Philippines prepares for Mandatory Electronic Invoices
Tuesday 13th September, 2022
The Philippines has advanced the implementation of its new e-Invoicing system (EIS). The Bureau of Internal Revenue (BIR) announced a go live date in July, 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 digitalise the tax and administrative systems in the Philippines.
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.
The electronic invoice includes sales invoices, receipts, debit and credit notes and other similar accounting documents issued through the internet.
Companies that have an establishment in the Philippines must begin to prepare billing and tax systems to comply with the new obligations.
The pilot Project is currently being implemented and EDICOM is participating with many of its clients.