RR 11-2025 Digest

RR No. 11-2025 (February 27, 2025) implements Sections 237 and 237-A of the Tax Code as amended by RA No. 12066 (CREATE MORE). It mandates specified taxpayers - e-commerce/internet transaction taxpayers, those under the Large Taxpayers Service, large taxpayers under RA 11976/RR 8-2024, and users of CAS, CBA with electronic invoicing, or other invoicing software - to issue electronic invoices in structured data readily transmittable to the BIR; once the BIR establishes a capable system, exporters under Sections 106/108, RBEs availing of tax incentives under Section 304(D), POS users, and others designated by the Commissioner are also covered. Head offices and all branch offices of covered taxpayers are likewise covered. Covered taxpayers must also electronically report sales data to the BIR. Micro taxpayers are exempt from the mandatory e-invoicing requirement but may use e-invoices voluntarily or issue a registered manual invoice. Covered taxpayers (including voluntary compliers) may claim an additional deduction from taxable income - 100% of setup cost for micro/small and 50% for medium/large taxpayers - claimable only once, and importation of the electronic sales reporting system is exempt from taxes. Taxpayers covered under Section 3(A)(1) to (3) have one year from effectivity to comply.