How to make an invoice?

If you have ever searched for how to make an invoice because your client asked for one and you weren’t sure where to start, you are not alone. Every freelancer and business owner in the Philippines eventually has to send one, and get the format, details and government registrations.

This guide walks you through what an invoice needs, how to build it manually, and what changes for freelancers, business owners, or one-off service providers.

Importance of invoicing for business

An invoice is a legally binding financial document that a seller issues to a buyer to request payment for goods or services provided.¹

Beyond requesting payment, an invoice creates a paper trail for tax reporting and protects both business and client if a dispute comes up later. In the Philippines, the Bureau of Internal Revenue (BIR) requires an invoice, not just any billing note, to confirm a sale for VAT purposes.¹

Skip the invoice or get the details wrong, and a business risks unhappy clients or complications at tax time.

Do I need to register my business to issue invoices in the Philippines?

Yes. Freelancers and small business owners need to register with BIR, secure a TIN, and get an ATP before issuing compliant invoices. Registration is done once (not annually), with the Revenue District Office (RDO) that has jurisdiction over your head office/branch or place of business. As part of registration, you’ll secure a TIN and receive a Certificate of Registration along with the approved Authority to Print (ATP)⁷. You will also have registered books of accounts needed to issue compliant invoices⁸.

Key components of an invoice

Every invoice, however it is formatted, needs to reflect what actually happened in the transaction. The BIR’s sample invoice format spells out exactly what a compliant invoice must show.² At a minimum, that includes the following:

• The word “Invoice” printed prominently: Any description works as long as “Invoice” is clearly visible on the page.
• Seller’s registered information: Business name, address, and contact details as they appear on your BIR Certificate of Registration, plus your VAT or non-VAT registration statement and TIN with branch code.
• Serial number and date of transaction: An invoice number is the BIR-approved serial number on the invoice. It is a unique reference number used for tracking payments and for audits. The date of issue is next to it.
• Client’s name and contact details: Space for the client’s name, TIN, and business address.
• Description, quantity, unit price, and total: A line-by-line breakdown of what was sold, with the math a client can check without asking questions.
• Applicable taxes and discounts: VAT invoices break VATable, zero-rated, and VAT-exempt sales into separate lines. For non-VAT invoices, a “THIS DOCUMENT IS NOT VALID FOR CLAIM OF INPUT TAX**” in bold is needed.³
• Authority to Print (ATP) details. The ATP number and date issued, BIR permit number, and the approved serial range for the booklet.

How to make an invoice?

If you are searching for how to create an invoice for the first time or just want a better process than the last time, here is the order that works for most manual invoices in the Philippines:

Step 1: Choose your invoice format

Decide whether you will use a manually printed invoice or another BIR-compliant invoicing method. If you are using manual invoices, you can create your own invoice format and submit a final sample when applying for an Authority to Print (ATP). Once approved, the invoice can be printed by an accredited printer.

Step 2: Add your business and client details

Fill in your registered business name, address, and contact details, followed by the client’s details. If you are learning how to write an invoice for a new client, make sure to double-check the spelling and accuracy of those details.

Step 3: Assign an invoice number and date

Give the invoice a sequential number and the date it is issued. Skipping numbers or reusing them may cause problems later, especially during a tax audit.

Step 4: List the goods or services

List exactly what you are billing for with quantity and unit price for each line.

Step 5: Calculate taxes and the total due

Add any tax where it applies, then total everything so the client sees one final figure.

Step 6: Set payment terms

State the due date, accepted payment method, and any late payment terms. This is also where invoice payment terms like “due within 15 days” go.

Step 7: Review and send

Check every field against the actual transaction and send the invoice to the client. Don’t forget to save a copy for your own records.

Every step above is manual work done one invoice at a time. Wise offers a free invoice generator that handles the formatting automatically, and a Wise Business account adds payment tracking and card payments in whichever currency a client prefers.

Different types of invoices available for businesses to create

Depending on the situation, a freelancer or small business might issue several types of invoices. They are primarily categorized into two official tax types¹:

VAT Invoice: Issued for the sale of goods, properties, or services that are subject to Value-Added Tax (VAT). This document is crucial as it serves as the basis for the seller's output tax liability and the buyer's input tax claim. It applies whether the sale is cash, charge, or on credit.

Non-VAT Invoice: Issued for sales that are not subject to VAT. This serves as the basis for the seller's Percentage Tax liability, if applicable. Like the VAT invoice, it applies to both cash and credit transactions.

Depending on the nature of the transaction and how the customer pays, these principal VAT or Non-VAT invoices generally take one of the following forms:

• Sales Invoice or Service Invoice: The standard invoices issued to evidence the sale of goods (Sales) or the rendering of services (Service).
• Cash Invoice: Issued specifically when goods or services are paid for in cash at the time of the transaction.
• Charge / Credit Invoice: Issued when the sale of goods or services is made on account (credit) rather than paid upfront.
• Commercial Invoice: Other officially recognized variations used to record transactions in the ordinary course of trade or business.

(Note: In the Philippines, these invoices not only record the sale but may also legally serve as a written admission or acknowledgment that a transaction or payment has taken place.)

Making an invoice for specific situations

Not every invoice looks the same. Some transactions may call for slightly different details.

How to make an invoice as a freelancer?

Freelancers in the Philippines who want to make an invoice generally need their own business name, TIN, description of the service provided, agreed rate, and payment date. A sales or billing invoice usually covers most freelance work, and it should be issued under a BIR-registered series once the freelancer has completed registration and secured an ATP.⁴

How to make invoice for salary?

For salaried employees, payroll handles invoices for regular pay, so there's no need to make one. For independent contractors, a billing invoice format works well since the payment usually repeats and should contain the name, service period, agreed payment, and terms.

How to make reimbursement invoice?

A reimbursement invoice covers expenses paid on a client’s behalf. Employees usually do not issue their own invoices but instead should submit Official Receipts (OR). If the OR is not provided, a government-standardized Reimbursement Expense Receipt should suffice.⁵

For freelancers or independent contractors, you have to include expenses as separate items in your invoice and note that the amount is a reimbursement, not a service fee.

Common challenges involved with creating invoices

Small errors in numbering, required information, calculations or payment details can create unnecessary problems. Here are some common invoicing challenges to watch out for.

• Getting the numbering wrong: Reusing invoice numbers or issuing invoices out of sequence leaves gaps that are difficult to explain during a BIR audit and makes it harder to track which invoices are still unpaid.
• Missing mandatory fields: Leave out one field, and the invoice may not hold up as proof of transaction. A client who needs it for their records may reject it outright and ask you to issue another one.
• Manual calculation errors: Adding tax or discounts by hand can lead to mistakes. One miscalculation is annoying, but errors across multiple invoices gets flagged in an audit.
• Invoicing across borders: When a client pays from another country, exchange rates and transfer fees make a straightforward invoice into a longer wait for payment. Even with every field correct, you’re often left wondering how much you're getting once conversion fees are taken out.

Wise Business: For global invoices in multiple currencies

• Send from PHP with both Instapay and Pesonet.
• Fast and secure payments to 140+ countries with no exchange rate markups.
• Always get the mid-market rate with transparent conversion fees starting from 0.57%.
• Set up Batch Payments to make up to 1,000 payments in a single click.

➡️Start Paying Overseas Invoices with Wise Business

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Wise Pilipinas Inc. is regulated by the Bangko Sentral ng Pilipinas. You may visit the BSP website for more information about its regulatory framework and consumer protection policies. To reach Wise, visit help center here.

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Frequently asked questions

1. Is invoice and receipt the same?
No. An invoice requires payment and is the primary proof of transaction, while a receipt confirms payment was received and is only a supplementary document for tax purposes.¹

2. What should I do if a client doesn’t pay an invoice on time?
You can send friendly reminders to follow-up on the payment. If that doesn’t work, a formal demand letter should. For worst-case scenarios, the Philippines allows you to file a small claim case without a lawyer if you’re owed less than PHP 1,000,000.00¹⁰

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Sources

1. BIR Revenue Regulations no. 7-2024
2. BIR Revenue Memorandum Circular no. 077-2024
3. BIR Sales Invoice Format
4. Application of Authority to Print (ATP
5. COA Reimbursement of Expenses
6. BIR Registration
7. BIR Citizen’s Charter 2026 1st Edition
8. BIR Revenue Memorandum Order No. 19-2018
9. Wise Invoice Generator
10. SC Judiciary Information for the Small Claims Plaintiff