The Philippines Joint Foreign Chambers (JFC) has backed the proposal now forming part of the Comprehensive Tax Reform Package requiring the use of e-invoices and e-receipts in commercial transactions between registered companies, their customers and the Bureau of Internal Revenue (BIR).
The JFC is a coalition of the American, Australia-New Zealand, Canadian, European, Japanese and Korean chambers. The group represents over 3,000 member -companies engaged in over $100 billion worth of trade and some $30 billion worth of investments in the Philippines.
“While we do not know how much of the traffic involves moving paper invoices and official receipts between businesses and their clients, we believe that encouraging the maximum use of digital technology is an important policy [tool] to easing traffic congestion. The [Duterte] administration has determined that there is traffic emergency in Manila and Cebu, and requested emergency powers to implement solutions.” the foreign chambers said.
The foreign chamber also asked the House of Representatives to consider the proposal amending Section 113 of the National Internal Revenue Code by adding a new paragraph.
The group proposed the following insertion:
“the use of e-invoice and e-receipt shall become mandatory within five years of enactment of this law, regardless of whether or nor they are part of a computerized accounting system. Taxpayers are no longer required to submit traditional hard copy [paper copy] of their invoice or official receipt with any compliance requirements of the Bureau of Internal Revenue [BIR]. The BIR shall simplify the invoicing and receipting data required of the taxpayer by only requiring name and tax identification number. The BIR may exempt tax-payers from this requirement if they can demonstrate sufficient reasons for noncompliance”
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