E-invoicing System EIS partial launched 1 July 2022 for 100 businesses; full rollout 2023
The Philippines Bureau of Internal Revenue (BIR) has launched 1 July 2022 mandatory 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.
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:
- 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.
Asia Pacific e-invoicing
Country | Date | Comments (click for details) |
Australia | Jul 2023 | PEPPOL-based e-invoicing with no govt intervention B2B |
China | Jan 2023 | Special e-fapiao VAT invoice being piloted with 2023 full implementation |
India | Oct 2020 | B2B pre-clearance with separate B2C; completed Apr 2021 |
Indonesia | Jul 2015 | e-Factur Pajak electronic invoicing |
Japan | Oct 2023 | Tax qualified invoices |
Kazakhstan | Jan 2017 | e-invoicing IS ESF |
Kyrgyzstan | Jan 2023 | Mandatory e-invoicing for goods |
Malaysia | 2024 | e-invoicing pre-clearance |
Mauritius | 2023 | e-invoicing System with digital transaction reporting |
New Zealand | Mar 2022 | B2G PEPPOL-based e-invoicing |
Philippines | Jul 2022 | 2022 pilot of e-invoices; to follow South Korea model |
Singapore | TBC | Mandatory B2G e-invoicing on InvoiceNow |
South Korea | 2011 | Near real-time invoice reporting |
Taiwan | 2017 | Electronic GUI invoices; non-residents since 2020 |
Thailand | 2018 | E-invoice reporting where adopted |
Vietnam | Nov 2021 | Pre-clearance B2B verification code e-invoice |