An invoice is an important document in any transaction. It primarily serves as a record of the transaction between a buyer and seller/supplier. Invoices are also important for tax purposes and are often required to be kept by the buyer for a prescribed amount of time. As the Philippines continues to develop, so do their processes, and invoicing is no different. The government of the Philippines has set a goal to have fully implemented e-invoicing systems by 2022.
Externalizing the process of invoicing clients is becoming increasingly common. There are various benefits that can be realized by externalizing invoicing, such as:
In the Philippines the Electronic Commerce Act was passed in the year 2000. According to this act electronic documents have been granted the same legal effect as paper documents. Therefore, electronic documents are accepted for the purpose of serving as evidence for the sale of transactions.
Electronic invoicing (e-invoicing) has since becoming mandatory in the Philippines under the Tax Reform for Acceleration and Inclusion Act (TRAIN). In terms of this act, taxpayers who export goods or services, large taxpayers and those involved in e-commerce, are required to issue e-invoices for their transactions. These taxpayers are further required to report their sales and data of the transactions to the Bureau of Internal Revenue, at the time of the sale, within 5 years from the TRAIN law coming into effect (i.e. before January 2023).
Invoices issued for any transaction in the Philippines are to contain the following information:
At INS Global our experts are able to assist goods and services providers who do not have a legal entity in the Philippines, to invoice their clients in the local currency (Philippine peso). INS Global has an efficient and well established process, that is adaptable according to the specific needs of our clients.
With more than 14 years of experience across the Asian market, INS Global can assist your enterprise with a multitude of services, such as Payroll and Tax, PEO, recruitment and company incorporation.