For years, freelancers and other service providers in the Philippines issued official receipts (ORs) when they got paid. That changed with the Ease of Paying Taxes (EOPT) Act.
Now, the invoice is the main document that proves a sale of services. If you still have a pad of ORs in your drawer, here's what you need to know.
What changed
Under the EOPT Act and its rules (Revenue Regulations 7-2024, later amended by RR 11-2024), the invoice replaced the official receipt as the primary evidence of a sale of services.
Starting January 1, 2025, an official receipt is no longer valid proof of a sale. Freelancers should be issuing invoices for their services.
Before and after the EOPT Act
| Before EOPT | Now | |
|---|---|---|
| Main document for a sale of services | Official receipt | Invoice |
| When it was usually issued | When payment was received | For each sale of your services |
| Old official receipts | Standard document | No longer valid as proof of sale from January 1, 2025 |
What about my unused official receipts?
The transition rules allowed unused ORs to be used as invoices by marking them with the word "Invoice". This let taxpayers use up their existing stock instead of throwing it away.
Rules on how long converted receipts can be used, and what to do with leftover stock, have been clarified more than once. Before you use any old ORs, check with your RDO whether your remaining pads can still be used or should be surrendered.
Don't hand out plain ORs
Issuing an unconverted official receipt as your only proof of sale no longer meets the rules. If you are unsure whether your old pads are still usable, ask your RDO before you issue another one.
Do I need to issue invoices to foreign clients?
Yes. The duty to issue an invoice applies to your sales, not just to local clients. A client in the US, Australia or anywhere else doesn't need a BIR invoice for their own taxes, but you need it for your records.
The invoice is your proof of what you earned. It ties your platform payouts and bank deposits to the gross receipts you report on your returns.
For platform work, one practical approach is to issue an invoice for each payment or billing period, then keep it with the platform's statement. Ask your RDO if you're unsure how to handle many small payments.
US clients and Form W-8BEN
A BIR invoice is separate from US paperwork. If you work from the Philippines for US clients, you generally give the client or platform Form W-8BEN so they don't withhold 30% US tax. You still issue your own BIR invoice.
What a valid invoice generally contains
The BIR sets out what must appear on an invoice, and the details can depend on your registration and whether you're VAT-registered. As a general guide, an invoice usually shows:
- The word "Invoice"
- Your registered name and business address, as shown on your COR
- Your TIN
- A serial number
- The date of the transaction
- Your client's name and, where required, their address and TIN
- A description of the service
- The amount charged
- For non-VAT freelancers, a clear indication that you are not VAT-registered
- Printer or system details, where required
Printed invoices vs system-generated invoices
If you use printed invoices, they must come from a BIR-accredited printer with the proper authority from the BIR. You can't just print your own on a home printer and call them official.
If you use software to generate invoices, it may need to be registered with the BIR. The rules differ from printed invoices, so ask your RDO before you rely on an app.
Why invoices matter for percentage tax
For non-VAT freelancers on graduated rates, the EOPT rules changed the basis of the 3% percentage tax on services. It is now based on what you bill (the accrual basis), not only on what you collect.
That makes your invoice dates important. A service you billed in March counts for the first quarter, even if the client paid in April.
If you're on the 8% option, you don't file percentage tax. You still need invoices for every sale.
Common questions
- My client never asked for an invoice. Do I still issue one? Yes. The invoice is a BIR requirement for you as the seller, whether or not the client asks for it.
- The platform pays me, not the client. Do I still issue one? Yes. You still made a sale. Keep the invoice with the platform statement that shows the payout.
- I issued an invoice by mistake. What now? Don't throw it away. Keep all copies, mark it as cancelled, and ask your RDO how to record it properly.
- Does issuing invoices change my 8% tax? No. Your tax is still based on your gross receipts. The invoice is the proof behind those numbers.
Quick checklist
- Stop issuing plain official receipts.
- Ask your RDO what to do with any unused ORs.
- Set up printed or system-generated invoices that meet BIR requirements.
- Issue an invoice for every sale, including to foreign clients.
- Record each invoice in your books of accounts.
- Keep copies of every invoice with the matching payment record.
Bottom line
Invoices are now the standard for freelancers. Issue one for every sale, local or foreign, and check with your RDO before using old receipts. Run our compliance check to see if your invoicing is up to date.