Fill in the left, watch the billing statement build itself on the right. 12% VAT breakdown, creditable withholding tax, GCash payment notes — then print or save as PDF. Nothing is uploaded; your draft is saved in this browser automatically.
| Description | Qty | Unit price | Amount |
|---|
Draft auto-saved in this browser only. Print uses A4, black on white.
When your client is a business (a corporation, or a sole proprietor engaged in trade), they usually act as a withholding agent: they deduct creditable withholding tax from your fee and remit it to the BIR on your behalf. Professional fees paid to individuals are commonly withheld at 5% if your gross income for the year is ₱3,000,000 or below and you gave the client a sworn declaration — otherwise 10%. A 2% rate typically applies to certain contractors and service providers. The withheld amount is not lost money: your client issues you BIR Form 2307, and you credit it against your income tax due. When in doubt, ask your client's accountant which rate they apply.
If you are not VAT-registered, you generally pay the 3% percentage tax on gross receipts (filed quarterly on BIR Form 2551Q) — unless you elected the 8% flat income tax option, which replaces both the percentage tax and the graduated income tax. Not sure which option saves you more? Run your numbers through our free 8% vs graduated tax calculator.
The document this tool produces is a service invoice / billing statement — the paper you send so your client knows what to pay and how. It is not your BIR-registered invoice: that one has to be printed by a BIR-accredited printer under an Authority to Print, or generated by a registered CAS/POS or e-invoicing system. And since the Ease of Paying Taxes Act, the registered invoice — not an official receipt — is the principal document for services too. That change caught a lot of freelancers out, so it's worth the next few paragraphs.
For decades the rule was easy to state and easy to get wrong: a sales invoice covered the sale of goods, and an official receipt (OR) covered the sale of services. Freelancers, agencies, consultants and contractors were OR people.
That flipped. Republic Act No. 11976, the Ease of Paying Taxes (EOPT) Act, signed in January 2024 and implemented by BIR Revenue Regulations No. 7-2024 (amended by RR No. 11-2024, clarified by RMC No. 77-2024), made the invoice the principal document for both goods and services. The official receipt was demoted to a supplementary document: it acknowledges that money changed hands, but it is no longer proof of the sale itself, and a VAT-registered buyer cannot use it to claim input VAT.
For a service business, that means four practical things:
Where this tool sits. The document above is a billing statement — the paper that tells a client what to pay, to whom, and by when. Printing it does not satisfy your invoicing obligation, and it will not support your client's input VAT claim. Use it to get the payment moving; issue your BIR-registered invoice for the sale itself.
A registered invoice is not a design exercise — the BIR prescribes what has to appear on it. This is the working checklist, and the fields in the generator above map onto it.
| What | Why it's there |
|---|---|
| Registered name | The name on your BIR Certificate of Registration (Form 2303) — not just your trade name. Under RR 7-2024 the old "business style" field is no longer required, though you may still print a store or trade name for branding. |
| TIN, with branch code | Your 000-000-000-000 TIN including the branch code (usually 000), which identifies the registered place of business issuing the document. |
| VAT / non-VAT status | A registered invoice has to say which you are. VAT sellers state that they are VAT-registered; non-VAT sellers carry a "Non-VAT registered" line — the toggle above adds the equivalent note. |
| Business address | The registered address of the head office or branch issuing the invoice. |
| Date and serial number | Date of the transaction plus an unbroken serial number. Keep one running sequence per registered booklet or system — gaps are an audit question. |
| Buyer's name, address, TIN | Required for sales to VAT-registered buyers of ₱1,000 or more. Most corporate clients will ask for it regardless, because they need it to prepare your BIR Form 2307. |
| Description of the service | The nature of the service rendered, with quantity and unit cost where those make sense. "Professional services" alone is thin; name the engagement. |
| Amounts and VAT breakdown | VAT sellers show the total the buyer is obliged to pay inclusive of VAT, with the 12% shown as a separate line. Non-VAT sellers show a single amount and no VAT line. |
| Credit term / due date | Not a BIR field, but a written credit term is what lets a VAT seller later claim an output VAT credit on an unpaid receivable — and it is what makes a late client legally late. |
| Payment instructions | Purely so you get paid. GCash number and account name, bank details, and whether you need proof of payment. |
Creditable withholding tax (CWT, also called expanded withholding tax) is not an extra tax. It is your own income tax, collected early, by your client, on the BIR's behalf. You get billed for ₱50,000 and receive ₱47,500 — the ₱2,500 is already sitting with the BIR under your TIN, waiting to be credited when you file.
| Payment | Rate | Condition |
|---|---|---|
| Professional, talent or commission fees to an individual | 5% | Gross income for the current year is ₱3,000,000 or below and you gave the client a sworn declaration (RR 11-2018, Annex "B-1") with a copy of your Form 2303 — by 15 January, or before the first payment. |
| Same, to an individual | 10% | Gross income exceeds ₱3,000,000, or no sworn declaration was filed. The default when the paperwork is missing. |
| Professional fees to a corporation or partnership | 10% | Gross income for the current year is ₱720,000 or below, with the equivalent sworn declaration (Annex "B-3"). |
| Same, to a corporation or partnership | 15% | Above ₱720,000, or no sworn declaration. |
| Income payments to contractors and other service providers | 2% | The catch-all rate for non-professional services — the long list in RR 2-98 as amended: general engineering and building contractors, janitorial, security, messengerial, hauling, and similar. |
| Purchases by a Top Withholding Agent | 1% / 2% | 1% on goods, 2% on services, for transactions of ₱10,000 and above. |
Two things worth internalising. First, withholding is computed on the amount net of VAT — never on the VAT-inclusive total. That is why the tool above applies the rate you pick to the VAT-exclusive subtotal. Second, which rate applies is the withholding agent's call, based on how they classify your service. If a client says 2% and you expected 5%, ask which item of RR 2-98 (as amended by RR 11-2018) they are using, and make sure whatever they withhold shows up on your Form 2307.
Below the line. If your gross sales or receipts stay at ₱3,000,000 or under for any twelve-month period, you can remain non-VAT. You pay the 3% percentage tax quarterly on BIR Form 2551Q, or you elect the 8% flat income tax, which replaces both the percentage tax and the graduated income tax. (The percentage tax was temporarily cut to 1% from 1 July 2020 to 30 June 2023 under CREATE; it went back to 3% after that, so older blog posts still quoting 1% are out of date.)
Crossing it. Once gross sales exceed ₱3,000,000 — or you reasonably expect them to within the next twelve months — VAT registration becomes mandatory. From then on you charge 12% output VAT, you may credit the input VAT on your own purchases, and you file quarterly VAT returns on Form 2550Q. The 8% option is gone. Your registered invoices have to be replaced with VAT invoices; the non-VAT ones cannot simply be re-used.
What it feels like. Corporate clients barely notice the 12% — they claim it back as input VAT. Consumers and non-VAT clients feel every peso of it, so your effective price to them rises unless you absorb it. Against that, input VAT on software, equipment, rent and subcontractors becomes recoverable, which for an expense-heavy business is not nothing.
Two cautions. EOPT restored a mechanism to adjust the ₱3,000,000 threshold every three years using the Philippine Statistics Authority's consumer price index, so the number can move — confirm the current figure before you plan a year around it. And splitting one business across two registrations to stay under the threshold is a long-standing audit trigger, not a strategy.
Chasing money is the least glamorous part of freelancing, and most of the leverage is created before the invoice is even sent.
Put the terms on the document. An issue date and a due date turn "he's being slow" into "he is in delay". A written credit term also has a specific tax consequence: under RR 3-2024, a VAT-registered seller may deduct the output VAT on an uncollected receivable in the quarter after the agreed payment period lapses — but only if the sale was on credit, the credit term was in writing (on the invoice or another document), the sale happened after the regulation took effect on 27 April 2024, the VAT was already paid, and the VAT component was not also claimed as a bad-debt deduction. If the client eventually pays, you add that output VAT back in the quarter of recovery. In other words: the due date field above is doing more work than it looks like.
Escalate in order. A statement of account, then a reminder quoting the invoice number and due date, then a formal demand letter. That last one matters legally: under the Civil Code, delay generally runs from judicial or extrajudicial demand, so the dated demand letter is what starts the clock. Send it in a way you can prove was received.
Interest. If your contract or invoice states a late-payment rate, that governs. If it says nothing, the legal interest is 6% per annum, computed from demand — the rate settled in Nacar v. Gallery Frames (G.R. No. 189871, 2013) following BSP Circular No. 799.
Small claims. Since April 2022, the first-level courts hear small claims of up to ₱1,000,000, with no lawyer required and standard Supreme Court forms. Bring the contract or written engagement, the invoices, the demand letter, and proof of delivery of both the work and the demand.
And prevention. A deposit for new clients, milestone billing on long projects, and a due date on every single invoice will save you more than any collection tactic.
Form 2307 — the Certificate of Creditable Tax Withheld at Source — is your proof that a client withheld tax against your TIN and remitted it. Without it, you have paid tax you cannot claim.
Related free tools. Trying to decide whether the 8% flat rate or graduated rates cost you less? The 8% vs graduated tax calculator compares both on your own numbers and lists the 2026 filing deadlines. Paying people rather than billing them? The payslip generator computes the SSS, PhilHealth, Pag-IBIG and withholding-tax deductions for you. And if the work is events, the invite builder is free too.
Disclaimer: this page and the generator are a drafting and computation aid, not legal, tax or accounting advice, and nothing printed from this page is a BIR-registered invoice. Rates, thresholds and forms change — RA 11976 alone rewrote a decade of invoicing habits, and the VAT threshold is now subject to periodic adjustment. Verify everything against the latest BIR revenue regulations and memorandum circulars and against your own Certificate of Registration (Form 2303), or ask your accountant or your RDO, before you rely on it.
Yes — completely free, no sign-up, no watermark. The whole tool runs in your browser, and you can print or save as PDF as many times as you like.
A VAT-registered taxpayer must show a 12% VAT breakdown: VATable sales, plus the 12% VAT amount, then the total. A non-VAT taxpayer bills with no VAT line, and the document carries a "Non-VAT taxpayer" note — non-VAT taxpayers instead generally pay the 3% percentage tax (or elect the 8% flat option). VAT registration is generally required once gross sales exceed ₱3,000,000 in a 12-month period.
No. This produces a billing document — a service invoice / billing statement. It is not a BIR-registered official receipt/invoice. If your registration requires it, issue your BIR-registered receipt (from an accredited printer under an Authority to Print, or a registered CAS/POS) upon payment.
Not as your principal document. Under the Ease of Paying Taxes Act (RA 11976) and BIR Revenue Regulations No. 7-2024, the invoice became the principal document for sales of services as well as goods, and the official receipt was reclassified as a supplementary document — it acknowledges payment but is not proof of the sale and cannot support a buyer's input VAT claim. Issuing only an OR for a service sale is treated as failure to issue an invoice. Unused ORs could be converted to invoices or used as supplementary documents until consumed, stamped "not valid for claim of input tax".
It depends on how your service is classified, and the withholding agent decides. Professional, talent and commission fees paid to an individual are withheld at 5% if your gross income for the year is ₱3,000,000 or below and you filed a sworn declaration (RR 11-2018 Annex "B-1") with a copy of your Form 2303 — otherwise 10%. The 2% rate is the catch-all for contractors and other non-professional service providers under RR 2-98 as amended, and it is also the rate a designated Top Withholding Agent applies to service purchases of ₱10,000 or more. Withholding is always computed on the amount net of VAT. Ask the client's accountant which item they are using, and make sure it appears on your BIR Form 2307.
VAT registration becomes mandatory once your gross sales or receipts exceed ₱3,000,000 in a twelve-month period, or once you reasonably expect them to. You then charge 12% output VAT with the VAT shown as a separate line on the invoice, may credit input VAT on your own purchases, file quarterly VAT returns on Form 2550Q, and replace your non-VAT invoices with registered VAT invoices. The 8% flat income tax option is no longer available to you. Note that the Ease of Paying Taxes Act restored a mechanism to adjust the ₱3,000,000 threshold every three years using the consumer price index, so confirm the current figure before planning around it.
Send a statement of account, then a reminder quoting the invoice number and due date, then a formal written demand — delay generally runs from judicial or extrajudicial demand, so the dated demand letter starts the clock. If no interest rate was agreed, legal interest is 6% per annum from demand (Nacar v. Gallery Frames, G.R. No. 189871). Since April 2022 the first-level courts hear small claims up to ₱1,000,000 with no lawyer required. If you are VAT-registered, note that RR 3-2024 lets you deduct the output VAT on an uncollected receivable in the quarter after the agreed credit term lapses, provided that term was in writing — one more reason to put a due date on every invoice.
Only in your own browser. Nothing is uploaded — the page has no backend for invoice data. Your last invoice is kept in localStorage so it's still there when you come back; clearing your browser data removes it completely.
Answers here are general information, not legal or tax advice. BIR rules change; confirm against current issuances or your accountant before acting on anything.
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