Philippines: A step towards the mandatory electronic invoice
The Philippines advances the implementation of its new e-Invoicing system (EIS). The Bureau of Internal Revenue (BIR) has announced that it will go live as of July 2022, making it mandatory to electronically invoice for the 100 largest taxpayers in the country.
The BIR intends to reduce VAT tax fraud and facilitate tax compliance processes for taxpayers and the tax authority.
The new EIS system is part of the Comprehensive Tax Reform Program (CTRP) introduced by the ministry of finance, which is looking to digitalize the tax and administrative systems in the Philippines.
The pilot Project is currently being implemented and EDICOM is participating with many of its clients.
How does the new electronic invoicing system work in the Phillipines?
The EIS in the Philippines is made up of an invoice report sent to the government’s central platform after invoices have been sent to final clients. Therefore, it is an invoice reporting system called the “Continuous Transaction Control” similar to that of South Korea. In fact the Korean International Cooperation Agency (KOICA) has helped the Philippines to develop its electronic invoice reporting system.
The electronic invoice includes sales invoices, receipts, debit and credit notes and other similar accounting documents issued through the internet.
If your company has an establishment in the Philippines it must begin to prepare its billing and tax systems to comply with the new obligations. Contact one of our consultants for more information.