The Bureau of Internal Revenue (BIR) launched a new web-based system, called the Electronic Invoicing/Receipting System (EIS), as part of the BIR’s Digital Transformation Program and in compliance with the provision of the Tax Reform for Acceleration and Inclusion (TRAIN) Act. Goal of the new system is to digitize the tax audit process and to facilitate the implementation of e-Invoices and e-receipts. In July 2022, the Philippines began a pilot phase with 100 chosen taxpayers that are required to generate and report such as e-Invoices and e-receipts to the Electronic Invoicing/Receipting System (EIS).
We have gathered the top-five critical questions from our clients.
- Which invoice types are included in the new e-Invoice regulation?
The new electronic invoice regulation is included in the Tax Reform for Acceleration and Inclusion (TRAIN) Act. The regulation covers both business-to-business (B2B invoice) and business-to-consumers (B2C receipt) transactions, as well as credit and debit notes.
- What is the format and will invoices need a digital signature?
Electronic documents must be issued in JSON format and a digital signature is required. There are two different ways of submitting electronic documents to the EIS taxpayer portal: manually or using a shared API.
- What is the date that e-Invoicing will become mandatory?
The Philippines e-Invoice pilot phase began in July 2022 for 100 large taxpayers that registered for the bureau’s large taxpayer service (LTS) and export goods and services. Issued electronic documents are submitted through the EIS platform in JSON format. After the issuance date, taxpayers have three days to submit close to real-time reporting.
- What type of taxpayers are responsible?
When the mandate begins, it will apply to the following taxpayers, according to Bureau of Internal Revenue (BIR):
- Taxpayers who participate in internet commerce (e-commerce)
- Export goods and services
- Large Taxpayers Service (LTS)
VAT payers who are exempt from the mandate may continue using manual receipts and invoices, or may prefer to furnish those records electronically.
- Will there be an archiving period for the invoices?
Yes, e-Invoices should be archived for a period of 10 years.
For more information about the process and our solutions, please contact us at firstname.lastname@example.org.