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Philippines: E-Invoicing and CTC e-Reporting Changes

  • The CREATE MORE Act removed the five-year deadline for the government to implement e-invoicing and CTC e-reporting.
  • The Act introduced tax deduction benefits for taxpayers who adopt e-invoicing and e-reporting.
  • The BIR published a draft Revenue Regulation proposing amendments to the Tax Code’s e-invoicing and CTC e-reporting provisions.
  • The Draft proposes revised e-invoicing and Electronic Sales Reporting System definitions.
  • The Draft expands the scope of taxpayers to include those using CAS, CBA, invoicing software, registered business enterprises benefiting from tax incentives, taxpayers using POS systems, and other taxpayers as required by the BIR Commissioner.
  • Taxpayers who issue and report invoices electronically may qualify for income tax deductions.
  • Micro taxpayers under the mandatory scope are exempt from the CTC e-reporting obligation but may choose to comply voluntarily.
  • Penalties for non-compliance with e-invoicing and CTC e-reporting obligations will result in penalties under Section 264-A of the Tax Code.
  • The draft does not set a timeline for expanding CTC e-reporting beyond the 2022 pilot program.
  • Businesses within the expanded scope must comply once a BIR-ready system is available.
  • The proposal is still in draft form and open for public comments.

Source: sovos.com

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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