EIS-ready per-guard billing for Philippine security agencies
A security agency's client invoice is not a flat fee — it is per guard, per post, at a PADPAO-compliant rate, with a mandatory administrative fee and specific tax treatment. Under the BIR e-invoicing mandate (deadline December 31, 2026), that invoice must become structured, BIR-reportable data. Here is how it works — and how to issue it from the same DTR that pays your guards.
Key Takeaways
- Security agencies are covered because they issue client invoices from a computerized system — the CAS/software group in RR 11-2025. Only a micro agency (under ₱3M) is exempt.
- Each invoice is per guard, per post, at the PADPAO-compliant contract rate, plus the 20% admin-fee floor (RA 11917), with 12% VAT and 2% EWT.
- The strongest setup issues the invoice from the same DTR that runs guard payroll and gates deployment on current SOSIA / LESP credentials.
- A paper or static PDF invoice does not qualify — the agency needs structured invoice data from a BIR-registered system.
Does BIR e-invoicing apply to a security agency?
Yes, in almost all cases. RR 11-2025 covers taxpayers using a Computerized Accounting System or invoicing software, and a security agency issues client invoices from such a system. The ₱3M micro-taxpayer line is an exemption, not the coverage test — an active guard agency invoices far above it and issues from a system, so it is covered.
See the EIS compliance guide for the full coverage groups and the micro-taxpayer exemption for the edge cases.
How do you build a per-guard EIS invoice?
Aggregate each guard's billable time at a client from the DTR, apply the PADPAO-compliant contract rate to get the manpower cost, add the administrative fee (at least 20% of the contract cost under RA 11917), then compute 12% VAT on the service and the 2% expanded withholding tax the client withholds. Issue it as a structured, system-numbered invoice.
| Line | Basis | Note |
|---|---|---|
| Manpower cost | Guards deployed × PADPAO-compliant rate | Derived from the applicable regional wage order (PADPAO-aligned) |
| Administrative fee | ≥ 20% of total contract cost | RA 11917 §9 minimum, subject to DOLE adjustment |
| VAT | 12% on the VAT-able service | Standard VAT rate |
| Expanded withholding tax | 2% withheld by the client | On the service amount, before VAT |
Why reconcile billing to DTR and SOSIA compliance?
Because the hours that bill a client should be the hours that paid the guard, and the guard on that post should hold a current license. When billing, payroll, and credential gating read one record, a reliever swap or a lapsed LESP is reflected everywhere at once — not discovered during an audit or a client dispute.
NexusWorkforce runs duty rosters, offline DTR, guard payroll, SOSIA/LESP credential gating, and EIS-ready billing on one spine. Compare it for agencies specifically on best EIS software for a manpower agency, and see the shared mechanics on EIS-ready agency-to-principal billing.
Frequently asked questions
Yes, in nearly all cases. Under RR 11-2025 the mandate covers users of a Computerized Accounting System or invoicing software. A security agency issuing client invoices from a computerized system is covered. Only a micro agency — under ₱3M in annual gross sales — is exempt, which is rare for an active guard force.
The agency issues one structured service invoice per client per period, built from the guards deployed to that post. It reflects the PADPAO-compliant contract rate, adds the administrative fee (at least 20% under RA 11917), and computes 12% VAT and the 2% expanded withholding tax the client withholds.
The PADPAO wage-order rate sets the minimum monthly contract rate per guard, which drives the manpower portion of the service invoice. The EIS invoice must reflect that rate plus the mandatory administrative fee, then apply VAT and EWT — all computed, not typed.
It should. The strongest setup builds the invoice from the same DTR that pays the guard and gates deployment on current SOSIA/LESP credentials — so the hours billed, the hours paid, and the guard's licensed status all point at one record.
No. Under RR 11-2025 a paper or static PDF invoice that cannot be electronically reported is a traditional manual invoice, not an electronic one. The agency needs structured invoice data from a registered system; a PDF can accompany it as a readable copy.
Bill guards EIS-ready, straight from the DTR.
NexusWorkforce issues per-guard structured invoices at PADPAO rates — VAT, EWT, and the RA 11917 admin fee built in, registrable as a CAS — from the same system that runs guard payroll and gates SOSIA/LESP credentials.
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