Philippines: Updated invoicing requirements
Bureau of Internal Revenue (BIR) issued regulations to implement invoicing requirements
July 24, 2024
The “Ease of Paying Taxes Act” mandates that all service-oriented taxpayers, both individuals and non-individuals, must now use “invoices” instead of “official receipts” (ORs) as the primary document for sales of goods and services.
The Bureau of Internal Revenue (BIR) issued Revenue Regulations No. 7-2024 to implement the invoicing requirements, effective from April 27, 2024:
- ORs are no longer valid as evidence of sales and must be converted to invoices.
- Taxpayers can either use remaining ORs as supplementary documents or convert them to invoices.
- Taxpayers must submit an inventory of unused ORs by July 31, 2024.
- Changes from “official receipt” to “invoice” for cash register machines (CRM), point-of-sales (POS) machines, and e-receipting/e-invoicing software are considered minor and do not require BIR approval.
- Taxpayers with computerized accounting systems (CAS) or computerized books of accounts (CBA) with accounting records (AR) that generate ORs need to update their system registration because the needed reconfiguration is considered a major system enhancement. A new acknowledgement certificate or permit to use (PTU) is required by December 31, 2024, with possible extensions to June 30, 2025.
- ORs issued by CRM, POS, E-receipting, E-invoicing, CAS, or CBA with AR will be valid for claiming input tax until December 31, 2024, or until system enhancements are completed.
Read a July 2024 report prepared by the KPMG member firm in the Philippines