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

If you are a seller or buyer of services or use/lease of 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 Official Receipt

Reference: Section 2, Number 2, Subnumber 2.2 of RR 18-2012

2.2 VAT OFFICIAL RECEIPT - for purposes of Value Added Tax (VAT) pursuant to Section 108 of the NIRC, as amended, it is a proof of sale of service and/or leasing of properties which shall be the basis of the output tax liability of the seller and the input tax claim of the buyer. It is a written admission or acknowledgment of the fact that money has been paid and received for the payment or settlement between persons rendering services and its customers.

If the seller is not a VAT-Registered (Percentage Tax), he/she must issue a Non-VAT Official Receipt

Reference: Section 2, Number 2, Subnumber 2.4 of RR 18-2012

2.4 NON-VAT OFFICIAL RECEIPTS - for purposes of Percentage Tax pursuant to TITLE V of the NIRC, as amended, it is a proof of sale of service and/or leasing of properties which shall be the basis of the Percentage Tax liability of the seller. It is a written admission or acknowledgment of the fact that money has been paid and received for the payment or settlement between persons rendering services and its customers. 

Source: RR 18-2012

Related topics:

Issuance of Sales Invoices, Official Receipts or Commercial Invoices

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

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

Issuance of Sales Invoices, Official Receipts or Commercial Invoices

Accordingly, Taxpayers who are engage in business or rendering services to others shall issue a duly registered receipts or sales or commercial invoices ...

... indicate in the receipt or invoice the name, business style, address and TIN of the purchaser.

Source: http://www.bir.gov.ph/index.php/tax-code.html#title4

Sec 237, NIRC

SEC. 237. Issuance of Receipts or Sales or Commercial Invoices. - All persons subject to an internal revenue tax shall, for each sale or transfer of merchandise or for services rendered valued at Twenty-five pesos (P25.00) or more, issue duly registered receipts or sales or commercial invoices, prepared at least in duplicate, showing the date of transaction, quantity, unit cost and description of merchandise or nature of service: Provided, however, That where the receipt is issued to cover payment made as rentals, commissions, compensations, fees, receipts or invoices shall be issued which shall show the name, business style, if any, and address of the purchaser, customer or client: Provided, further, That where the purchaser is a VAT-registered person, in addition to the information herein required, the invoice or receipt shall further show the Taxpayer Identification Number (TIN) of the purchaser.

The original of each receipt or invoice shall be issued to the purchaser, customer or client at the time the transaction is effected, who, if engaged in business or in the exercise of profession, shall keep and preserve the same in his place of business for a period of three (3) years from the close of the taxable year in which such invoice or receipt was issued, while the duplicate shall be kept and preserved by the issuer, also in his place of business, for a like period.

Related topics:

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

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