Invoice 101: What Information Should Be Included?

The Ease of Paying Taxes Act has introduced amendments to the Philippines' taxing system, including requirements on what should be placed on the invoice

The Ease of Paying Taxes Act introduced amendments that clearly state what should appear on an invoice.

Paying taxes can be a confusing and difficult experience here in the Philippines, and this is exactly what The Ease of Paying Taxes Act hopes to address. The law, which was signed by President Ferdinand “Bongbong” Marcos Jr. on January 5, 2024, introduced amendments that seek to modernize the way taxes are being collected and paid in the country. 

Given this, the Bureau of Internal Revenue (BIR) has issued multiple Revenue Regulations (RR) that expound on the amendments introduced by the law. In particular, RR No. 7-2024, which was issued on April 11, 2024, discusses changes regarding the invoice. 

RR No. 7-2024 defines an invoice as “a written account evidencing the sale of goods and/or services issued to customers in the ordinary course of trade or business.” Examples of an invoice are as follows:

  • Cash Invoice
  • Charge/Credit Invoice
  • Commercial Invoice
  • Miscellaneous Invoice
  • Sales Invoice
  • Service Invoice

Among the changes that shall be implemented, per The Ease of Paying Taxes Act, include which information should appear on an invoice. Specifically, certain information are now required to appear on an invoice, while others are either optional or no longer necessary.

Required Information on the Invoice 

One of the required details that should appear on an invoice is the term itself. In fact, the Ease of Paying Taxes Act requires that the term “invoice” should appear prominently. 

For taxpayers who are engaged in transactions that are either VAT-exempt or Percentage Tax-exempt, the following should be followed:

  • Taxpayer must issue a Non-VAT invoice
  • The word “exempt” must appear on the invoice

In addition, specific additional details must be included on the invoice for taxpayers dealing with the following:

  • Medal of Valor awardees
  • National coaches and athletes under Republic Act (R.A.) No. 10699
  • Persons with disabilities (PWDs)
  • Senior citizens
  • Solo parents 

Unnecessary or Optional Information on the Invoice

According to The Ease of Paying Taxes Act, the following information are no longer necessary when it comes to the invoice:

  • Business style 
  • Business address and Tax Identification Number (TIN) of the buyer (for transactions that directly involve the sale of goods from a business to its consumers) 

While it is no longer necessary to include the business style, a taxpayer still has the option to include a business name that has been registered with the Department of Trade and Industry (DTI). Inclusion of the trade name along with the BIR-registered name is likewise optional.