Philippines e-Invoicing Tax Deductions Under CREATE MORE Act

The Philippines is advancing digital tax compliance with the CREATE MORE Act (Republic Act No. 12066, enacted late 2024), offering businesses a unique chance to save on e-Invoicing setup costs.

This legislation provides tax deductions for adopting the Bureau of Internal Revenue?s (BIR) Electronic Invoicing System (EIS), ahead of the mandatory March 2026 deadline. This blog explains the Act?s e-Invoicing incentives, eligibility, and steps to comply, helping businesses prepare effectively.

What does CREATE MORE Act mean for e-Invoicing

The CREATE MORE Act accelerates the Philippines? e-Invoicing mandate by removing the five-year implementation timeline set by the TRAIN Law, signaling urgency for businesses to adopt the EIS.

It offers tax deductions for expenses related to setting up e-Invoicing systems, such as software and training for issuing BIR-required digital invoices and reporting sales data.

Key e-Invoicing provisions:

> Micro and small taxpayers: 100% deduction on e-Invoicing setup costs.

> Medium and large taxpayers: 50% deduction on these costs.

> Voluntary adopters (businesses not yet mandated) are also eligible for these deductions.

> Eligible Costs: Include software for BIR-required digital invoices, digital signature tools, and EIS integration.

Who Qualifies: Large taxpayers, e-commerce businesses, exporters, and voluntary adopters can claim deductions.

• These deductions make 2025 an ideal year to adopt e-Invoicing, reducing your tax burden while ensuring compliance.

The March 2026 e-Invoicing deadline

The BIR requires large taxpayers, e-commerce businesses, and exporters to fully adopt e-Invoicing by March 14, 2026, as outlined in Revenue Regulation No. 011-2025 (published February 27, 2025).

Businesses must:

• Issuing e-invoices in BIR-specified formats with digital signatures.
• Reporting sales to EIS within three days.
• Registering with the EIS Certification Portal.

Failure to comply may lead to penalties under Section 264-A of the Tax Code.

• Starting in 2025 allows businesses to claim deductions now and test systems before the deadline.

How to claim tax deductions

To benefit from the Act?s deductions, follow these steps:

1. Track Expenses: Record costs for e-Invoicing setup, like software or EIS integration. Solutions like Taxilla provide compliance reports to simplify tracking.
2. Use a Compliant System: Adopt a BIR-compliant, such as Taxilla, to create digital invoices and connect with the EIS.
3. File Deductions: Include documented costs in your 2025 tax returns, specifying your taxpayer category. Consult a tax professional for accuracy.
4. Keep Records: Maintain proof of EIS registration and expenses for BIR audits.

• Accurate expense tracking is key to maximizing deductions, as the BIR may verify claims.

Strategic Considerations

• Start Early: Implement e-Invoicing in 2025 to claim deductions for the 2025 tax year.
• Train Staff: Ensure teams understand digital invoicing to avoid errors.
• Choose Trusted Solutions: Platforms like Taxilla ensure BIR compliance, simplifying setup.
• Stay Updated: Monitor BIR announcements for deduction clarifications.

• Small businesses, like local exporters, can adopt voluntarily to claim 100% deductions and prepare for future mandates.

Final thoughts

The CREATE MORE Act makes e-Invoicing a financial win for Philippine businesses, with tax deductions of up to 100% for setup costs.

By acting in 2025 and using BIR-compliant solutions like Taxilla, businesses can save on taxes and meet the March 2026 EIS deadline. Start planning today to turn compliance into an opportunity.

Learn more: Visit our e-Invoicing solution for-compliance guide and book a free demo now.

Disclaimer: Consult the BIR or a tax professional for specific advice on deductions and compliance.

Source: Bureau of Internal Revenue