Thursday, January 16, 2014

Clarification on the Issuance of Official Receipt as Required by Government Auditors as Evidence of Receipt of Payment for Disbursements

With the numerous questions received by the Bureau regarding the requirement of Government Auditors on the issuance of Official Receipt as the acceptable evidence of receipt of payment for disbursement where the payee/recipient is a dealer, supplier or business establishment required by the BIR to issue the same in the sale/lease of goods or properties, and/or sale of services has issued the Revenue Memorandum Circular No. 2-2014 to clarify or make easier to understand with regards to this matter.

In the memorandum, it is stated that Revenue Regulations No. 18-2012 and Revenue Memorandum Order (RMO) No. 12-2013 in relation to Sections 106, 108, 113 and other pertinent provisions of the National Internal Revenue Code (NIRC), as amended, mandate that:

1. Sales Invoice (Cash or Charge) shall be issued as Principal evidence in the sale of goods and/or properties;
2. Official Receipt shall be issued as Principal evidence in the sale of services and/or lease of properties; and
3. Commercial Receipts/Invoices such as delivery receipts, order slips, purchase orders, provisional receipts, acknowledgment receipts, collection receipts, credit/debit memo, job orders and other similar documents that form part of the accounting records of the taxpayer and/or issued to their customers evidencing delivery, agreement to sell or transfer of goods and services, shall be Supplementary evidence only.

In relation thereto, Section II (H) of RMO No. 12-2013 provides that:

H. The buyer of goods on account or credit evidenced by a Charge-Sales Invoice shall be entitled to claim input taxes. Upon collection of the account by the seller, a Collection Receipt (Supplementary Receipt) shall be issued to the client/buyer to evidence the receipt thereof;

Base on the just stated, the Sales Invoice shall serve in lieu of Official Receipt in the sale of goods or properties for evidentiary purposes in terms of audit.

Please refer of the full text of the Revenue Memorandum Circular No. 2-2014. 

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