Author MRTC

REVENUE REGULATIONS NO. 7-2024

 
Issued on April 11, 2024 to implement Sections 113,235,236,237,238,242,243 of the National Internal Revenue Code of 1997, as amended by Republic Act No. 11976 (Ease of Paying Taxes [EOPT] Act) on the Registration Procedures and Invoicing Requirements Tax provisions.
 
Based on the said RR the word shall now have uniform terminology as follows:

  • 1. Invoice– it is a written account evidencing the sale of goods and/or services issued to customers in the ordinary course of trade and business. This 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 serve as a written admission or acknowledgement of the fact that money has been paid and received for the payment of goods or services.

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

 
This is 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 or pre-printed as long as are used in the ordinary course of business and being issued to customer otherwise.
 
For the 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.


SECTION 3 Invoicing Requirements for VAT Registered person under Section 113 of the Tax Code as follows:
“All VAT-registered person 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 of lease of goods or properties, and or exchange of services regardless of the amount of the transactions.
    • 2. A VAT Invoice shall be issued as evidence of sale of goods and/or properties and sale of service and/or leasing of properties issued to customer 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 tax claim of the buyer.”
  • B. Information contained in a 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;
    • 2. The total amount which the purchaser pays or is obligated to pay to the seller with the indication that such amount includes the VAT; provided that:
      • a. The VAT amount is shown as a separate item;
      • b. The term “VAT-Exempt Sale” is written or printed, if the sale is exempt from VAT;
      • c. The term “Zero-Rated Sale” is written or printed, if the sale is subject to zero percent (0%) VAT;
      • d. 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 issue 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 (₱1,000) 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.

Under Section 6 (B), the Invoice shall contain the following information:

  1. Taxpayer (Seller) Registered name as shown in the vendor’s BIR Certificate of Registration;
  2. A statement that the seller is a VAT-registered person (or NON-VAT registered, if applicable) followed by the seller’s Taxpayer Identification Number (TIN) and Branch Code;
  3. Seller’s registered business address;
  4. The term “Invoice” is printed or included;
  5. Complete name, registered business address and TIN of the Company as buyer;
  6. The date of transaction, quantity, unit cost and description of the goods or properties or nature of the service;
  7. Serial number of VAT sales invoice;
  8. Total amount of sales made;
  9. The VAT amount shall be shown as a separate item;
  10. In case of mixed transactions, breakdown of VATable sales, VAT amount, zero-rated sales, and VAT exempt sales;
  11. For supplementary documents such as official receipts, delivery receipts, order slips, purchase orders, acknowledgement receipts, collection or cash 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, it is required, in addition to the above-enumerated applicable information, that the phrase “THIS DOCUMENT IS NOT VALID FOR CLAIM OF INPUT TAX” in bold letters, be conspicuously printed at the face of such supplementary documents.
  12. Taxpayers whose transactions is not subject to VAT or percentage tax shall issue a Non-VAT invoice indicating at the face of such invoice the word “EXEMPT”.
  13. In case of manual invoices issued by vendor, the following information shall be printed at the bottom portion of the manual sales invoice:
    ATP Number/Outbound Correspondence Number (OCN), date issued;
    BIR Permit Number (if loose leaf invoice);
    Approved inclusive serial numbers of Invoice;
  14. In case of CRM or POS-generated invoices, the following information shall be printed at the top or bottom portion of the CRM/POS-generated invoices:
    Top portion
    Machine Identification Number (MIN)
    Serial Number of the CRM/POS machine (if branded machine) and/or the serial number of the Hard Disk Drive and/or Software License Number (if cloned machine);
    For reprinting of invoice, the word “REPRINT” should be prominently indicated;
    Bottom portion
    BIR Final permit to use (PTU) Number.
  15. In case of CAS-generated invoices, the following information shall be printed at the top or bottom portion of the CAS-generated invoices:
    Top portion
    For reprinting of invoice, the word “REPRINT” should be prominently indicated;
    Bottom portion
    BIR permit to use (PTU) Number and Acknowledgement Certificate Control Number (ACCN);
    Series range to be used; and
    Data issued (mm/dd/yyyy).
     


 
For Taxpayer/Vendors who will convert and use their remaining OR as invoice – ensure to comply with all the following for period January 22, 2024 – December 31, 2024 only.

  1. Strikethrough the word “Official Receipt” [e.g., Official Receipt] on the face of the manual and loose-leaf printed receipt
  2. Stamp the OR with the word “Invoice”, “Cash Invoice”, “Charge Invoice”, “Credit Invoice”, “Billing Invoice”, “Service Invoice”, as applicable.
  3. Ensure to indicate the required information as mentioned in the list above (nos. 1-15 above)
  4. Any OR, whether stamped “Invoice” or unstamped, issue after December 31, 2024, shall be considered invalid (ineligible for input VAT claims) and shall be rejected by the Company.
  5. All unused manual and loose leaf ORs to be converted as Invoice shall be reported by submitting an inventory of unused ORs, indicating the number of booklets and corresponding serial numbers within thirty (30) days upon effectivity of RR No. 7-2024 on or before May 27, 2024, to the RDO/LT Office/LT Division where the Head Office or Branch Office is registered, in duplicate original copies.