The Philippines is the latest country in the Asia-Pacific region to advance on their e-invoicing regulations. Following in the footsteps of an increasing number of countries worldwide, the Philippine Government is planning to implement electronic invoicing controls by 2022 in order to facilitate tax compliance.
Although e-invoices have been recognised as a legal equivalent to paper documents since 2000, the recent move is a long-awaited push towards fully-welcoming the digital transformation into government practices. The changes will require a considerable amount of education for taxpayers on the new processes, as well as the need for businesses to invest in new in-house systems.
Steps toward digitisation
The Philippine Digital Transformation Strategy 2022, a document discussing the governmental strategy to achieve the digital transformation, was released by the Department of Information and Communications Technology earlier this year. The document outlines that the country aims to complete and deploy a new eGovernment system by 2022.
South Korea has played a large part in plans to develop an e-invoicing program in the Philippines. However, as the program is in early stages, a final decision regarding when and how the e-invoicing program will be deployed has not been made.
The Philippines Innovation Act
The Philippines has recently introduced a new law, the Philippines Innovation Act (the Act), to foster innovation and promote entrepreneurship. The government allotted 1 billion PHP (approximately EUR 17 million) for the law’s first-year implementation.
The Act highlights the importance of innovation in governmental policies and aims to boost growth and internationalisation among micro, small and medium enterprises while enhancing the welfare of low-income groups.
As established under the Act, the National Innovation Council (NIC) will be working to “develop the country’s innovation goals, priorities, and long-term national strategy.” The Council will develop a National Innovation Agenda and Strategy Document (NIASD) in its effort to establish the Philippines’ long-term strategies on innovation.
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