Reportorial Requirement of Unused Official Receipts to be Used as Invoice - BIR RR No. 7 - 2024

As of part of the "Ease of Paying Taxes Act" the bureau taxpayer will convert and use the remaining Official Receipts as Invoice under SECTION 8 (2) (2.3). Transitory Provisions of Revenue Regulations (RR) No. 7-2024 to read as follows:

2.3  Reportorial Requirement of Unused Official Receipts to be Used as Invoice Upon Effectivity of these Regulations - All unused manual and loose leaf Official Receipts to be converted as Invoice shall be reported by submitting an inventory of unused official receipts, indicating the number of booklets and corresponding serial numbers within thirty (30) days upon effectivity of these Regulations, to the RDO/LT Office/LT Division where the Head Office or Branch Office is registered, in duplicate original copies. The receiving Branch RDO shall transmit the Original copy to the Head Office RDO and retain the duplicate copy.

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.

Taxpayer to Convert and Use the Remaining Official Receipts as Invoice Valid until December 31, 2024 - BIR RR No. 7-2024

As of part of the "Ease of Paying Taxes Act" the bureau taxpayer will convert and use the remaining Official Receipts as Invoice under SECTION 8 (2) (2.2). Transitory Provisions of Revenue Regulations (RR) No. 7-2024 to read as follows: 

2. Unused Official Receipts -

2.1 xxxxxxxx

2.2 Taxpayer to convert and use the remaining Official Receipts as Invoice. - For ease of doing business, taxpayers shall be allowed to strikethrough the word "Official Receipt" on the face of the manual and loose leaf printed receipt and stamp "Invoice", "Cash Invoice", "Credit Invoice", "Billing Invoice", "Service Invoice". or any name describing the transaction, and to be issued as primary invoice to its buyer/purchases until December 31, 2024. These documents shall be valid for claim of input tax by the buyer/purchases for the period issued from January 22 to December 31, 2024., provided that the invoice to be issued bears the stamped "Invoice" and contains information required under Section 6(B) of these Regulations. The converted Invoice as defied Section 2 hereof can serve as proof of sales transaction and proof of payment at the same time. Any Official Receipts, whether stamped with "Invoice" or unstamped, issued after December 31, 2024, will be considered supplementary documents as provided in Section 8(2.1) of hereof and ineligible for input tax claims.

The stamping of official receipts as invoices by taxpayers does not require approval from any Revenue District Offices/LT Offices/LT Divisions but must comply with Section 8(2.3) hereof. Taxpayers should obtain newly hired printed invoices with an Authority to Print (ATP) before the fully using or consuming the converted Official Receipts or before December 31, 2024, whichever comes first.

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.

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