The Philippines Economic Zone Authority (PEZA) and the Board of Investment (BOI) offer substantial incentives for BPO, IT-BPM, manufacturing and export companies — including zero-rated VAT on local purchases from non-PEZA suppliers, an income tax holiday (ITH) of four to seven years and a subsequent preferential 5 % gross income tax (GIT) rate. Maintaining these incentives depends entirely on correctly structured EIS invoicing at every transaction.
PEZA-registered companies are issuing supply invoices without the required PEZA registration reference to local non-PEZA vendors — who then charge standard 12 % VAT, foregoing the zero-rating that should apply.
EIS invoices that automatically include the PEZA registration certificate number and zero-rate coding wherever the buyer is tagged as a PEZA-registered entity in the company profile.
The finance team cannot quickly identify which purchase invoices qualify for zero-rated input VAT under the PEZA status and which are standard-rated — leading to overpayment of VAT to domestic suppliers.
Supplier-level PEZA status flag with automatic VAT-treatment rules that apply the correct rate per purchase line and track the zero-rated VAT credit across periods.
Zero-rated invoicing and incentive-aware bookkeeping that protect the PEZA entitlement.
