July 31, 1978
SUBJECT : Implementing Regulations to Section 216 of the National Internal Revenue Code of 1977, as Amended, by Presidential Decree No. 1457; and Further Amending the Pertinent Provisions of Revenue Regulations V-1, Otherwise Known as the Bookkeeping Regulations
TO : All Internal Revenue Officers and Others Concerned
Pursuant to the provisions of Presidential Decree No. 1457 in relation to Section 326 and Section 4 of the National Internal Revenue Code of 1977, as amended, these regulations are hereby promulgated.
SECTION 1. Scope. — These regulations shall govern the issuance of receipts or sales or commercial invoices.
SECTION 2. Definition of Terms. — For purposes of these regulations, the following terms shall be taken to mean as follows:
1. The term "receipt(s)" means a written admission or acknowledgment of the fact of payment in money or other settlement between seller and buyer of goods, debtor and creditor, or persons rendering services and client or customers.
2. The term "sales or commercial invoice(s)" shall mean a written account of goods sold or services rendered and the price charged therefor, or a list of goods consigned and the value at which the consignee is to receive them or any other list by whatever name it is known which is used in the ordinary course of business evidencing any transaction, sale and/or transfer of goods and/or services.
SECTION 3. Invoices or Receipts. — Chapter IV of Revenue Regulations V-1, as amended, shall read as follows:
Persons subject to tax to issue Receipts or Sales or Commercial Invoices; Contents of Registered Receipts or Invoices. All persons subject to an internal revenue tax shall, for each sale or transfer of merchandise or for services rendered valued at five pesos or more, issue duly registered receipts or sales or commercial invoices, prepared at least in duplicate, showing the date of the transaction, quantity, unit cost and description of merchandise or nature of service: Provided, that in the case of sales, receipts or transfers in the amount of one hundred pesos or more, or, regardless of amount, where the sale or transfer is made by producers, manufactures, importers, wholesalers, or where the receipt is issued to cover payment made as rentals, commissions, compensations or fees, the receipts or invoices shall further show the name, business style, if any, and address of the purchaser, customer, or client. The original of each receipt or invoice shall be issued to the purchaser, customer or client at the time the transaction is effected, who, if engaged in business or in the exercise of profession, shall keep and preserve the same in his place of business for a period of five years from the date of the invoice or receipt, the duplicate shall be kept and preserved by the issuer, also in his place of business for a like period: Provided, that persons subject to tax, whose gross sales, earnings or receipts during the last preceding year exceed thirty thousand pesos shall, for each sale or transaction, issue a receipt or an invoice, irrespective of the value of the article sold or service rendered.
The Commissioner of Internal Revenue may, in meritorious cases, exempt any person subject to an internal revenue tax from compliance with the provisions of this section. In any event, market vendors selling exclusively domestic meat, fruits, vegetables, games, poultry, fish and other food products are hereby exempted from the provisions of this section.
The provisions of this section, together with the penal provisions in Presidential Decree No. 1254 shall be posted in a prominent place in the establishment covered by the requirements thereof. (Sec. 216, NIRC of 1977, as amended by P.D. 1457).
SECTION 4. Vouchers for Transactions; Issuance of Receipts or Sales or Commercial Invoices. — Section 14 of Revenue Regulations V-1, as amended, shall read as follows:
Section 14. Source Document of Transactions; Issuance of Receipts or Sales or Commercial Invoices.
a) In General. Persons subject to an internal revenue tax who are required to keep the books of accounts mentioned in Section 321 of the National Internal Revenue Code of 1977, as amended, shall have a voucher for each entry in their books. The voucher may be an invoice, receipt, check or other documents which shall show the details of each transaction.
b) Persons Required to Issue Receipts or Sales or Commercial Invoices:
1) Those whose sales or transfers of merchandise or whose services rendered are valued at five pesos or more;
2.) Those whose sales or transfers of merchandise or whose services rendered are valued at one hundred pesos or more (plus the additional requirement of indicating thereon the name, business style and address of the purchaser, customer or client).
3) Those who receive payment made as rentals, commissions, compensations or fees, regardless of amount received (plus the additional requirement of indicating thereon the name, business style and address of customer or client);
4) Producers, manufacturers, importers, wholesalers, regardless of amount of sale or transfer made (plus the additional requirement of indicating thereon the name, business style and address of customer or client);
5) Those whose gross sales, earnings or receipts during the last preceding year exceed thirty thousand pesos, irrespective of the amount involved.
c) Persons Not Required to Issue Receipts, Sales or Commercial Invoices:
1) Those whose sales or transfers of merchandise or for services rendered are valued below five pesos, provided, their gross sales, earnings or receipts during the last preceding year do not exceed thirty thousand pesos. (In case the transaction is valued at less than five pesos, a receipt or invoice need not be issued, but unless it is issued, the transaction must be recorded immediately at the time it is effected in a registered petty cash book, the entries in which shall be summarized at the end of the day and the total thereof transferred on the same day to a sales receipt or invoice clearly indicating thereon that the same is the "petty sales for the day.");
2) Those exempted by the Commissioner of Internal Revenue;
3) Market vendors selling exclusively domestic meat, fruits, vegetables, games, poultry, fish and other food products.
d) Documentation and Substantiation of Transactions. — Every purchase or expenditure by a taxpayer subject to these regulations shall be duly supported by a receipt or invoice issued by the vendor or the person rendering the service in accordance with Section 15 of these regulations, should any of the receipts or invoices lack any of the information required to be indicated therein, such receipts or invoices shall be deemed inadequate for documentation or substantiation of the particular transaction. However, in case no receipt or invoice was issued by the vendor or the person rendering the service for the reason that he is exempt from the requirement to issue the same, the purchaser, customer or client may require the vendor or the person rendering the service to sign a purchase or expense voucher indicating his name, address and business style, if any; and shall show the name and address of the purchaser, customer or client, date when the transaction was effected, quantity, unit cost and description of transaction, merchandise or nature of the service rendered, as the case may be.
SECTION 5. Form and Manner of Issuance of Receipts or Sales or Commercial Invoices. — Section 15 of Revenue Regulations V-1, as amended, shall read as follows:
Section 15. Form, Time and Manner of Issuance of Receipts or Sales or Commercial Invoices.
a) Form. — Receipts or Sales or Commercial Invoices must be serially numbered and made at least in duplicate. They may have as many duplicate copies as may be necessary for the purposes of the taxpayer using the same, but the duplicate copies shall bear the same serial number as the original. They shall be bound in 50's to 100's per book or pad and shall show among other things the name, business style, if any, taxpayer account number and business address of the person or entity using the same; and shall further bear on the original and every copy thereof, on the lower left hand corner the name of the printer and the number of his authority to print. They shall contain such spaces or lines and columns, as may be necessary and appropriate for the business of the taxpayer concerned.
b) Time and Manner of Issuance. — Where the transaction is required to be covered by a receipt or invoice, the same shall be prepared at least in duplicate and issued at the time the transaction is effected, showing the date of the transaction, quantity, unit cost, description of the transaction, merchandise or nature of the service rendered for which payment is received, e.g. rentals, commissions, fees, etc., and total value of the transaction.
SECTION 6. Repealing Clause. — All rules and regulations contrary to or inconsistent herewith are hereby repealed or amended accordingly.
SECTION 7. Effectivity. — These regulations shall take effect thirty days after its publication in the Official Gazette.
(SGD.) PEDRO M. ALMANZOR
Acting Minister of Finance
RECOMMENDED BY:
(SGD.) EFREN I. PLANA
Acting Commissioner of Internal Revenue
TAN: P4519-F2828-A-8
REVENUE REGULATIONS NO. 12-78
SUBJECT : Implementing Regulations to Section 216 of the National Internal Revenue Code of 1977, as Amended, by Presidential Decree No. 1457; and Further Amending the Pertinent Provisions of Revenue Regulations V-1, Otherwise Known as the Bookkeeping Regulations
TO : All Internal Revenue Officers and Others Concerned
Pursuant to the provisions of Presidential Decree No. 1457 in relation to Section 326 and Section 4 of the National Internal Revenue Code of 1977, as amended, these regulations are hereby promulgated.
SECTION 1. Scope. — These regulations shall govern the issuance of receipts or sales or commercial invoices.
SECTION 2. Definition of Terms. — For purposes of these regulations, the following terms shall be taken to mean as follows:
1. The term "receipt(s)" means a written admission or acknowledgment of the fact of payment in money or other settlement between seller and buyer of goods, debtor and creditor, or persons rendering services and client or customers.
2. The term "sales or commercial invoice(s)" shall mean a written account of goods sold or services rendered and the price charged therefor, or a list of goods consigned and the value at which the consignee is to receive them or any other list by whatever name it is known which is used in the ordinary course of business evidencing any transaction, sale and/or transfer of goods and/or services.
SECTION 3. Invoices or Receipts. — Chapter IV of Revenue Regulations V-1, as amended, shall read as follows:
Chapter IV
Receipts or Sales or Commercial Invoices
Persons subject to tax to issue Receipts or Sales or Commercial Invoices; Contents of Registered Receipts or Invoices. All persons subject to an internal revenue tax shall, for each sale or transfer of merchandise or for services rendered valued at five pesos or more, issue duly registered receipts or sales or commercial invoices, prepared at least in duplicate, showing the date of the transaction, quantity, unit cost and description of merchandise or nature of service: Provided, that in the case of sales, receipts or transfers in the amount of one hundred pesos or more, or, regardless of amount, where the sale or transfer is made by producers, manufactures, importers, wholesalers, or where the receipt is issued to cover payment made as rentals, commissions, compensations or fees, the receipts or invoices shall further show the name, business style, if any, and address of the purchaser, customer, or client. The original of each receipt or invoice shall be issued to the purchaser, customer or client at the time the transaction is effected, who, if engaged in business or in the exercise of profession, shall keep and preserve the same in his place of business for a period of five years from the date of the invoice or receipt, the duplicate shall be kept and preserved by the issuer, also in his place of business for a like period: Provided, that persons subject to tax, whose gross sales, earnings or receipts during the last preceding year exceed thirty thousand pesos shall, for each sale or transaction, issue a receipt or an invoice, irrespective of the value of the article sold or service rendered.
The Commissioner of Internal Revenue may, in meritorious cases, exempt any person subject to an internal revenue tax from compliance with the provisions of this section. In any event, market vendors selling exclusively domestic meat, fruits, vegetables, games, poultry, fish and other food products are hereby exempted from the provisions of this section.
The provisions of this section, together with the penal provisions in Presidential Decree No. 1254 shall be posted in a prominent place in the establishment covered by the requirements thereof. (Sec. 216, NIRC of 1977, as amended by P.D. 1457).
SECTION 4. Vouchers for Transactions; Issuance of Receipts or Sales or Commercial Invoices. — Section 14 of Revenue Regulations V-1, as amended, shall read as follows:
Section 14. Source Document of Transactions; Issuance of Receipts or Sales or Commercial Invoices.
a) In General. Persons subject to an internal revenue tax who are required to keep the books of accounts mentioned in Section 321 of the National Internal Revenue Code of 1977, as amended, shall have a voucher for each entry in their books. The voucher may be an invoice, receipt, check or other documents which shall show the details of each transaction.
b) Persons Required to Issue Receipts or Sales or Commercial Invoices:
1) Those whose sales or transfers of merchandise or whose services rendered are valued at five pesos or more;
2.) Those whose sales or transfers of merchandise or whose services rendered are valued at one hundred pesos or more (plus the additional requirement of indicating thereon the name, business style and address of the purchaser, customer or client).
3) Those who receive payment made as rentals, commissions, compensations or fees, regardless of amount received (plus the additional requirement of indicating thereon the name, business style and address of customer or client);
4) Producers, manufacturers, importers, wholesalers, regardless of amount of sale or transfer made (plus the additional requirement of indicating thereon the name, business style and address of customer or client);
5) Those whose gross sales, earnings or receipts during the last preceding year exceed thirty thousand pesos, irrespective of the amount involved.
c) Persons Not Required to Issue Receipts, Sales or Commercial Invoices:
1) Those whose sales or transfers of merchandise or for services rendered are valued below five pesos, provided, their gross sales, earnings or receipts during the last preceding year do not exceed thirty thousand pesos. (In case the transaction is valued at less than five pesos, a receipt or invoice need not be issued, but unless it is issued, the transaction must be recorded immediately at the time it is effected in a registered petty cash book, the entries in which shall be summarized at the end of the day and the total thereof transferred on the same day to a sales receipt or invoice clearly indicating thereon that the same is the "petty sales for the day.");
2) Those exempted by the Commissioner of Internal Revenue;
3) Market vendors selling exclusively domestic meat, fruits, vegetables, games, poultry, fish and other food products.
d) Documentation and Substantiation of Transactions. — Every purchase or expenditure by a taxpayer subject to these regulations shall be duly supported by a receipt or invoice issued by the vendor or the person rendering the service in accordance with Section 15 of these regulations, should any of the receipts or invoices lack any of the information required to be indicated therein, such receipts or invoices shall be deemed inadequate for documentation or substantiation of the particular transaction. However, in case no receipt or invoice was issued by the vendor or the person rendering the service for the reason that he is exempt from the requirement to issue the same, the purchaser, customer or client may require the vendor or the person rendering the service to sign a purchase or expense voucher indicating his name, address and business style, if any; and shall show the name and address of the purchaser, customer or client, date when the transaction was effected, quantity, unit cost and description of transaction, merchandise or nature of the service rendered, as the case may be.
SECTION 5. Form and Manner of Issuance of Receipts or Sales or Commercial Invoices. — Section 15 of Revenue Regulations V-1, as amended, shall read as follows:
Section 15. Form, Time and Manner of Issuance of Receipts or Sales or Commercial Invoices.
a) Form. — Receipts or Sales or Commercial Invoices must be serially numbered and made at least in duplicate. They may have as many duplicate copies as may be necessary for the purposes of the taxpayer using the same, but the duplicate copies shall bear the same serial number as the original. They shall be bound in 50's to 100's per book or pad and shall show among other things the name, business style, if any, taxpayer account number and business address of the person or entity using the same; and shall further bear on the original and every copy thereof, on the lower left hand corner the name of the printer and the number of his authority to print. They shall contain such spaces or lines and columns, as may be necessary and appropriate for the business of the taxpayer concerned.
b) Time and Manner of Issuance. — Where the transaction is required to be covered by a receipt or invoice, the same shall be prepared at least in duplicate and issued at the time the transaction is effected, showing the date of the transaction, quantity, unit cost, description of the transaction, merchandise or nature of the service rendered for which payment is received, e.g. rentals, commissions, fees, etc., and total value of the transaction.
SECTION 6. Repealing Clause. — All rules and regulations contrary to or inconsistent herewith are hereby repealed or amended accordingly.
SECTION 7. Effectivity. — These regulations shall take effect thirty days after its publication in the Official Gazette.
(SGD.) PEDRO M. ALMANZOR
Acting Minister of Finance
RECOMMENDED BY:
(SGD.) EFREN I. PLANA
Acting Commissioner of Internal Revenue
TAN: P4519-F2828-A-8
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