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.
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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:
- Large tax payers
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?
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|
|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|
|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|