The EOPT Act aims to simplify tax payment processes, improve compliance, enhance transparency, and boost revenue collection.

Key Points:

• The EOPT Act classifies businesses into four categories based on annual gross sales, providing special benefits to micro and small businesses.
• Taxpayers can now file and pay their taxes electronically or manually at various authorized locations, making tax payments more convenient.
• Businesses are required to keep their financial records for five years instead of ten, reducing storage and data management costs.
• New deadlines are set for processing tax refunds, and the VAT refund process is simplified with risk-based categorization.
• VAT calculation now uses “gross sales” for both goods and services, with invoices replacing official receipts for documentation.
• The EOPT Act removes several compliance requirements, such as the annual registration fee and withholding for expense deductions, and exempts OFWs from filing income tax returns for foreign income.
• The BIR will develop an integrated digital system for all tax services, simplifying processes and benefiting micro and small taxpayers.
• VAT-registered sellers must issue VAT invoices for all transactions, detailing seller and buyer information, transaction details, and VAT breakdown, replacing the previous requirement for Official Receipts for services and leases.

Gain a deeper understanding of the EOPT Act by downloading the EOPT presentation: