ASEAN KEY DESTINATIONS
PHL eyes $7.3-M grant from Korean agency for e-invoice system
The Philippines is eyeing a $7.3-million grant from the Korea International Cooperation Agency (KOICA) to finance the proposed Electronic Receipt, Invoice, and Sales Reporting System.
In an emailed statement on Sunday, the Department of Finance (DOF) said that the Bureau of Internal Revenue (BIR) is now in the process of preparing a feasibility study in cooperation with the Korean government's development cooperation agency.
This will cover the possible implementation of the e-Invoice system mandated under the Tax Reform for Acceleration and Inclusion (TRAIN).
Signed into law in December 2017 by President Rodrigo Duterte, the TRAIN Act expanded the value-added tax (VAT) base and reduced personal income taxes (PIT) in efforts to raise more revenues starting January 2018.
Under Section 237 of Republic Act 10963 or the law, large taxpayers and exporters are required to electronically issue their invoices/receipts, as well as report their sales data to the BIR at the point of sale. within the next five years.
According to BIR Deputy Commissioner Arnel Guballa, a KOICA team visited the agency and the DOF in 2018, to gather data in preparation of the feasibility study on the proposed e-Invoice system.
Guballa said the BIR has already identified the list of 100 pilot taxpayers that will take part in the project.
"The review of the final report and the terms of reference of the Asian Development Bank (ADB)-funded consultants are now ongoing for the e-invoicing project," he was quoted as saying.
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