Any business whose gross annual sales or receipts exceed PHP 3 million must register for VAT with the BIR. From that point, every taxable supply must be transmitted through EIS at the standard 12 % rate — or at 0 % for qualifying exports and PEZA-registered entities. Voluntary registration is permitted below the threshold and is advisable for businesses that sell predominantly to VAT-registered buyers.
The business issues invoices without VAT during the grace period before registration is finalised, creating a gap in the EIS audit trail that BIR will query on the first return.
Correct VAT logic — 12 %, 0 % or exempt — applied automatically per supply type from the day VAT registration takes effect, with a clean EIS record from the first transaction.
Reconciling input and output VAT manually each month from multiple invoice batches and purchase records consumes three to four hours per filing cycle.
Automatic input/output VAT ledger providing a reconciled basis that maps directly to BIR Form 2550M — one click to export for eFPS submission.
Registration is required when gross annual sales or receipts from VATable supplies exceed PHP 3 million. Businesses below the threshold may register voluntarily. PEZA and BOI-registered entities have different rules depending on their registration type.
Correct rates, automatic ledger, clean BIR basis — no manual reconciliation.
