net 7/15/30 standard

TIN and ATP footer

BIR Authority to Print serial, valid range, and date of issuance

How to issue your sales invoice

No accounting background required. The Doxuno generator walks you through each section to produce a professional PDF aligned with Philippine BIR rules and the Ease of Paying Taxes Act.

1
Confirm your BIR registration and ATP
Before issuing any invoice in the Philippines, ensure you hold BIR Form 2303 Certificate of Registration and a valid Authority to Print (ATP) under Revenue Memorandum Circular 8-2024. Identify your registration: VAT (mandatory above ₱3M annual gross sales), Non-VAT with 3% percentage tax, or self-employed individual under the 8% TRAIN Law option. The ATP is renewed every five (5) years per RR 18-2012, and the registered name on the invoice booklet must match your BIR Form 2303 exactly. Filipino businesses with computerized invoicing must hold a BIR Permit to Use (PTU) under RR 16-2018.
2
Enter supplier and buyer details
Enter your registered name (as on BIR Form 2303), business style (the trade or operating name registered with DTI for sole proprietors or with SEC for corporations), TIN, BIR-registered Philippine address, contact details, and bank account. For the buyer, enter the registered name, TIN, business style, and address. The buyer's TIN is required for any VAT-registered Philippine buyer to claim input-tax credit on the transaction. Missing TIN does not invalidate the invoice but prevents the buyer from claiming the input tax — which is a common reason Philippine VAT-registered companies refuse non-compliant invoices.
3
Describe goods or services in detail
Add line items describing each good sold or service rendered — per Section 113 of the NIRC, the description must be specific enough for BIR examiners to verify the nature of the transaction during routine audit. For goods, indicate brand, model, specification, and quantity. For services, indicate scope, duration, and deliverables. Vague descriptions like "miscellaneous goods" or "consulting services" without specification are routinely challenged in Philippine BIR audits and may lead to disallowed deductions for the buyer. Enter the unit price in Philippine peso (₱) — foreign currency transactions must be converted at the Bangko Sentral ng Pilipinas reference rate on the date of sale.
4
Apply VAT, percentage tax, and EWT correctly
Based on your registration, the template applies the correct transaction tax. For VAT-registered Philippine sellers under Section 105 NIRC, twelve percent (12%) Output VAT is added to the sale price, with sub-categories: Vat-able 12% (standard), Zero-rated 0% (Section 108(B) — export sales, sales to PEZA-registered entities, etc.), and VAT-exempt (Section 109 — agricultural products, residential rent below threshold, books). For Non-VAT under Section 116, three percent (3%) percentage tax applies. For the 8% TRAIN-Law option, no transaction tax is shown on the invoice. If the buyer is a top-20K corporation, large taxpayer, or government withholding agent under RR 11-2018, the buyer withholds Expanded Withholding Tax (typically 1% on goods, 2% on services, 5% on professional fees) and issues BIR Form 2307.
5
Set payment terms, send, and record
Choose payment terms (Net 7, 15, or 30 days are most common for Philippine B2B; immediate for B2C), provide bank details (Philippine peso account at BPI, BDO, UnionBank, Metrobank, Landbank, or e-wallets like GCash and Maya), and any prompt-payment discount. Generate the PDF, issue to the buyer, and record the invoice in your books of accounts (manual, loose-leaf, or computerized — registered with the BIR) within fifteen (15) days under RR 16-2018. Include the invoice in your monthly VAT return (Form 2550M) if VAT-registered, or in your quarterly percentage-tax return (Form 2551Q) if applicable. Maintain sequenced copies for ten (10) years per Section 235 NIRC.

Legal considerations in the Philippines

Issuing a sales invoice in the Philippines is at once a contractual act and a tax-compliance act. The points below shape day-to-day practice and BIR audit posture.

This template is provided for informational purposes only and does not constitute legal or tax advice. For complex transactions, cross-border sales, or doubts about Philippine tax law application to your specific case, please consult a BIR-accredited Certified Public Accountant or a licensed Philippine tax lawyer.

Reviewed by tax professionals. The content of this page and the template clauses have been reviewed against the National Internal Revenue Code, the TRAIN Law (RA 10963), the Ease of Paying Taxes Act (RA 11976), and BIR Revenue Regulations 6-2024, 8-2018, 11-2018, and 16-2018, ensuring compliance for ordinary Philippine sales invoicing.

Ease of Paying Taxes Act (RA 11976) — invoice unification

The Ease of Paying Taxes Act (Republic Act 11976), enacted on 5 January 2024 and implemented through Revenue Regulations 6-2024, 7-2024, and 8-2024, introduced the most significant overhaul of Philippine invoicing rules in two decades. The Act unified the previously distinct documents — Sales Invoice (for goods) and Official Receipt (for services) — into a single accountable form simply called "Invoice." Existing booklets may continue to be used until exhausted or until the next ATP renewal, whichever comes first, with the option to convert OR booklets into Invoice booklets via stamp or annotation. The Act also raised the threshold for mandatory issuance of an Invoice from ₱100 to ₱500 (Section 237 NIRC as amended), simplified the manner of payment regulations, and reclassified taxpayers into Micro, Small, Medium, and Large categories with proportionate compliance burdens. The reforms apply throughout the Philippines and aim to reduce the average time spent on tax compliance by Filipino businesses, particularly micro and small enterprises.

VAT registration and Output VAT mechanics

A Philippine taxpayer becomes mandatorily VAT-registered when annual gross sales or receipts exceed ₱3,000,000 under Section 105 of the NIRC. VAT-registered taxpayers charge twelve percent (12%) Output VAT on every sale of goods or services, file monthly BIR Form 2550M (due by the 20th of the following month) and quarterly Form 2550Q (due by the 25th of the month following each quarter). The Output VAT collected is offset by Input VAT on purchases of goods, services, and capital assets, and the net amount is remitted to the BIR. Section 108(B) of the NIRC lists Zero-Rated transactions including export sales, sales to PEZA-registered enterprises, services rendered to non-residents in foreign currency, and supplies for international shipping — these trigger 0% VAT rate but allow Input VAT credit. Section 109 lists VAT-Exempt transactions including agricultural products in their original state, residential rent up to ₱15,000 per month, books and educational materials, and medical services — these are not subject to VAT and the seller cannot claim Input VAT credit. The Doxuno invoice template lets the user select among Vat-able 12%, Zero-Rated, and VAT-Exempt classifications.

Expanded Withholding Tax (EWT) on goods and services

When the Philippine buyer is a top-20K corporation, large taxpayer, or government withholding agent designated under Revenue Regulations 11-2018, the buyer must withhold Expanded Withholding Tax (EWT) on payments to the seller as creditable advance income tax. The EWT rates vary by nature of transaction: one percent (1%) on goods (sale of merchandise), two percent (2%) on services (general contracting, ordinary services), five percent (5%) on professional fees paid to natural persons whose annual gross sales/receipts do not exceed ₱720,000 (ten percent if exceeding), fifteen percent (15%) on rentals of real estate paid to natural persons, and various other rates per RR 11-2018. The buyer remits via BIR Form 1601-EQ each quarter and issues BIR Form 2307 to the seller. The seller credits the withheld EWT against income tax due in the Quarterly and Annual Income Tax Returns. Smaller Philippine buyers (regular SMEs not designated as top-20K) do not withhold EWT, and the seller pays the full income tax at the regular schedule.

Books of accounts, audit, and ten-year retention

Every Philippine BIR-registered taxpayer must keep books of accounts under Section 232 of the NIRC. Manual books (Cash Receipts Journal, Cash Disbursements Journal, General Journal, General Ledger, plus Sales Journal and Purchase Journal for VAT) must be registered with the RDO before use. Loose-leaf books require RR 9-2009 approval, and computerized accounting systems require a BIR Permit to Use (PTU) under RR 16-2018. Invoices issued must be recorded in chronological and sequence order within fifteen (15) days of issuance. Section 235 NIRC, as amended by RR 17-2013, requires preservation of books and supporting documents (including issued invoice copies and receipts) for TEN (10) years from the day after the deadline of filing the relevant return — first five years in original form, remaining five in BIR-approved electronic format. BIR audits typically occur every two to five years for active Philippine taxpayers and verify (a) sequenced numbering with no gaps, (b) consistency between invoices and bank deposits, (c) ATP validity, (d) VAT-vs-percentage-tax consistency, and (e) match between income declared and EWT credits. Deficiency assessments carry twenty-five percent (25%) surcharge under Section 248 and twenty percent (20%) annual interest under Section 249.

Frequently Asked Questions

Ready to issue your sales invoice?

Fill in your details in just a few minutes and obtain a professional Philippine sales invoice, compliant with the NIRC, the TRAIN Law, the Ease of Paying Taxes Act (RA 11976), and BIR Revenue Regulations. Free download, no account required.

Create Your Sales Invoice Browse All Templates

Free · Instant PDF · No account required