Contents of VAT Invoice and Official Receipt

See Section 113 (B) of NIRC

(B) Information Contained in the VAT Invoice or VAT Official Receipt. - The following information shall be indicated in the VAT invoice or VAT official receipt:

(1)  A statement that the seller is a VAT-registered person, followed by his Taxpayer's Identification Number (TIN); and

(2)  The total amount which the purchaser pays or is obligated to pay to the seller with the indication that such amount includes the value-added tax. Provided, That:

(a)  The amount of the tax shall be known as a separate item in the invoice or receipt;

(b)  If the sale is exempt from value-added tax, the term "VAT-exempt sale: shall be written or printed prominently on the invoice or receipt;

(c)  If the sale is subject to zero percent (0%) value-added tax, the term "zero-rated sale" shall be written or printed prominently on the invoice or receipt.

(d)  If the sale involved goods, properties or services some of which are subject to and some of which are VAT zero-rated or Vat exempt, the invoice or receipt shall clearly indicate the break-down of the sale price between its taxable, exempt and zero-rated components, and the calculation of the value-added tax on each portion of the sale shall be known on the invoice or receipt: Provided, That the seller may issue separate invoices or receipts for the taxable, exempt, and zero-rated components of the sale.

(3)  The date of transaction, quantity, unit cost and description of the goods or properties or nature of the service; and

(4)  In the case of sales in the amount of One thousand pesos (P1,000) or more where the sale or transfer is made to a VAT-registered person, the name, business style, if any, address and Taxpayer Identification Number (TIN) of the purchaser, customer or client. ^[75] 

AUTHORITY TO PRINT (ATP) AND MANNER OF PRINTING OF RECEIPTS / INVOICES

RR 18-2012 enumerated the lists of manner of printing and requirements of printing Receipts and Invoices

Fill-up BIR Form 1906 and
Bring COR/BIR Form 2303, ATP, last booklets of SI/OR/Commercial Invoices
Then, follow Section 3 of RR 18-2012

See Section 3 of RR 18-2012

SECTION 3.POLICIES AND GUIDELINES 

AUTHORITY TO PRINT (ATP) AND MANNER OF PRINTING OF RECEIPTS / INVOICES.- 

1. All persons, whether private or government, who are engaged in business shall secure /apply from the BIR an Authority to Print principal and supplementary receipts/invoices. 

National Government Agencies (NGAs), Government Owned and Controlled Corporation (GOCCs) and Local Government Units (LGUs) engaged in proprietary functions shall apply for ATP in the printing of their principal and supplementary receipts/invoices. 

2. For newly registered taxpayers, the ATP shall be secured simultaneously with the Certificate of Registration (COR).

3. The Taxpayer-applicant shall apply for an ATP and submit the required documents, using the on-line ATP System. However, in case of systems downtime, taxpayer shall apply for ATP and submit the required documents at the RDO or concerned LT Office having jurisdiction over the taxpayer’s Head Office.

4. As a general rule, all applications for ATP of the Head Office (HO) and all its branches shall be done on-line. In case of systems downtime as officially posted in the BIR website, all applications for ATP shall be manually filed and the corresponding ATP shall be manually issued through an alternative off-line ATP system, by the RDO or concerned LT Office having jurisdiction over the taxpayer’s Head Office. All applications for ATP processed during systems downtime shall be immediately uploaded by the concerned RDO or LT Office, upon availability of the on-line ATP system. 

5. There shall be one application for ATP per establishment (HO or branch) which shall be filed with RDO/LT Office concerned where the HO is registered. Each application shall be issued a separate ATP. The principal and supplementary receipts/invoices of the HO and each of the branches must have their own independent series of serial number. Each application as well as the printed accounting document/s shall reflect the exact address of the branch, TIN and the branch code attached to the TIN. The TIN, branch code (if applicable) and address of the HO must be reflected in the printed principal and supplementary Receipts/Invoices used in the business premises of the HO. Likewise, the printed principal and supplementary receipts/invoices to be issued/used in the branches (if applicable) must reflect the TIN, branch code and address of the branch/es.

6. The approved ATP shall be valid only upon full usage of the inclusive serial numbers of principal and supplementary receipts/invoices reflected in such ATP or five (5) years from issuance of the same, whichever comes first.

7. No ATP shall be granted for the printing of principal and supplementary receipts/invoices unless the required information which shall be prescribed in a separate revenue issuance, are reflected therein.

8. The replicate copy of the ATP issued shall be printed at the inside back portion of the cardboard cover of each booklet/pad of principal and supplementary receipts/invoices printed.

9. Only BIR Accredited Printers shall have the exclusive authority to print principal and supplementary receipts/invoices.

10. The on-line ATP System shall generate reports that will be prescribed in the Revenue Memorandum Order that will be issued for this purpose.

What are the other documents to be issued for selling of goods, properties, services, and use of services?

For selling of goods or properties:

Aside from the VAT Sales Invoice or Non-VAT Sales Invoice, sellers also issue a Collection Receipt.

For selling of services or use/lease of properties:

Aside from the VAT Official Receipt or Non-VAT Official Receipt, sellers also issue a Billing Invoice.

Collection Receipts and Billing Invoices belong to the so-called Supplementary / Commercial Invoices. These documents must also be covered by ATP and be printed by BIR accredited printers.

Source: Revenue Regulation 18-2012

Reference : Section 2, Number 3 of RR 18-2012

3. SUPPLEMENTARY RECEIPTS / INVOICES - for purposes of these Regulations, these are also known as COMMERCIAL INVOICES. It is a written account evidencing that a transaction has been made between the seller and the buyer of goods and/or services, forming part of the books of accounts of a business taxpayer for recording, monitoring and control purposes.

It is a document evidencing delivery, agreement to sell or transfer of goods and services which includes but are not limited to delivery receipts, order slips, debit and/or credit memo, purchase order, job order, provisional/temporary receipt, acknowledgement receipt, collection receipt, cash receipt, bill of lading, billing statement, statement of account, and any other documents, by whatever name it is known or called, whether prepared manually (handwritten information) or pre- Page 3 of 5 printed/pre-numbered loose-leaf (information typed using excel program or typewriter) or computerized as long as it is used in the ordinary course of business being issued to customers or otherwise.

Supplementary receipts/invoices, for purposes of Value-Added Tax, are not valid proof to support the claim of Input Taxes by buyers of goods and/or services. 

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

Source Document Sample : Check

The image is a sample of a check.

Normally, it is more convenient for business owners to issue checks when paying for safer transactions and easy tracking of transactions relating to disbursements.

A check is a draft upon a bank and it is payable on demand, signed by the maker (drawer), containing an unconditional promise to pay a certain sum of money to the order of the payee.

Source Document Sample : Official Receipts

Official Receipt is a document which serves as an evidence or proof of payment.  When, a company issues official receipt, the company acknowledges that it received money in exchange of the good it sold or service it rendered. 

This is an example of manual Official Receipt.

While, this is an example of machine-generated Official Receipt.

Introduction to Record-Keeping or Bookkeeping

Regardless of forms of business entity an organization belongs, the entity must write financial entries and keep financial records on its own. One of the main reason is that in the Philippine settings businesses are required to file tax returns and  pay taxes dues aside from other government compliance requirements such as local taxes and municipality permits, sss premium contributions, phil-health premium contributions, pag-ibig or hdmf contributions, etc.  What the entity files or pays to the government agencies and bureaus are based on the financial records it writes and keeps.

Record keeping : Bookkeeping  

In businesses, financial transactions are recorded. The tool where the financial records of the business are written and kept are called Books Of Accounts.  The manner the entity records its financial transactions is called record keeping or bookkeeping.

Bookkeeping has two kinds, the Single-Entry Bookkeeping and Double-Entry Bookkeeping

Single-Entry System

Single-Entry refers to the incomplete recording of transactions. In its simplest form, only one record maybe kept where all the transactions are narratively entered or posted. Thus, it does not provide properly analyzed transactions and can not recognized the effects of transactions all the time. As a consequence, preparers of financial statements are faced with some problems reconstructing the accounts to properly prepare financial statements and determine the income or loss. 

Double-Entry System

Double-Entry refers to the dual-effect that each transaction has on the accounting equation.  Under this system, all the transactions are assumed to have a dual-effect or two-fold effect on the accounting values and at least affects two accounts.    

Accounting values: Value Received and Value Parted With  

Meaning, in the Double-Entry System, it's like a relationship, there's a give and take.  We give the value parted with, and we take the value received. 

What we must know in record-keeping or bookkeeping?
Click each topic to read the explanation/discussion

• Economic Events

• Business Transactions

• Source Documents

• Value Received and Value Parted With

• Monetary Equivalent of the value received and the value parted with

• Accounting Elements

• Accounts

• Accounting Equation

• Debit and Credit

• Normal Balances of Accounting Elements / Accounts

• Transaction Analysis

• Journal Entries and Journalizing 

• Books of Original Entry : General Journal and Special Journals

• Posting

• Books of Final Entry :  Ledgers

• Trial Balance

• Financial Statements

Researched by:

Analyzing and summarizing business transactions

Here's the CMO3 S2007 outline for analyzing and summarizing business transactions

3.  Analyzing and summarizing business transactions
3.1   Definitions of business transactions and source documents
3.2   Summary of business activities (financing, investing, operating)
3.3   The accounting equation
3.4   Analyzing and accounting for business transactions
3.5   Presentation of results of routine transactions by preparing the Basic Income Statement, Owner’s Equity Statement, Balance Sheet, and Statement of Cash Flows

=================
Economic Events 

The first objective of any accounting system is to identify the economic events that can be expressed in financial terms by the system. 

Economic Event – is any event that directly affects the financial position of the company. In other words, this means any business transaction or financial affair of the company...read more

Business transactions

A Business Transaction is exchanging of values between transacting persons/parties. 

Exchange of values means that one value is received in return or in exchange for another value parted with...read more 

Source Documents

Source Documents are the forms, invoices, receipts, legal papers, or other documents which underlie a business transaction.  These are the so-called evidential matter.   Existence of evidential matter supports and corroborates the objectivity of accounting records...read more

Varied Forms of Values

Again, a business transaction is an exchange of values. There's a give and take in a business transaction. There are two items that must be considered and analyzed in a business transaction, the value received and the value parted with...read more

Summary of business activities

• OPERATING

The Operating Activities are those business transactions which generates revenue for the organization. These include expenses incurred to produce revenues. 

The following are the transactions included under the operating activities...read more

• INVESTING

The main purpose of investing activities is to acquire assets in order to facilitate and expedite the operations of the business. 

The Investing Activities are those transactions which involve acquisition and disposal of assets other then inventory, which are necessary in the business operations...read more

• FINANCING

The Financing Activities are those transactions between the entity and its owners or creditors. 

The primary focus of financing activities is to raise working capital necessary to be used in business operations.  The owners invest to the entity and/or creditors lend capital to the entity...read more

The accounting equation

In the point of view of Financial Position, the accounting equation underlies the processes used to capture the effect of economic events.

This equation generally portrays the equality between the economic resources of entities and the claims to these resources.  Meaning, the resources of entities are provided by creditors and owners...read more 

Analyzing and accounting for business transactions

Analyzing and accounting for business transactions, one has to acquire ability to recognize the dual effects of each transaction has on the accounting equation...read more

Presentation of results of routine transactions by preparing the Basic Income Statement, Owner’s Equity Statement, Balance Sheet, and Statement of Cash Flows