Taxpayer may convert and use the Remaining Official Receipts as Invoice and convert the Billing Statement/Statement of Account/Statement of Charges into Billing Invoice from April 27, 2024 until they are Fully Consumed - BIR RR No. 11-2024

The bureau has issued Revenue Regulations (RR) No. 11-2024 amending the Transitory Provisions of RR No. 7-2024 Relative to the Deadline for Compliance with Invoicing Requirements.

It stated in Section 8 (2.2) of these regulations that the Taxpayer may convert and use the remaining Official Receipts as Invoice and convert the Billing Statement/Statement of Account/Statement of Charges into Billing Invoice with details as follows: 

2.2 Taxpayer may convert and use the remaining Official Receipts as Invoice and convert the Billing Statement/Statement of Account/Statement of Charges into Billing Invoice. - For ease of doing business, taxpayers shall allowed to strikethrough the word "Official Receipt" [e.q. Official Receipt] or "Billing Statement/Statement of Account/Statement of Charges into Billing Invoice" [e. g. Billing Statement] on the face of the manual and loose leaf printed receipt and stamp "Invoice", Cash Invoice", "Charge Invoice", "Credit Invoice", "Service Invoice", or any name describing the transaction, and to be issued as primary invoice to its buyer/purchaser until fully consumed. Provided, that the converted "Official Receipt", or "Billing Statement/Statement of Account/Statement of Charges" shall contain the required information provided under Section 6(B) of RR No. 7-2024, including the the quantity, unit cost and description or nature of service pursuant to Sec. 237 of the Tax Code. Such information and other required information mal also be stamped if not originally indicated in the old Official Receipt/Billing Statement/Statement of Account/Statement of Charges to comply with these requirements.

The above documents shall considered valid for claiming of input tax by the buyer/purchaser and can serve as proof of both sales transaction  and payment at the same time for the period issued from April 27, 2024 until the are fully consumed, provided that the converted Invoice/Billing Invoice to be issued bears the stamped "Invoice/Billing Invoice" and there is no missing information as enumerated under Section 3(d)(3) of RR No. 7-2024.

Effective April 27, 2024, any manual/loose leaf "Official Receipts" issued without a stamped "Invoice" will be considered supplementary documents as provided in Section 8(2.1) of these Regulations, and intelligible for input tax claims.

The stamping of Official Receipt as Invoice or Billing Statement/Statement of Account/Statement of Charges as Billing Invoice by taxpayer does not require approval from any Revenue District Offices/LT Offices/LT Division but must comply with Section 8(2.3) hereof. Taxpayer should obtain newly printed invoices with an Authority to Print (ATP) before fully using or consuming the converted Official Receipts/Billing Statement/Statement of Account/Statement of Charges.

Please consider the link: https://www.bir.gov.ph/images/bir_files/internal_communications_1/Full%20Text%20RR%202024/RR%20No.%2011-2024.pdf of the full text of RR No. 11-2024.

Definition of Invoice and Supplementary Documents - BIR RR No. 7-2024

Should the taxpayers and concerned citizens understand the Definition of Terms stated in Revenue Regulations (RR) No. 7-2024?

In connection with the "Ease of Paying Taxes Act", the bureau has issued Revenue Regulations (RR) No. 7-2024 of the Registration Procedures and Invoicing Requirements.

The Definition of Invoice and Supplementary Documents is stated in Section 2 of the RR No. 7-2024 as follows:

SECTION 2. Definition of Terms - 

1. Invoice - it is a written account evidencing the sale of goods and/or services issued to customers in the ordinary course of trade or business. This is includes Sales Invoice, Commercial Invoice, Cash Invoice, Charge/Credit Invoice, Service Invoice, or Miscellaneous Invoice. It is also referred to as a "principal invoice" and is categorized as follows:

1.1 VAT Invoice - it is a written account evidencing the sale of goods, properties, services and/or leasing of properties subject to VAT issued to customers or buyers in the ordinary course of trade or business, whether cash sales or on account (credit) or charge sales. It shall be the basis of the output tax liability of the seller and the input tax claim of the buyer or purchaser.

1.2 Non-VAT Invoice - it is a written account evidencing the sale of goods, properties, services and/or leasing of properties not subject to VAT issued to customers or buyers in the ordinary course of trade or business, whether cash sales or on account (credit) or charge sales. It shall be the basis of the Percentage Tax liability of the seller, if applicable.         

Invoice may also sere as a written admission or acknowledged of the fact that money has been paid and received for the payment of goods or services.

2. Supplementary Document - it is a written document, other than sales or commercial invoice, which serves as source of accounting entries in the books of accounts.

This includes but not limited to official receipt, delivery receipt, order slip, debit and/or credit memo, purchase order, acknowledgement or cash receipt, collection receipt, bill of lading, billing statement, statement of account and any other documents, by whatever name it is known or called, whether prepared manually (hand written information) or preprinted/pre-numbered loose leaf (information typed using spreadsheet program or typewriter) or computerized as long as they are used in the ordinary course f business and being issued to customers or otherwise.

For purposes of VAT, Supplementary Documents are not valid proof to support the claim of input taxes by the buyers/purchasers of goods and/or services.

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