What is E-Invoicing and How will it affect your business?

What is E-Invoicing and How will it affect your business?

What is E-Invoicing?

The Electronic Invoicing System or E-Invoice System refers to the system developed and maintained by the e-Buyer or e-Seller or both in issuing invoices electronically through the internet.

E-Invoice shall include sales invoice, official receipt, billing invoice, debit/credit notes or other similar accounting documents issued electronically through the internet.

 

How does it affect businesses?

As part of the Republic Act No. 10963 or the TRAIN Law, taxpayers involved in e-commerce, export of goods and services, and all large taxpayers must issue e-invoicing or electronic receipts and then report their sales data to BIR on or before January 2023.

According to a report by the Philippine Daily Inquirer, the BIR plans to gradually expand e-invoicing to micro, small, and medium enterprises (MSMEs) by next year.

 

How can businesses set up their E-Invoicing system?

As a best practice, e-invoicing systems are typically a component of an accredited BIR Computerized Accounting System – meaning your business will only have a single source of truth for your business operations and transactions. This setup will be easier for compliance since the BIR can easily audit one system.

 

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