The Bureau of Internal Revenue (BIR) has linked up with the Korea International Cooperation Agency (KOICA) in a joint undertaking to streamline business operations in the country.
The study pertains to the implementation of an electronic invoicing system as mandated under the Tax Reform for Acceleration and Inclusion Act (TRAIN).
The review of the final report and the terms of reference of the Asian Development Bank-funded consultants are now ongoing for the e-invoicing project
For the Phase 1 of the project, the KOICA agrees to provide a grant for $7.3 million.
According to BIR Deputy Commissioner Arnel Guballa, a KOICA team visited the agency and the Department of Finance (DoF) just last year to gather data on the proposed electronic receipt, invoice and sales reporting system.
“The review of the final report and the terms of reference of the Asian Development Bank-funded consultants are now ongoing for the e-invoicing project,” Guballa said.
In addition, the BIR executive told Finance Secretary Carlos G. Dominguez III the agency already identified the batch of 100 pilot taxpayers that will take part in the project.
The DoF pushed for the e-invoice system as this will help boost revenue collection and strengthen the tax system.
Earlier in 2018, a delegation from Manila led by Finance Undersecretary Karl Kendrick Chua visited the Republic of Korea to gain a deeper insight into that country’s e-invoice system implementation.
Under Section 237 of Republic Act 10963 or the TRAIN Law, large taxpayers and exporters are required within the next five years to electronically issue their invoices/receipts, as well as report their sales data to the BIR at the point of sale.