BIR Inventory Lists in the Philippines [2026 Update]

Last updated on February 20, 2026

Do you run a business in the Philippines that holds inventory for sale? If so, are you aware of the BIR requirement to submit an updated Inventory List every year?

In short: all Philippine businesses with inventory for commercial sale must submit their updated Inventory List to the BIR by a specific deadline each year.

Our explainer below covers everything you need to know about submitting BIR Inventory Lists, including the 2026 submission deadline for Philippine companies!

What is the Inventory List?

The Inventory List is a compliance requirement for businesses in the Philippines that hold inventory for sale. It is a comprehensive report detailing all inventories held by a company as of the last day of its financial year.

All relevant companies must prepare and submit the Inventory List to the BIR annually. The submission deadline depends on the company’s financial year, whether calendar or fiscal. Most Philippine businesses follow the calendar year, which ends on 31 December. We explain the specific deadlines and requirements in detail below.

It’s important to note that the Inventory List is not the only inventory-related document required by the BIR. Companies must also submit other supporting documents, records, and schedules along with the Inventory List.

Why Should PH Companies Submit an Inventory List?

The main reason for submitting an Inventory List in the Philippines is straightforward. It’s a mandatory compliance requirement under Philippine tax regulations.

Section 13 of Revenue Regulations No. V-1 (also known as the Bookkeeping Regulations) states that taxpayers holding inventories for sale must maintain a book of inventories. The regulations also require that details of these inventories, as of the end of each financial year, be prepared and submitted to the BIR.

Without proper inventory management processes or systems, completing the Inventory List accurately can be challenging. Our previous article outlines several inventory management controls that can help Philippine businesses streamline this process and make annual BIR submissions more efficient.

What Information Must be Included in the Inventory List?

Under RR No. V-1, the Inventory List should include various details relating to the type, value and number of inventories held by a company.

The following information should be provided in relation to all inventories for sale which are held by a company on the last date of the previous financial year:

• A description of the goods or inventories held by the company
• The quantity of the goods or inventories held
• A description of the particular types of inventories held by the business
• The unit in which the inventory is measured or valued by the business
• The total cost of every item of stocks-in-trade, materials, supplies and other goods found on the premises of the company at the close of the financial year

What Can Be Excluded From the Inventory List?

Inventories that are not held for sale do not need to be included in the Inventory List.

So why would a company hold items that aren’t for sale? Often, businesses maintain certain stock to support their internal operations rather than to sell to customers.

These may include:

• Spare parts for machines
• Office supplies for daily operations
• IT equipment for employees or company representatives
• Manufacturing materials
• Other equipment or items necessary for internal business functions

These types of inventories are excluded from the Inventory List because they are not part of the goods offered for sale.

Importance of Knowing What to Include in the Inventory List

Submitting the Inventory List to the BIR with accurate details is an important compliance exercise. Here’s why:

1. Avoid double reporting – Sometimes, the same inventory may appear in multiple Inventory Lists. For example, consigned goods could incorrectly appear in both the consignor’s and consignee’s lists. Coordination between the parties helps prevent discrepancies.
2. Maintain accurate accounting records – Incorrect inventory information can lead to errors in the books, which affect budgets, forecasts, and financial reports.
3. Prevent financial penalties – Submitting inaccurate information to the BIR can result in fines (see the penalties section below).
4. Reduce audit risk – Inaccurate inventory reporting can trigger BIR investigations or audits.

These are just a few of the key reasons why companies must ensure their Inventory Lists are accurate and submitted on time.

Key takeaway: Treat the BIR Inventory List like any other tax or compliance requirement in the Philippines. Make sure it’s filed accurately and on time every year.

But My Business Has No Inventories at the End of the Year

Even if your company does not have any inventories at the end of the financial year, an Inventory List still needs to be filed provided your business normally holds inventories for sale. In this case, the list will simply indicate that no inventories were held at year-end.

Why might a company have no inventories at year-end? There are several possible reasons:

• Operations may have paused for a period (e.g., during the Covid pandemic), so no new stocks were purchased.
• Global supply chain challenges may have delayed shipments, leaving no inventories on hand.
• The financial year-end may have coincided with a natural depletion of stock before new inventory arrived.

The key takeaway: from a compliance perspective, if your business usually holds inventories for sale, you are required to submit an Inventory List every year, even if the company has no inventories at the end of the year.

Deadlines for Submitting the Inventory List

Inventory Lists must be submitted every year. In the Philippines, the deadline is within 30 days after the end of a company’s financial year.

As mentioned earlier, the submission date varies depending on each company’s financial year. Most businesses follow the calendar year (1 January – 31 December), but some choose a different fiscal year.

Why would a company select a fiscal year that differs from the calendar year? There are several reasons:

• A Philippine company may be part of a larger group of companies, either domestic or international, and management may want all group companies to share the same financial year.
• Management may want to align the financial year with the company’s registration date. For example, if a business was registered on 1 June, the financial year might run from 1 June to 31 May.

Here’s an example illustrating how different financial years affect Inventory List deadlines:

Additional Reporting Requirements

In 2015, the BIR issued Revenue Memorandum Circular No. 57-2015 (RMC 57-2015), which provided further guidelines on the submission of the BIR Inventory List and the additional information that must accompany it.

Certain companies are required to submit various records, lists, and schedules in addition to the Inventory List. This includes businesses that maintain inventories of stock-in-trade, raw materials, goods in process, supplies, and other goods, such as:

• Manufacturing, wholesaling, distributing, and retailing companies
• Real estate dealers and developers
• Service companies, e.g., construction companies, building contractors

Under RMC 57-2015, a business with a tangible asset-rich balance sheet, where at least 50% of total assets are working capital assets (e.g., accounts receivable, inventory), must submit, in both hard and soft copy, additional schedules and lists in the prescribed format outlined in the Annexes of the circular:

• Manufacturing, merchandising, or retail companies – inventory of merchandise, raw materials, goods in process, and finished goods (Annex A)
• Real estate companies – inventory of saleable units with corresponding cost per project (Annex B) and/or inventory of saleable units per project with corresponding trade accounts receivable reconciliation (Annex B-1)
• Construction companies – schedule of outstanding receivables (beginning and ending) and realized gross profit per project (Annex C)

Submission of Soft Copies

The soft copies of the Inventory List and additional schedules/reports must be submitted via an accurately labeled DVD-R, along with a Notarized Certification signed by the authorized representative of the taxpayer. This certification confirms that the information contained on the DVD-R is true and accurate.

A template format for this Certification can be found in Annex D of RMC 57-2015.

Penalties

Filing the BIR Inventory List is a key compliance requirement under the Philippine tax framework.

If a company fails to submit the Inventory List by the deadline, or files it using an incorrect format or without the required accompanying documents and records (i.e., not in the format prescribed by the BIR), it will be in breach of its filing obligations and subject to penalties for non-compliance.

Section 3 of RMC No. 57-2015 outlines the specific penalties for violations related to the submission of both the Inventory List and the additional required reports, records, and schedules.

How to Get Your Filing Right with Expert Guidance

CloudCFO offers tax compliance services specifically for startups and SMEs in the Philippines! We help our clients get their BIR Inventory Lists filed on time, every time.

With our structured processes and controls, we ensure that our clients are not only aware of upcoming filing deadlines but also have ample time to prepare.

Contact CloudCFO today and let’s discuss how we can support your filing and compliance requirements moving forward!