Lawyer Rule Oporto, senior director for business tax services at SGV & Co., said that after launching the pilot EIS implementation among 100 large taxpayers in July 2022, the agency is now poised to roll out the project to all other covered taxpayers.
The BIR has identified an additional 100 taxpayers for this year’s rollout, which will cover not just the large taxpayers but also those engaged in the export of goods and services and those engaged in e-commerce.
Moreover, the agency has identified an additional 500 taxpayers for inclusion in the pilot by the fourth quarter, said Oporto in a recent webinar conducted by the American Chamber of Commerce of the Philippines.
The EIS is an electronic platform developed by the BIR with the capability to receive, process and store data from taxpayers.
BIR issued last year the Revenue Regulations (RR) 8-2022 on policies and guidelines for the use of EIS and RR 9-2022 on the admissibility of sales documents in electronic format.
She said the agency will be issuing revenue memorandum circulars (RMCs) to clarify RR 8-2022 and provide guidelines to covered taxpayers on EIS implementation.
RR 8-2022 states that taxpayers mandated to comply with e-invoicing are the following: those engaged in the export of goods and services, those engaged in e-commerce, and large taxpayers.
Taxpayers not mandated to issue e-receipts/e-invoices and/or transmit sales data to the EIS may continue to use manual receipts/invoices or issue computerized accounting system (CAS) or point-of-sales (POS)-generated receipts/invoices based on existing revenue issuances, said Oporto.
However, taxpayers who opt to issue e-receipts or e-invoices and transmit sales data to the EIS may comply with the provisions of these regulations, she continued.
Opporto clarified that what should be transmitted to the EIS are the sales data and not the source documents.
According to the guidelines issued to the pilot taxpayers, sales data required for transmittal include document number, issuance date, unique ID number, seller information, buyer information, details of items/nature of service sold, sales amount, value added tax, discounts, correction code/reasons, withholding tax and other taxable/non-taxable revenue, she said.
Source documents of the sales data include sales invoices, official receipts, service billings, debit memo/debit note, credit memo/credit note and other adjustment documents.
BIR also prescribes that sales reporting must start the day after the PTT is issued, and that transmission must be done in real time or near real time, which is within three calendar days from the transaction date.
Taxpayers face penalties for late or no transmission of sales data. For each day of violation, the penalty is one-tenth of one percent of the annual net income for the second year preceding or P10,000, whichever is higher. If the days of violation exceed 180 days, the penalty is a permanent closure. / PHILEXPORT