Blog · Philippines
How to Invoice Clients as a Filipino Freelancer
BIR official receipts, professional invoice templates, billing foreign clients in USD — everything you need to get paid properly.
One of the first things new Filipino freelancers struggle with is invoicing — not just how to create a professional invoice, but whether BIR official receipts are required, how to handle foreign currency, and what happens if you don't comply.
Do You Need BIR Official Receipts?
Yes, legally. Once you're registered with the BIR, you're required to issue official receipts (OR) or sales invoices for every transaction. However, in practice:
- For foreign clients: Most foreign clients don't care about Philippine ORs. They need a professional invoice for their own accounting. Your regular invoice is sufficient.
- For Philippine clients: You must issue BIR official receipts. Filipino companies need ORs for their own tax deductions.
The BIR requires you to print official receipts from a BIR-accredited printer. The cost is typically ₱500–₱2,000 for a booklet of 100 receipts.
What to Include in Your Invoice
A professional freelancer invoice should include:
- Your name and business address
- Client's name and address
- Invoice number (sequential: 001, 002, 003...)
- Invoice date and due date
- Description of services provided
- Amount (specify currency — PHP or USD)
- Payment method (PayPal, Wise, bank transfer)
- Your TIN (optional for foreign clients, required for PH clients)
Billing in USD vs PHP
Most Filipino freelancers billing foreign clients charge in USD. Here's why:
- Higher effective rate: USD to PHP conversion gives you favorable rates
- Client expectation: Most US/EU clients expect to pay in their currency
- Currency stability: PHP has historically depreciated against USD (~2-3% per year)
However, keep in mind that exchange rate fluctuations can affect your actual PHP income. Consider using Wise for better conversion rates and locking in favorable rates.
Payment Terms Best Practices
- Net 15 or Net 30: Standard payment terms — specify clearly on your invoice
- 50% upfront for new clients: Protects you from non-payment
- Late payment fees: Add a 2% monthly late fee clause (optional but recommended)
- Follow up: Send a polite reminder 3 days before the due date
Free Invoice Tools for Filipino Freelancers
| Tool | Best For | Cost |
|---|---|---|
| Wave Apps | Free invoicing with payment tracking | Free |
| Upwork/Fiverr | Platform-generated invoices (built-in) | Platform fees |
| Google Docs template | Simple, manual invoicing | Free |
| InvoiceNinja | Professional invoicing with auto-reminders | Free plan available |
| QuickBooks Online | Full accounting + invoicing | ₱1,000+/month |
Keeping Records for BIR Compliance
The BIR requires you to keep records of all income and expenses for at least 10 years. This includes:
- Official receipts (for Philippine clients)
- Invoices issued (for all clients)
- Bank statements showing received payments
- Payment platform statements (PayPal, Wise, Upwork)
Store digital copies — the BIR accepts electronic records as long as they're complete and accessible.
Need to create professional invoices? Try our free invoice generator — no signup required. Then calculate your tax with our Philippines tax calculator.