Requiring taxpayers engaged in the export of goods and services, e-commerce, and large taxpayers to issue electronic receipts

The Bureau of Internal Revenue (BIR) issued Revenue Regulation (RR) No. 08-2022 and RR No.09-2022 to address concerns regarding Electronic Invoicing/receipting systems[1] (EIS) by setting policies and guidelines. Taxpayers who are mandated to use EIS are those engaged in the export of goods and services, e-commerce, and classified as large taxpayers.

There will be separate reporting for each sales classification, particularly VATable, zero-rated and exempt. Moreover, the “zero-rated sales” stamp requirement on the face of the receipt is no longer necessary for all taxpayers covered by these regulations.

Taxpayers who are mandated should comply with the following:

1. Issue e-receipts/e-invoice, transmit data electronically, and create a Sales Data Transmission System based on the Standard Application Programming Interface (API) guidelines which should be certified by BIR through EIS;
2. Enrolment of taxpayers prior to the actual transmission of sales data to EIS;
3. Submit an application for the “EIS Certification” or “EIS Cert” subject to online verification if compliant with the BIR requirements and application for issuance of Permit to Transmit (PTT) to allow transmission of sales data, regardless of agreement with the software provider. On the day following the issuance of PTT, sales reporting shall be done immediately;
4. Transmission of sales data shall be:
   • Done real-time or near real-time or within three (3) calendar days from the date of the transaction; and
   • In JavaScript Object Notation (JSON) format.

Failure to transmit sales data to EIS at the time required will result in a penalty. However, taxpayers who voluntarily register to issue e-receipts/e-invoicing should follow the policies set under the regulation, hence required to transmit sales data to EIS as well.

Revenue officers assigned may access the CAS or POS/CRM machines of the taxpayer and refusal of the latter may result in disallowance or assessments. In addition, violation of the provision may result in the prosecution of the taxpayer under RR No. 09-2009 and will be held liable for the penalties provided under Sec. 255 of the NIRC in addition to any other penalties which may also result in the revocation of the Acknowledgement Certificate or Permit to use CAS.

Further, a Summary List of Sales (SLS) is not required to be submitted by the taxpayer who uses EIS but they must still submit a Summary List of Purchases and Importation.

This regulation also reiterated the requirement of issuance of receipts/invoices for the transfer of goods or services rendered at One hundred pesos (100) or more in compliance with BIR invoicing requirements.

Only purchase data that are validated through EIS shall be allowed for purposes of claiming input VAT/ claiming deductible expenses for purposes of Income Tax. However, receipts/invoices shall be subjected to further investigation in case it is not reported in the EIS by the supplier and shall be considered as unreported sales.

Original form or digital copies, whichever is applicable, must still need to be kept in case it was demanded subject to verification and validation of sales and purchases.

Hard copies might be required to be presented or submitted subject to the approval of the Commissioner of Internal Revenue (CIR) in case:

1. The invoices/receipts transmitted are missing/vague;
2. There are information that are not included in the data that is required to be transmitted to the EIS;
3. Validation of export sales data during verification of VAT refund claims;
4. Taxpayer is under fraud investigation;
5. There is/are skipped/missing series in the invoices/receipts issued; and/or
6. Other instances as may be determined by the CIR.

For everyone’s guidance and perusal.

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[1] Capable of storing and processing data required to be transmitted by covered taxpayers using their Sales Data Transmission System.

Related articles: https://i-leadacademy.org/2022/06/introducing-the-new-electronic-invoicing-systems-eis/

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