If you provide professional services, freelance work, or run a service business in the Philippines, the EOPT Act changed how you document sales.
Under the Ease of Paying Taxes (EOPT) Act, Republic Act No. 11976, the Bureau of Internal Revenue (BIR) made invoices the principal sales document for both goods and services. For service providers, that means issuing an invoice instead of using an Official Receipt as the primary proof of sale.
This guide covers the shift from Official Receipts, the transition rules for converted unused receipts, invoice-format requirements, and the process for getting compliant invoice booklets.
If you are setting up a freelance business, complete the BIR registration process before arranging your invoicing and recordkeeping requirements.
1. Sales Invoice vs. Official Receipt
Philippine tax rules previously separated documents for goods and services:
- Sellers of goods issued Sales Invoices.
- Sellers of services issued Official Receipts.
The EOPT Act replaced that split. An Invoice is now the principal sales document for both goods and services.
When you render a service, record the sale through an invoice whether the client pays immediately, on credit, or in installments.
The new role of Official Receipts
Official Receipts have not been banned. They are now supplementary documents that acknowledge collection or payment. They no longer serve as the primary proof of a sale.
| Document type | Role under the EOPT Act | Tax status and input VAT validity |
|---|---|---|
| Invoice | Primary sales document | Supports allowable deductions, subject to substantiation rules. Input VAT claims require an eligible VAT-registered buyer and a qualifying VAT invoice; non-VAT invoices do not support input VAT claims. |
| Official Receipt | Supplementary document | Proof of collection only; not valid for claiming input VAT credits. |
| Collection Receipt | Supplementary document | Acknowledges installment payments or deposits; not valid for input VAT. |
| Billing Statement | Supplementary document | A payment request or reminder, not primary proof of sale. |
If you provide freelance services and issue only an Official Receipt as the primary proof of sale in 2026, you may be in violation of the invoicing rules.
2. Transition rules for converted Official Receipts
During the initial EOPT rollout, the BIR allowed taxpayers to convert unused Official Receipt booklets into invoices under Revenue Regulations No. 7-2024 and No. 11-2024.
Taxpayers could strike through “Official Receipt” and stamp “Invoice,” “Sales Invoice,” or “Service Invoice” on the document. To use this transition, they had to submit an inventory report of unused receipts to the BIR by July 31, 2024.
Based on Revenue Memorandum Circular (RMC) No. 77-2024, converted Official Receipts can be used until fully consumed. The same issuance states that taxpayers who use Official Receipts as supplementary documents must stamp each page with “THIS DOCUMENT IS NOT VALID FOR CLAIM OF INPUT TAX.”
3. Mandatory fields for EOPT-compliant Service Invoices
Your invoice layout needs specific details. The EOPT Act removed the former requirement to state a “Business Style,” but the remaining core information must still appear on the document.
Complete and accurate invoices are important to your compliance as a seller. When you are the buyer, you also need compliant invoices from your suppliers or service providers.
Required information in invoices
-
Document label: “Invoice” or a descriptive label such as “Service Invoice” must appear prominently at the top.
-
Seller identity:
- Full registered business name, as shown on the BIR Certificate of Registration
- Taxpayer Identification Number, followed by the three-digit or five-digit branch code
- “VAT REG” for VAT taxpayers or “Non-VAT REG” for non-VAT taxpayers, shown beside the TIN
- Registered business address
-
Invoice control: A unique pre-printed serial number and a blank space for the transaction date.
-
Buyer information:
- Buyer’s registered name, or customer name for B2C transactions
- Buyer’s registered business address
- Buyer’s TIN
-
Transaction details:
- Description of the services rendered
- Quantity, unit cost, and total transaction amount
-
Tax and financial breakdown:
- For VAT invoices: the VAT-inclusive total, with the 12% VAT shown separately. If the invoice includes VATable, zero-rated, and VAT-exempt sales, show separate breakdowns.
- For non-VAT invoices: the total sales amount and the statement: “THIS DOCUMENT IS NOT VALID FOR CLAIM OF INPUT TAX.”
-
Creditable Withholding Tax (CWT): Show the CWT amount, if applicable, as a separate line item on the invoice, using the phrase “Less: Withholding Tax.” This requirement was added to Section 6(B) of RR No. 7-2024 by RR No. 6-2026.
-
Authority details: The bottom of the invoice should include the printer’s accreditation number, Authority to Print number, and approved inclusive serial numbers for the booklets.
4. How to secure manual Service Invoice booklets
For manual Service Invoice booklets, obtain an Authority to Print (ATP) and use a BIR-accredited printer. The steps below cover manual booklets, not loose-leaf or electronic invoicing systems.
Step 1: Submit BIR Form 1906 through ORUS
Log in to the BIR ORUS Portal, go to “Secondary Registration,” and select “Authority to Print (ATP) Invoices.”
If you are also setting up your records, see how to register books of accounts through ORUS.
Complete electronic BIR Form 1906 and submit your business details. You may also submit physical copies of Form 1906 through the Client Support counter at your Revenue District Office.
Step 2: Work with an accredited printer
Do not print official invoices on a regular home printer. Select a printer from the BIR’s list of accredited printers.
Send the printer your proposed Service Invoice layout, making sure it includes the required fields. The printer will coordinate with the RDO to produce serialized invoice booklets.
Step 3: Use temporary BIR Printed Invoices, if needed
Custom printed booklets can take one to two weeks. While waiting, you may purchase BIR Printed Invoices from the New Business Registrant Counter at your RDO.
These can serve as temporary invoices that you can issue to clients while your custom booklets are being printed.
5. Issuance thresholds and compliance rules
Small businesses, including sari-sari stores, often need to determine when to issue an invoice.
- VAT-registered sellers: Issue a VAT Invoice for every transaction, regardless of the amount.
- Non-VAT sellers: Issue an invoice for transactions worth PHP 500 or more, or for any amount when the buyer asks for one. If the day’s total of transactions below PHP 500 without individual invoices exceeds PHP 500, issue one consolidated invoice for those transactions.
6. Penalties for non-compliance
The BIR may impose penalties for invoicing violations under the EOPT framework.
-
Issuing an Official Receipt as a primary document: Using an Official Receipt instead of an invoice for a sales transaction in 2026 may be treated as a failure to issue an invoice. The stated penalty is PHP 1,000 to PHP 50,000, with imprisonment of two to four years upon conviction under Section 264(a) of the Tax Code. See the invoicing violations described in RR 11-2024, Section 8(4).
-
Using an incorrect invoice format: Check required details against RR 7-2024, Section 6(B). The applicable penalty depends on the specific violation; do not assume one fixed amount applies to every missing detail.
-
Failing to submit receipt inventories: RR 11-2024, Section 8(2.3) required an inventory for unused receipts to be converted into invoices. If this requirement was missed, confirm the applicable treatment with your RDO.
EOPT invoicing compliance checklist
- Stop using Official Receipts as the primary sales document for services. Use Service Invoices instead.
- For manual booklets, submit BIR Form 1906 through ORUS to apply for Authority to Print.
- Have manual booklets printed by a BIR-accredited printer, or buy temporary BIR Printed Invoices from your RDO.
- Check that your invoice includes the registered name, TIN, VAT or non-VAT registration marker, serial number, and required tax breakdown, including a separate CWT amount when applicable.
- Business style is no longer a required field under EOPT.
- Issue a Service Invoice for every transaction if you are VAT-registered, or for transactions of PHP 500 or more if you are non-VAT.
- Issue one consolidated invoice for non-VAT transactions below PHP 500 without individual invoices when their daily total exceeds PHP 500.
Frequently asked questions
Can service providers still issue Official Receipts under the EOPT Act?
Official Receipts may still acknowledge collections or payments, but they are supplementary documents. An Invoice is now the primary sales document for services, whether the client pays immediately, on credit, or in installments.
Can I keep using Official Receipts converted into invoices?
Converted Official Receipts can be used until fully consumed if you followed the transition requirements, including submitting the inventory report by July 31, 2024 and marking the documents as invoices. Official Receipts used as supplementary documents must carry the required statement that they are not valid for claiming input tax.
Can I print manual Service Invoice booklets on a home printer?
No. For manual booklets, apply for an Authority to Print through ORUS or your RDO and use a BIR-accredited printer. While waiting for custom booklets, you may buy temporary BIR Printed Invoices from your RDO. Loose-leaf and electronic invoicing systems have separate requirements.
What information must a non-VAT Service Invoice show?
It must include the invoice label, registered seller details, TIN and branch code, non-VAT registration marker, business address, serial number, date, buyer and transaction details, total sales amount, and the statement: “THIS DOCUMENT IS NOT VALID FOR CLAIM OF INPUT TAX.” Show the CWT amount separately when applicable. Printer accreditation and Authority to Print details also appear at the bottom.
When must I issue an invoice to a customer?
VAT-registered sellers issue a VAT Invoice for every transaction. Non-VAT sellers issue an invoice for transactions of PHP 500 or more, or when the buyer requests one. If transactions below PHP 500 without individual invoices total more than PHP 500 for the day, issue one consolidated invoice for those transactions.