E-Invoicing in Philippines [2023 Requirements]

The Philippines joined the digital e-invoicing revolution

E-invoicing in the Philippines has undergone several changes in the last few years regarding its e-invoicing guidelines. In 2018, the Philippines launched Tax Reform for Acceleration and Social Inclusion (TRAIN). According to it, large taxpayers and exporters are required to start issuing e-invoices and receipts and reporting sales data to the Tax Office (BIR) at the point of sale within five years of the introduction of the TRAIN Act.

As announced by the Internal Revenue (BIR), from 2024, it is planned to extend the mandatory electronic invoicing to all major taxpayers in the Philippines. This is another step in the implementation of the e-invoicing system (EIS), as it is the basis for mandatory electronic invoicing by the 100 largest taxpayers for whom mandatory e-invoicing for government invoices (B2G) was introduced from July 2022.

Starting January 1st, 2024, the Philippines will require issuing an electronic invoice to the recipient and reporting this invoice data to the tax authority (JSON format) through EIS (Electronic Invoicing System) via the web service or an API.

The aim of the Bureau of Internal Revenue (BIR)

The Bureau of Internal Revenue (BIR), the governing body in the Philippines responsible for collecting over half of the total government revenue, is steadily moving toward a more involved model that resembles a system used in South Korea.

Tax Office (BIR) is responsible not only for the implementation of the project in accordance with the Tax Ordinance. The aim of its activities is, in addition to reducing VAT fraud, also to bring business benefits to enterprises, such as optimizing settlement processes with the tax authority. The entire enterprise follows the after-world trend of digitizing tax systems.

E-invoicing process description

The Philippines requires issuing an electronic invoice to the recipient and reporting this invoice data to the tax authority (JSON format) through EIS (Electronic Invoicing System). EIS supports the transmission of official receipts, sales invoices, credit and debit notes, as well as further similar accounting documents. It is a web-based system that can be accessed through its URL.In total, the system consists of three portals:

EIS Taxpayer Portal

EIS Certification Portal

EIS Portal for Revenue Officers

Invoicing reports are sent to the government's central platform, the Continuous Transaction Control (CTC) invoice reporting and monitoring system,

Do you want to know more?

If your company is based or has branches in the Philippines and you need to prepare your billing and tax systems to comply with the new requirements. Click on the button below to get in touch with one of our experts.