Beyond E-Invoicing: A QR code for every product, trust in every transaction

Imagine buying a bottle of medicine, a can of milk, or a mobile phone. With one scan of a QR code, you could verify the manufacturer, check the product’s origin, examine its ingredients and specifications, confirm its expiry date, and access relevant safety and authenticity information.

At the same time, the sale generates an electronic invoice that records the transaction for the Bureau of Internal Revenue (BIR). The consumer gains confidence, the business gains a better tool for managing inventory, and the government gains a digital record that can detect unreported sales and collect the taxes due.

Why build separate systems when one integrated digital infrastructure could serve all three?

The BIR is pursuing electronic invoicing to capture taxable transactions, reduce evasion, and improve revenue collection. The objective is sound. But must businesses shoulder the cost of implementing another government-mandated system? Can we achieve more by investing in a shared digital infrastructure that benefits government, entrepreneurs and consumers alike?

I propose a national product identification and transaction verification system inspired by GS1, the global organization whose standards underpin barcodes used throughout commerce.

The ideal arrangement combines two complementary functions. E-invoicing becomes the transaction layer — recording who sold what, to whom, when, at what price and with what applicable taxes.

QR identification becomes the product information layer, connecting goods to authenticated information about their identity, origin, manufacturer, and other relevant attributes, including tracking and tracing in the entire supply chain. Together, they will enable the BIR to cross-check transactions while giving businesses and consumers access to reliable product information.

GS1 standards allow products to be identified consistently across the supply chain — manufacturers, distributors, retailers, markets, and consumers. Its two-dimensional barcode technology, including GS1 Digital Link, can connect a product to additional information with a single scan.

The Philippines could adopt these international standards in partnership with GS1 Philippines or develop a government-administered system compatible with them.

Every business covered by the system would be required to register its products and disclose and update seven essential categories of information, appropriate to the nature of each product.

These seven have been duly debated, deliberated, and accepted in international trade. These are:

1.Product identity: description, brand, model, and unique identifier.

2. Manufacturer or responsible business: name and verifiable business identity.

3.Origin and production: country of origin and relevant manufacturing details.

4.Safety and composition: ingredients, materials and applicable safety information.

5.Expiry and traceability: expiry dates, batch or lot numbers, and recall information where applicable.

6.Market and regulatory compliance: intended market, required certifications, registrations and applicable standards.

7.Authenticity and digital access: verification services, relevant product records, and authorized digital links or APIs.

The QR code would connect consumers and authorized users to verified information, while the underlying database would support regulatory checks and product traceability.

Today, consumers depend on labels, advertisements, and sellers’ representations. A QR code linked to reliable information by the manufacturer could give them a stronger basis for deciding what to buy.

Before purchasing food, medicine, cosmetics, or electronics, consumers could check relevant information about the manufacturer, origin, ingredients, expiry date, certifications and authenticity.

This would not totally eliminate counterfeit products or false declarations. Information must be authenticated, regularly updated, and subject to enforcement. But discrepancies would become easier to identify, and product recalls could be communicated more efficiently.

When businesses must stand behind accurate, verifiable and updated product information, transparency becomes a source of trust. Consumers gain greater confidence, while legitimate businesses gain an advantage over those who profit from deception.

The system should not be viewed merely as another compliance obligation. Business benefits too.

Standardized product identification could improve inventory management, reduce duplicate records, identify expiring stocks, limit wastage and losses, and facilitate the movement of goods between warehouses, shops, and online platforms.

Unique identifiers and traceability records could help detect counterfeit goods, fraudulent listings, and suspicious supply chain activity. Interoperability would also make it easier for businesses to exchange product information across accounting, logistics and retail systems.

Businesses would remain responsible for the accuracy of their declarations. But they should not have to purchase expensive proprietary software simply to comply with government requirements.

Let the government pay for the infrastructure.

The BIR’s electronic invoicing initiative should become the transaction component of this wider system.

Each sale would generate an authenticated electronic invoice recording the seller, date, goods or services, quantities, transaction value, and applicable taxes. Unique invoice identifiers would connect transactions to relevant product records.

The BIR could compare reported sales with purchase records, flag discrepancies, and identify potentially fictitious invoices or underreported transactions. Such indicators would guide audits and establish tax avoidance.

Government should finance the shared registry, verification services, servers, cybersecurity, and basic invoicing tools. Businesses should be able to use a free government application or connect their existing accounting systems through open, standardized interfaces.

If administered directly by the government, product identifiers and basic invoice verification services should be free. If GS1 Philippines participates in providing internationally compatible identifiers or services, any applicable fees should be transparent. Where legally permissible, qualifying business expenses therefrom could be tax deductible.

The preferred approach is a government-funded basic service, developed with GS1 Philippines and industry stakeholders where appropriate, without unnecessarily duplicating internationally recognized standards.

The government should measure success by additional net revenue, reduced compliance costs, and demonstrable improvements in traceability — not by the number of QR codes issued.

Implementation should be phased, with technical assistance for small enterprises, provisions for unreliable internet connectivity, and safeguards against unauthorized access or misuse of commercial data.

The Philippines need not choose between electronic invoicing and product QR codes. It should integrate them: the product code identifies what is being sold; the electronic invoice records the transaction; and the BIR uses authenticated information to improve tax compliance.

Government investment in this shared infrastructure could yield benefits extending well beyond taxation. Businesses gain efficiency, consumers are empowered through information gained, and government acquires better tools to collect taxes legally due.

The ultimate objective is not necessarily a QR code on every product. It is a commercial environment where transparency reduces fraud, information empowers consumers, and trust becomes an asset shared by businesses, government and the public.