Showing posts with label RR Nos. 18-2012; Issuance of Principal Receipts / Invoices for the Purpose of Value Added Tax (VAT) & Percentage Tax ; Supplementary Receipts / Invoices. Show all posts
Showing posts with label RR Nos. 18-2012; Issuance of Principal Receipts / Invoices for the Purpose of Value Added Tax (VAT) & Percentage Tax ; Supplementary Receipts / Invoices. Show all posts

Friday, May 23, 2014

Issuance of Principal Receipts / Invoices for the Purpose of Value Added Tax (VAT) & Percentage Tax and Supplementary Receipts / Invoices or Commercial Invoices

Under Revenue Regulations No. 18-2012, Section 2 defines PRINCIPAL RECEIPTS / INVOICES as a written account evidencing the sale of goods and/or services issued to customers in  an ordinary course of business which necessary includes the following:

1. VAT SALES INVOICE - for the purposes of Value Added Tax (VAT) pursuant to Section 106 of the NIRC, as amended, it is 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.

2. VAT OFFICIAL RECEIPT - for purposes of Value Added Tax (VAT) pursuant to Section 108 of the NIRC as amended it s 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 the money has been paid and received for the payment or settlement persons rendering services and its customers.

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.

3. 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 written admission or acknowledgment of the fact that money has been paid and received for the payment or settlement persons rendering services and its customers.

Besides, under Section 3 of these regulations, also stated the SUPPLEMENTARY RECEIPTS / INVOICES which are also known as COMMERCIAL INVOICES, 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-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 the purposes of Value-Added Tax, are not valid proof to support the claim of Input Taxes by buyers of goods and/or services.

Please refer ftp://ftp.bir.gov.ph/webadmin1/pdf/67524RR%2018-2012.pdf of the full text of RR Nos. 18-2012.