E-invoicing System EIS Jan 2024 launch now on hold
The Philippines Bureau of Internal Revenue (BIR) launched 1 July 2022 mandatory VAT e-invoicing for around 100 large taxpayers based on the Tax Reform for Acceleration and Inclusion Act (TRAIN) Act. The plans for a large-scale launch though are behind schedule due to performance issues with the BIR’s platform, ACE. BIR has switched IT provider as a result, but is still having to manually onboard taxpayers 100 at-a-time. The project is effectively on hold now until 2025.
The Philippines system is based on a live listing of transactions being transmitted to the authorities; not a pre-clearance e-invoicing model. Invoices are created with a digital signature and transmitted to the authorities in JSON format. There is no requirement for a pre-clearance.
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Electronic Invoicing System
The BIR has adopted a live transmission model such as South Korea’s e-Tax invoice. This is known as Electronic Invoicing System (EIS). This is a form of Continuous Transaction Control (CTC), with a centralised platform for invoice clearance. In South Korea, the electronic tax invoice system is mandated for all corporate and certain individual taxpayers. To issue and transmit invoices, a taxpayer may use an Application System Provider set up at the taxpayer’s expense.
The Philippines version will be divided into two parts:
- EIS invoice accreditation and invoice transmission system
- BIR back-end for tax authorities
According to BIR, by using EIS, the taxpayers will be able to issue, in single or in bulk, their electronic invoices/receipts. They will also be able to issue correction documents to a previously issued e-invoice, such as debit memo, credit memo and other adjustment documents. Taxpayers will also be able to download the files to check the details of e-invoices and e-receipts.
The following categories of transactions are mandated to use e-invoice:
- e-commerce
- Large tax payers
- Exporters
EIS documents:
The system covers the following documents:
- Sales invoices
- Cash till receipts
- Credit and debit notes
- other similar accounting documents issued through the internet
E-invoicing will also directly support businesses:
- Simplify tax reporting
- Reduce expensive manual and paper-based invoice processes
- increase productivity on invoice issuance and its management
VAT determination for your e-invoicing?
VAT Calc’s in real-time global Calculator and Auditor services produce instant and accurate tax calculations for e-invoices such as the Philippines or general ERP and VAT filing purposes.
