The Philippine Exporters Confederation, Inc. (PHILEXPORT) is urging the Bureau of Internal Revenue (BIR) to defer mandatory electronic invoicing for one year, warning that a year-end rollout could strain exporters and disrupt supply chains.
In a September 23 letter to BIR Commissioner Charlito Martin Mendoza, PHILEXPORT President Sergio Ortiz-Luis Jr. supported moving the Electronic Invoicing System (EIS) implementation deadline to December 31, 2027. The appeal followed Revenue Memorandum Circular No. 98-2026, issued September 22, which set out implementation guidelines for covered taxpayers.
PHILEXPORT said businesses have fewer than four months to reconfigure enterprise resource planning systems, integrate and test software, and train employees. The group noted that draft technical guidelines were released for consultation only in late August, leaving companies with limited time to prepare for a complex transition.
“A forced year-end transition risks massive operational disruptions,” Ortiz-Luis said.
The potential impact extends beyond companies directly covered by the mandate. PHILEXPORT warned that compliance problems among large exporters could ripple through their supply chains, potentially delaying transactions and payments to smaller suppliers.
Although micro enterprises are exempt from the initial requirement, Ortiz-Luis said they remain exposed because many depend on larger taxpayers and direct exporters. Disruptions at those companies could therefore affect the cash flow and continuity of smaller businesses.
The initial EIS mandate covers large taxpayers, e-commerce businesses and users of computerized accounting and invoicing systems. PHILEXPORT also stressed that emailed PDF invoices or documents created through ordinary office applications do not automatically meet the definition of valid electronic invoices.
The group is asking the BIR to use the proposed transition period to develop sector-specific technical toolkits, establish dedicated helpdesks and provide stable testing environments, allowing businesses to complete compliance preparations without jeopardizing ongoing operations.
