Frequently Asked Questions on Invoice and Official Receipts
Q1: What is the effect of the passage of the Ease of Paying Taxes Act on the issuance Official Receipts and Billing Statement?
A1: The only required to be issued to buyers of goods or services is an invoice (sales invoice, service invoice, etc.) for the purpose of determining the seller’s liability to Percentage and Value-Added Tax. On the other hand, it is only the invoice that is a required document for the purpose of input tax on VAT.
Q2: What now happens to Official Receipts?
A2: Official receipts are now considered as supplementary documents that cannot be used for claim of input tax. Official Receipts, nonetheless, can still be used for accounting purposes.
Q3: I have existing and unused official receipts, until when can I use them?
A3: Official Receipts can only be used until January 22, 2024. From January 22, 2024, until fully consumed, the unused Official Receipts or billing statements can still be used by either using them as supplementary receipts or by converting them as an invoice. The guidelines on converting official receipts to invoices are covered in Revenue Regulations 7-2024 as amended by Revenue Regulations 11-2024.
Q4: What happens if I issue an Official Receipt without first converting it into a principal document?
A4: They are to be considered invalid and cannot be used for claim of input tax after April 27, 2024 and will amount to non-issuance of invoice, which is a violation of the Tax Code and will subject the company to penalty of at least one thousand pesos but not more than fifty thousand pesos AND suffer imprisonment of not less than two (2) years but not more than four (4) years pursuant to Section 264(a) of the National Internal Revenue Code.
Q5: What do I need to do if I choose to use the unused Official Receipt as a supplementary receipt?
A5: The taxpayer shall cause the stamping of the phrase “NOT VALID FOR CLAIM OF INPUT TAX” on the face of the Official Receipt. No inventory is necessary to be submitted to the Bureau of Internal Revenue (BIR).
Q6: Do I always have to issue an invoice for every transaction?
A6: In general, a seller shall issue an invoice to every transaction in the following scenario:
- When the transaction is valued at Php500.00 and above
- Regardless of the amount of transaction, if the buyer requested it.
Q7: I do not want to convert the Official Receipt as a principal document; what options are available to me?
A7: Apply for an Authority to Print the invoices and use the Official Receipt as a supplementary document for the purpose of acknowledging receipt of payment
Q8: Can I apply for authority to print online?
A8: YES. You can apply for authority to print through Online Registration and Update System (ORUS) of the Bureau of Internal Revenue.
Q9: I do not know what the new invoice should look like. Does the BIR issue a format for the invoice?
A9: YES. You may refer to Annex A of Revenue Memorandum Circular 77-2024.
Q10: Is business style still required to be shown in the invoice under the Ease of Paying Taxes Act?
A10: NO. Business Style is no longer required under the revised invoicing and registration requirements under Sections 112 and 237 of the National Internal Revenue Code.
Q11: I am using a computerized accounting system. How would EOPT affect me?
A11: Updating the computerized accounting system to comply with the EOPT is considered a major enhancement. You need to re-apply for a new Acknowledgment Certificate and surrender the old one.
Q12: When should the major enhancement of the computerized accounting system be made?
A12: The application and reconfiguration of the system must be done on or before December 31, 2024. An extension for another six (6) months may be granted provided that a request for extension is filed on or before December 31, 2024. A notice of reconfiguration must be submitted to the BIR thirty (30) days after the required configuration is completed.
Q13: What if I failed to make the required configuration within the given timeframe?
A13: A penalty amounting to Php50,000.00 shall be imposed.
This article was prepared by Morfe, Ceneta & Co., and CPAs for general information only and should not be used as a replacement for expert advice.