Philippines Invoice Template
Create free Philippines invoices online with VAT/GST
Create free Philippines invoices online with VAT/GST
Simplify filing VAT in the Philippines with online invoice templates. These ready-to-send invoice templates have built-in fields for required information, just fill in the information. Build your VAT-compliant invoice today.
All registrants must issue invoices that include all of the necessary details & to ensure the customer may reclaim the output VAT
The BIR allows VAT invoices in foreign currencies. These will be converted into ₱ (Philippine Peso) according to the public exchange rate.
Philippines Invoice Requirements
|✔ Date of transaction|
|✔ Unique, sequential serial invoice number|
|✔ Vendor’s TIN and personal details (registered business name and address)|
|✔ Customer’s TIN and details (for amounts exceeding ₱ 1,000)|
|✔ Description of the goods or services|
|✔ Quantity of goods|
|✔ Unit cost, total cost, and VAT amount listed separately|
|✔ If the invoice contains sales of different VAT types, each should be clearly and separately indicated|
Value Added Tax (VAT) is an indirect sales tax levied on receipts from the sale of goods or services or on the import of goods within the Philippines. As an indirect tax, VAT is paid by the end consumer. In the Philippines, the standard VAT rate is currently 12%. Some sales, including for export, are zero-rated. As a consumption tax, VAT is charged at every stage of the supply chain and is passed on to the consumer at the final point of sale.
The tax authority responsible for collecting and enforcing taxation in the Philippines is called the Bureau of Internal Revenue – or BIR.
|VAT Rates & Types||Included goods and services|
|18% – High||“Amusement tax” on leisure and entertainment, such as bars or nightclubs|
|12% – Standard||Most taxable goods and services|
|0% – Reduced rate||Goods for export, renewable energy, public transportation, international shipping|
|0% – Zero-rated||Utilities (gas, water), medical supplies, reading products (books, newspapers, magazines), insurance, financial services, real estate, import of certain agricultural goods|
If you are doing business in the Philippines, whether you are physically located in the country or are selling to customers located there, and you meet the below criteria, you will need to file for VAT. The following individuals or entities are obligated to pay VAT.
Persons or businesses selling goods or services in the Philippines that are subject to VAT, as listed above, and whose annual gross sales or receipts exceed or are expected to exceed ₱ 1,919,500.00 (around $38,000). In addition, any person or business importing goods into the Philippines will be obligated to file VAT.
In order to pay VAT in the Philippines, you will need to register to receive a Taxpayer Identification Number or TIN. This number lets the BIR identify taxpaying individuals and entities, and calculate input and output VAT to determine return amounts. Filing any documents or VAT payments will require you to include your TIN.
Registering for your TIN online is fairly easy. The BIR’s eTIN website makes getting your TIN number straightforward. All you need is a valid email address and to check that you haven’t previously registered. You will be asked to enter up-to-date personal information. Once you have completed the online form, just click ‘submit’ and follow the detailed instructions sent via email. There is a registration fee of ₱ 500.00, or just under $10.
Once you are registered to file VAT in the Philippines, you will be able to issue VAT invoices and file for VAT refunds. The BIR requires that invoices are in an authorized format, so before issuing a receipt or invoice, make sure the format is registered and that you have received Authority to Print approval. Once you are registered, you will also submit your Books of Accounts or other ledgers.
Once you are registered to pay VAT in the Philippines, there are a number of requirements to keep in mind when invoicing as a VAT Taxpayer:
● Issue invoices for every sale exchange of goods or services.
● Withhold the correct amount of VAT with every sale.
● Maintain accurate and up to date records.
● File VAT monthly or quarterly using the designated BIR form. If you have a payment to make, do so within the determined period of time.
● Ensure that you pay the annual registration fee.
If you incur VAT-related expenses related to your business operations, this is called input tax. You will be able to reclaim this VAT. The amount of VAT collected from sales is referred to as output tax. Once you have submitted your VAT forms, the difference between input and output VAT will be calculated. If you are owed a refund, it will be issued, and if you are required to pay, you will receive notification of the amount. Essentially, if you have paid more VAT than you have collected, you will be entitled to a refund.
Under the recently released TRAIN law, E-Commerce online sellers will need to issue electronically created invoices. E-Commerce sellers, freelancers, and online businesses based in the Philippines or with end consumers in the Philippines can register for e-invoicing by applying for approval of a computerized accounting system and ensuring that the system is equipped to produce hard-copy invoices at any time. Mandatory e-invoicing, according to the TRAIN law, will be fully implemented by January 2023.