The Invoicing and Accounting Requirements for Value-Added Tax (VAT) Registered Persons under Section 113 of the Tax Code is stated in Section 3 of the Revenue Regulations (RR) No. 7-2024 as follows:
All VAT-registered persons and those required to register for VAT shall comply with the following:
A. Invoicing Requirements
1. A VAT-registered person shall issue a duly registered VAT Invoice, for every sale, barter, exchange or lease of goods or properties, and for every sale, barter or exchange of service regardless of the amount of the transaction.
2. A VAT Invoice shall be issued as evidence of sale of goods and/or properties and sale of services and/or leasing of properties issued to customers in the ordinary course of trade or business, whether cash sales or on account (credit), which shall be the basis of the output tax liability of the seller and the input claim of the buyer.
B. Information Contained in a VAT Invoice - The following information shall be indicated in the VAT Invoice:
1. A statement that the seller is a VAT-registered person followed by the seller's Taxpayer Identification Number (TIN) and Branch Code (e.g., VAT Reg. TIN 123-456-789-00000);
2. The total amount which the purchases pays or is obligated to pay the seller with the indication that such amount includes the VAT; provided that:
2.1 The VAT amount is shown as a separate item;
2.2 The term "VAT-Exempt Sale" is written or printed, if the sale is exempt from VAT;
2.3 The term "Zero-Rated Sale" is written or printed, if the sale is subject to zero percent (0%) VAT;
2.4 If the sale involves goods, properties or services some of which are subject to and some of which are VAT Zero-Rated or VAT-Exempt, the invoice shall clearly indicate the breakdown of the sale price between taxable, exempt, and zero-rated components and the calculation of the VAT on each portion of the sale shall be shown on the Invoice. Provided, that the seller may issued separate invoices 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;
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 registered name or name, address and TIN of the purchaser, customer or client; and
5. Other Information required under Section 6 (B) of these Regulations.
C. Accounting Requirements - All Persons subject to VAT under Section 106 and 108 of the Tax Code shall maintain a subsidiary sales journal and subsidiary purchase journal on which the daily sales and purchases are recorded, in addition to the regular accounting records required.
Please refer https://www.bir.gov.ph/images/bir_files/internal_communications_1/Full%20Text%20RR%202024/RR%20No.7-%202024.pdf of the full text of RR No. 7-2024.
