Thursday, April 30, 2015

What to issue if your business is selling goods or properties? Sales Invoice? or Official Receipt?

If you are a seller or buyer of goods or properties, what document/s must you issue (for sellers) / receive (for buyers)?

The answer depends on what business tax type the seller is registered.

If the seller is VAT-Registered, he/she must issue a VAT Sales Invoice

Reference: Section 2, Number 2, Subnumber 2.1 of RR 18-2012
2.1 VAT SALES INVOICE - for purposes of Value Added Tax (VAT) pursuant to Section 106 of the NIRC, as amended, it is a written account evidencing the sale of goods and/or properties issued to customers in an ordinary course of business, whether cash sales or on account (credit) which shall be the basis of the output tax liability of the seller and the input tax claim of the buyer. Cash Sales Invoices and Charge Sales Invoices falls under this definition.
If the seller is not a VAT-Registered (Percentage Tax), he/she must issue a Non-VAT Sales Invoice

Reference: Section 2, Number 2, Subnumber 2.3 of RR 18-2012
2.3 NON-VAT SALES INVOICES - for purposes of Percentage Tax pursuant to Section 116 of the NIRC, as amended, it is a written account evidencing the sale of goods and/or properties issued to customers in an ordinary course of business, whether cash sales or on account (credit) which shall be the basis of the Percentage Tax liability of the seller. 
Source: RR 18-2012

Related topics:

What to issue if your business is selling services or use of properties? Sales Invoice or Official Receipt

Issuance of Sales Invoices, Official Receipts or Commercial Invoices





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