Tax Alert No. 40 [Revenue Regulations Nos. 8-2022 and 9-2022]

Prescribing Policies and Guidelines for the Implementation of Section 237 and 237-A of the National Internal Revenue Code, as Amended by Republic Act (R.A.) No. 10963, Otherwise Known as the Tax Reform for Acceleration and Inclusion or TRAIN, Through the Use of the Electronic Invoicing/Receipting System (EIS) and for the Admissibility of Sales Documents in Electronic Format

RR Nos. 8-2022 and 9-2022 have been issued to provide policies and guidelines for the implementation of Section 237 and 237-A of the NIRC, as amended by R.A. No. 10963 or the TRAIN Law.  

The following taxpayers are mandated to issue electronic receipts or sales/commercial invoices:

• Taxpayers engaged in the export of goods and services;
• Taxpayers engaged in electronic commerce (e-commerce); and
• Taxpayers under the Large Taxpayers Service (LTS).

In connection to this, the taxpayers mentioned above, except for the taxpayers engaged in e-commerce, are required to electronically report or transmit their sales data to the Bureau through the use of their Sales Data Transmission System.

Taxpayers who are not covered by the mandate may issue electronic receipts or sales/commercial invoices in lieu of manual receipts/invoices.

ln compliance with the relevant provisions of the TRAIN Law, the abovementioned taxpayers are directed to comply with the following:

1. Issuance of e-Receipts/e-Invoices to their customers/buyers, in lieu of manual receipts/invoices;
2. Registration of their Computerized Accounting System (CAS) generating e-receipts/e-invoices and/or Cash Register Machines (CRM)/Point-of-Sales Systems and Certification of Sales Data Transmission System; and
3. Transmission of the sales data covered by the e-receipts/e-invoices using their Sales Data Transmission System into the EIS of the Bureau.

Meanwhile, under RR No. 9-2022, the Supreme Court approved the Rules on Electronic Evidence allowing the admission of an electronic document or electronic data message as evidence in civil actions and proceedings, as well as quasi-judicial and administrative cases. The BIR has developed the Electronic Invoicing/Receipting and Sales Reporting System (EIS) to address the concerns in relation to substantiation of sales and purchases and to ease compliance with the BIR.

The regulations also cover those who have been authorized by the BIR to issue electronic SIs/ORs through the web-based facility of the EIS.

You may access the full version of the Regulations through the BIR website.