The Bureau of Internal Revenue (BIR) in the Philippines has restarted its pilot program for B2B e-invoicing as of March 2025, paving the way for a potential full launch in 2026.
This initiative follows the original pilot, which began on July 1, 2022, mandating VAT e-invoicing for approximately 100 large taxpayers, in accordance with the Tax Reform for Acceleration and Inclusion (TRAIN) Act. However, technical challenges caused the program to be suspended at the start of 2024.
On February 27, the BIR announced plans to expand participation to more businesses, with a schedule to be disclosed at a later date.
E-Invoicing and Near Real-Time Reporting
The Philippines' e-invoicing system consists of two main components:
1. Structured E-Invoices:
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In-scope businesses must issue structured e-invoices to their customers.
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Invoices are generated with a digital signature and transmitted to the authorities in JSON format without a pre-clearance requirement.
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Taxpayers may utilize the EIS invoice accreditation and invoice transmission system.
2. Electronic Sales Reporting:
According to the BIR, the EIS will enable taxpayers to issue electronic invoices and receipts both individually and in bulk. Additionally, they will have the capability to issue correction documents for previously issued e-invoices, such as debit and credit memos, as well as other adjustment documents. Taxpayers will also be able to download files to review the details of their e-invoices and e-receipts.
Mandatory Use of E-Invoicing
The following categories of transactions will be required to utilize e-invoicing:
- E-commerce transactions
- Large taxpayers
- Exporters
EIS Document Coverage
The system encompasses the following documents:
- Sales invoices
- Cash till receipts
- Credit and debit notes
- Other similar accounting documents issued online
Benefits of E-Invoicing
Implementing e-invoicing will provide businesses with several advantages:
- Simplified Tax Reporting: Streamlining the reporting process for taxpayers.
- Cost Reduction: Minimizing the expenses associated with manual and paper-based invoice processes.
- Increased Productivity: Enhancing efficiency in invoice issuance and management.
This initiative aims to modernize tax compliance in the Philippines, making processes more efficient and reducing the administrative burden on businesses.
