CREATE MORE pays for most of your e-invoicing setup
Small taxpayers deduct their e-invoicing setup cost twice under RA 12066 — a 100% additional deduction on top of the ordinary one. What qualifies, and what it does to the real cost.
Last checked against the regulations on 2026-08-31.
The provision
The CREATE MORE Act (RA 12066) gives taxpayers who comply with the e-invoicing mandate an additional deduction on their setup cost — on top of the ordinary business-expense deduction under §34(A)(1) of the Tax Code. The additional deduction is 100% for Micro and Small taxpayers and 50% for Medium and Large.
For a Small taxpayer that means the cost is effectively deducted twice: spend ₱10,000 getting compliant and ₱20,000 comes off taxable income.
What it does to the real cost
Worked example at a ₱990/month subscription: ₱11,880 for the year, deducted at 200% is ₱23,760 off taxable income. At the 20% corporate income tax rate that saves ₱4,752 in tax — an effective cost of ₱7,128 for the year, roughly ₱594 a month. The calculator on our home page runs the same arithmetic on your own numbers.
Two caveats that matter: the additional deduction attaches to complying — a subscription for software you never issue from is just an expense — and your classification under RR 8-2024 (Micro, Small, Medium, Large by annual gross sales) decides which rate applies. Confirm both with your CPA before you book it.
Which classification are you?
RR 8-2024 draws the lines at annual gross sales: Micro below ₱3M (exempt from the mandate entirely), Small from ₱3M to under ₱20M, Medium from ₱20M to under ₱1B, and Large above that. Most VAT-registered online sellers land in Small — the band with the full 100% additional deduction.
Get compliant before December
Talaan turns marketplace orders into BIR-compliant invoices and keeps the books behind them. Free while you are under ₱3M in sales.
This guide summarises Philippine tax regulations for practical purposes and is not tax or legal advice. Regulations in this area have changed every year since 2023 — have a Philippine CPA validate anything you rely on.