RR No. 11-2025 — Implementing Sections 237 and 237-A of the National Internal Revenue Code of 1997 (Tax Code), as Amended by Republic Act No. 12066 (Date Posted: February 27, 2025)

Bringing In Revenues for Nation-Building BUREAU OF INTERNAL REVENUE REPUBLIC OF THE PHILIPPINES DEPARTMENT OF FINANCE National Office Building Quezon City FEB 2 5 2025 PILIPINAS BAGONg

REVENUE REGULATIONNO.0 1 1 -- 2 0 2 5

SUBJECT Implementing Sections 237 and 237-A of the National Internal Revenue Code of 1997 (Tax Code), as Amended by Republic Act No. 12066

TO All Intermal Revenue Officials, Employees and Others Concerned

reporting and additional allowable deduction related thereto. SECTION 1. SCOPE, - Pursuant to Sections 244 and 245 of the National Internal Revenue 237-A of the Tax Code, particularly on the issuance of electronic invoices, electronic sales Code of 1997, as amended (Tax Code), in relation to Sections 12, 13, and 32 of Republic Act (RA) No. 12066, these Regulations are hereby promulgated to implement Scctions 237 and

SECTION 2, DEFINITION OF TERMS. - In applying the provisions of these Regulations, the following terms shall be defined as follows:

1. Electronic Invoice, -- It is a written account evidencing the sale, exchange or transfer its data can be readily transmitted electronically to the BIR for clectronic sales reporting. regulations. It is a system-generated invoice issued to the buyers electronically in a structured invoice data which can be easily extracted electronically from the invoice and of goods, properties, serviccs and/or Iease/use of properties, issucd in the ordinary course of irade or business, using an accounting/invoicing software or system with invoice management tools that is registered/accredited with the Burcau of Intermal Revenuc (BIR), containing the vital information as prescribed in thc existing rules and digital/electronic format (e.g. via email as Portable Document Format (PDF) attachments or email content or through electronic viewing in mobile or system applicafion) or subsequently printed: Provided thar, it is system-generated in a

A photo or scanned copy (in any file format) of a paper invoice (physical/manual copy) is not an clectronic invoice.

2 Electronic Invoicing. -- This refers to the automated process of generating an electronic

invoicc in a structured invoice data which can be easily extracted clectronically from

exchange of an electronic invoice that records a transaction between a seller and a buyer. This can be a one-way electronic exchange where the seller sends the electroric invoice to the buyer. the invoice allowing for automated electronic data processing. It involves the electronic

I 3.Electronic Sales Reporting System. - This refers to the electronic reporting or process of storing, transmitting and/or receiving the electronic invoice data, through direct system-to-system data transfer without manual entry, to the BIR in a structured electronic format (e.g. JavaScript Object Notation (JSON) file formal or Extensible

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Markup Language (XML) and such other format as may be prescribed by the BIR] and not in PDF or image format, etc. The electronic invoice data contains sales information from sellers to buyers and may also contain payment information made by the buyers.

4. Electronic Commerce (E-commerce). - This refers to any commercial transaction conducted through electronic, optical, and similar medium, mode, instrumentality and technology. The transaction includes the sale or offer for sale, purchase of physical or ligital goods and services, or lease or offer for lease of the same, between individuals

through the Intermet, mobile phones, electronic data interchange (EDI), or other electronic channels through open or closed networks. These may be digitally ordered, households, businesses, and governments conducted over computer-mediated networks digitally delivered or platfom-enabled transactions.

For purposes of these Regulations, internet transactions shall also refer to e-commerce.

5. Internet Transaction. -- This refers to the sale or offer of sale, or Iease or offer for lease. of digital or non-digital goods and services over the internet.

SECTION 3. POLICIES AND GUIDELINES. - A!I taxpayerS mandated to comply with these Regulations shall observe the policies and guidelines set forth herein. A separate revenue issuance shall be provided for the details and specific requirements hereof.

A Issuance of Electronic Invoice. The following taxpayers are mandated to issue clectronic invoices in a structured invoicc data which can be easily extracted electronically from the invoice and can be readily transmitted to the BIR for electronic sales reporting:

I Taxpayers engaged in electronic commerce (e-comimerce) or intemet

2 Taxpaycrs under the jurisdiction of the Large Taxpayers Service (LTS): transactions:

3 Taxpayers classified as Large Taxpayers under RA No. 11976 (Ease of Paying

5. Upon the establishment by the BIR of a system capable of storing and processing 4 Taxpayers using Computerized Accoumting System (CAS), and Computerized Books of Accounts (CBA) with Accounting Records (with electronic invoicing) the required data to be transmitted to it, the following taxpayers are mandated to and other invoicing software; and issuc electronic invoices: Taxes Act) and RR No. 8-2024;

Hi. Registered Business Enterprises availing of Tax Incentives under Section iv. Other taxpayers as may be required by the Commissioner. ii. Taxpayers using Point-of-Sales (POS) System; and Taxpayers engaged in the export of goods and services pursuant to Sections hereof; 304(D) of the Tax Code, as amended, except those falling undcr Section 106 and 108 of the Tax Code, except those falling under Section 3(A)(4) 3{A}{4) hereof;

In case the above taxpayers or business activities are registered as a Branch Office, the electronic invoices. taxpayers' Head Officc and all its Branch Offices shall also be mandated to issue

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invoicing software shall be mandated to generate a system-generated invoice in a transmitted electronically to the BIR for electronic sales reporting. structured invoice data that can be easily extracted electronically and can bc readily All CAS, CBA with Accounting Records (with electronic invoicing), or other

Invoices generated by a CAS, and CBA with Accounting Records (with electronic invoicing), Cash Register Machines (CRM), POS System, or other invoicing software invoices. and subsequently printed on paper for issuance to buyers, without the capability or readiness to electronically report the salcs and invoice data, shall not qualify as electronic invoices. Instead, they shall be classified as traditional, manually issued

B. Electronic Sales Reporting Requiremcnts (as defined in Section 2(3) of these covered by the Electronic Sales Reporting System requirement under Section 237-A of the Tax Code, as amcrded: Regulations). Upon establishment by the BIR of a system capable of storing and processing the required data to be transmitted to it, the following taxpayers shall be

1. Taxpayers engaged in electronic commerce (e-commerce) or intemet

R Taxpayers under the jurisdiction of the Large Taxpayers Service (LTS); Taxpayers classified as Large Taxpayers under RA No. 11976 (Ease of Paying transactions, classified as Small, Medium and Large Taxpayers;

4 Taxpayers using CAS, and CBA with electronic invoicing and other invoicing Taxes Act) and RR No. 8-2024:

S. Taxpayers engaged in the export of goods and services pursuant to Scctions 106 software.

6. and 108 of the Tax Code: Registered Business Enterprises availing of Tax Incentives under Section

8. Other taxpayers as may be required by the Commissioner. I Taxpayers using POS System; and 304(D) of thc Tax Code, as amended:

to the rules and regulations to be issued by the BIR for this purpose. Said taxpayers are required to electronically report their sales data to the BIR, subject

In case the above taxpayers or business activities are registered to a Branch Office, the taxpayers' Head Office and all its Branch Offices shall also be covered by electronic sales reporting.

C. Taxpayers Engaged in E-commerce. For purposcs of these Regulations, taxpayers engaged in e-commerce shall cover persons, whether natural or juridical, who are engaged in the following trade or business in the Philippines, including but not limited ta

L E-commerce or online businesses, whether foimal or informal, including sale,

in online games), digital content/products, digital financial services, entertainment services, social commerce, on-demand Iabor and repair services, and property and space rentals: procuiement. or availment of physical or digital goods (including virtual items

2 Operation of digital platforms, including e-marketplace platforms;

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3 4 Sale and/or lease of goods and services through digital platforms; Digital content creation and streaming that are income generating including

6. Sale of creative or professional services, on-demand or freelance services or online advertising, blogging/vlogging, subscription or commission; E-retailing of goods and services;

8. 9 Transport and Delivery Services contracted through an online platform, Other form of businesses other than those mentioned above which are On-demand Services over the internet, available whenever a customer request them, rather than being provided on a fixed schedule such as, but not limited to, ride-sharing, food delivery, grocery delivery, home services (like cleaning application, website, webpage or other similar platform operated by the tommerce in the Philippines; and provider, regardless of whether the provider is authorized to engage in e- digital services supplied over the internet; or repairs), and streaming entertainment;

conducted online.

D. Additional Allowable Deductions for Taxpayers using Both Electronic Invoices and 3(B) of these Regulations, including those taxpayers who voluntarily complied both with the issuance of electronic invoice and electronically report their sales data to the BIR, shall be granted the following deduction from their taxable income and Electronic Sales Reporting System. -- All taxpayers required under Section 3(A) reporting system, in addition to the allowable deduction under Section 34(A)(1) of the Tax Code, as amended: amounting to certain percentage of the total cost for setting up an electronic sales

2. Medium and Large Taxpayers ", Micro and Small Taxpayers Taxpayer Classification 100% of the total cost for setting up an 50% of the total cost for setting up an electronic sales reporting system electronic sales reporting system Allowed Additional Deductions from Taxable Income

year the electronic sales reporting system has been completed or final payment has The foregoing allowable deduction shall be availed of only once within the taxable been made. The importation of such electronic sales reporting system shall also be exempt from taxes.

SECTION 4. EXEMPTION FROM THE MANDATORY REQUIREMENTS TO ISSUE AN ELECTRONIC INVOICE. -- In line with the Ease of Doing Business and Ease of Paying Taxes, all taxpayers classified as Micro Taxpayers under Section 3(A)(1), 3(A)(4) 3(A)(5)(i), 3(A)(5)(ii), 3(A)(5)(iii) and 3(A)(5)(iv) of these Regulations, shaIl be exempted from the mandatory requirement to use and issue electronic invoice. However, this exemption does not preclude Micro Taxpayers who are already using electronic invoices, if any, or those who choose to voluntarily use them.

In the absence of an electronic invoice, Micro Taxpayers shall issue a registered manual invoice, They may also use CAS, CRM, and POS System, in lieu of electronic invoices.

SECTION 5. PENALTY PROVISIONS. - Any violation of or non-compliance with these Regulations shall be subject to the penalties as defined in Sections.264 and 264-A of the Tax Code.

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SECTION 6. TRANSITORY PROVISIONS. - Taxpayers covered under Section 3(A)(1) to (3) have a period of one (1) year from the effectivity date of these Regulations to comply with the electronic invoicing requirements (issuance of clcctronic invoice).

shall be issued for this purpose. BiR, all taxpayers covered under Sections 3(A)(5)(i),3(A)(5)(ii), 3(A)(5)(i) and 3(A)(5)(iv) Upon the establishment of a system capable of storing and processing the required data by the and 3(B) of these Regulations shall be mandated to comply with the issuance of electronic invoice and Electronic Sales Reporting System requirements. A separate Revenue Regulations

subscquently declared invalid or unconstitutional, the validity of the remaining provisions hereof shall remain in full force and effect. SECTION 7. SEPARABILITY CLAUSE. - If any of the provisions of these Regulations is

SECTION 8. REPEALING CLAUSE. -- AIl other issuances and rules and regulations or parts thereof which are contrary to and inconsistent with the provisions of these Regulations arc hereby repealed, amcnded or modified accordingly.

first. SECTION 9. EFFECTIVITY. - These Regulations shall take effect fifteen (15) days following its publication in the Official Gazette or the BIR Official Website, whichever comcs

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Segfetary of Finance ALPH G.RECTO F}8 2 6 2025 Recommending Approval:

ROMEO1 3 yu'ssioner of Internal Revenue LOMAGEI. JR. 2

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