Philippines EIS VAT e-invoicing 2024

E-invoicing System EIS full rollout January 2024

The Philippines Bureau of Internal Revenue (BIR) has 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 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.

BIR intends to roll out the requirement to all taxpayers from 1 January 2024.

You can follow VAT Calc’s global live VAT invoice transaction and e-invoice blog with country-by-country real-time reporting plans. Subscribe to our frequent global VAT and GST news letter for other updates.

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:

1. EIS invoice accreditation and invoice transmission system
2. 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.

Asia Pacific e-invoicing