Metro Manila (CNN Philippines, October 28) — The Department of Finance is looking to test next year its plan to let businesses issue electronic invoice statements and digital receipts, a move seen to streamline tax payments and monitoring.
“In light of the pandemic, we in the DOF plan to speed it up the implementation. We are looking at the Korean model for e-invoicing and we are working with the Koreans for a pilot project,” Finance Undersecretary Antonette Tiokno said during a Makati Business Club virtual forum on Wednesday.
“Hopefully, next year that project will be up and running already,” she added.
The e-invoicing project was originally scheduled for a pilot run from July to September. The Bureau of Internal Revenue has been in talks with the Korea International Cooperation Agency, which has funded the pilot stage of the e-invoicing system.
South Korea has been allowing paperless trading for years, with electronic bill transmissions improving the ease of trade and international transport. It can be done by uploading invoice documents through government-mandated online portal, or by tapping an internal or third-party service provider.
Receipts are often required for consumers and businesses to claim paid items or avail of return and exchange from a seller.
An electronic invoicing and receipting system would allow businesses to keep and send digital copies of transaction details to suppliers, other companies, and even retail buyers without issuing the printed transaction accounts on thermal paper.
Tionko said that with the Korean e-invoicing model, businesses no longer have to keep physical documents to prove their transactions are legitimate. However, she did acknowledge potential issues that may arise from this setup.
“If that were to be applied in the Philippines, we should also work on our legislation which still requires for you to keep physical copies, and the regulations of the BIR,” the official said.
She added that tax courts also require physical copies of receipts and other proof of transaction, which will have to be adjusted to factor in the shift to digital statements.
The government has been pushing wider use of e-payments and digital transactions to make the flow of money faster and smoother.
