[Ask The Tax Whiz] How will e-Invoicing be implemented in the Philippines?

The Philippine Tax Whiz discusses the implementation and scope of e-Invoicing.

What is the Electronic Invoicing/Receipting System?

As mandated by the BIR, Electronic Invoicing/Receipting System (EIS) is capable of storing and processing the data required to be transmitted by covered taxpayers using their Sales Data Transmission System.

Revenue Regulations No. 8-2022 is promulgated to provide policies and guidelines for the implementation of Section 237 and 237-A of the NIRC, as amended by TRAIN Law and to prescribe requirements on the issuance of electronic receipts/invoices (e-receipts/e-invoices) in lieu of  the manual receipts or sales/commercial invoices. 

Who are the taxpayers covered in using the EIS?

The following taxpayers are mandated to issue electronic receipts or sales/commercial invoices:

  1. Taxpayers engaged in the export of goods and services;
  2. Taxpayers engaged in electronic commerce (e-commerce); and
  3. Taxpayers under the Large Taxpayers Service (LTS). 

The above mentioned taxpayers, except for the taxpayers engaged in e-commerce, are required to electronically report or transmit their sales data to the Bureau through the use of their Sales Data Transmission System.

What are the requirements that these taxpayers must comply with?

In compliance with the TRAIN Law, the taxpayers mentioned above must comply with the following:

  1. Issuance of e-Receipts/e-lnvoices to their customers/buyers, in lieu of manual receipts/invoices;
  2. Registration of their Computerized Accounting System (CAS) generating e-receipts/ e-invoices and/or Cash Register Machines (CRM)/Point-of-Sales Systems and Certification of Sales Data Transmission System; and
  3. Transmission of the sales data covered by the e-receipts/e-invoices using their Sales Data Transmission System into the EIS of the Bureau.

Taxpayers using EIS shall not be required to submit Summary List of Sales (SLS), however, Summary List of Purchases and Importations shall still be required to be submitted.

With the EIS, BIR examiners will no longer be limited to relying only on printed invoices and receipts to examine a taxpayer’s compliance. The implementation of the EIS would also increase the likelihood for higher compliance, given that e-Invoicing would be a more efficient way for both taxpayers and the BIR to track down all their transactions. – Rappler.com

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Originally published via Rappler.

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