Steps to Obtain a BIR-Approved Sales Invoices

Obtaining a Bureau of Internal Revenue (BIR)-approved sales invoice in the Philippines is essential for ensuring compliance with local tax regulations. Here is a detailed guide on how to obtain a BIR-approved sales invoice:

Steps to Obtain a BIR-Approved Sales Invoice

1. Register Your Business with the BIR:
   • Before you can apply for a BIR-approved sales invoice, ensure your business is properly registered with the BIR. You will need a Taxpayer Identification Number (TIN) and a Certificate of Registration (BIR Form 2303).
2. Apply for an Authority to Print (ATP):
   • The Authority to Print (ATP) is a document issued by the BIR that allows businesses to print official receipts and sales invoices. You can apply for an ATP using BIR Form 1906.
3. Complete BIR Form 1906:
   • Fill out BIR Form 1906 with the necessary details:
     • Taxpayer’s Name
     • Business Name/Style
     • TIN and Branch Code
     • Business Address
     • Type of Form to be Printed (Sales Invoice, Official Receipt, etc.)
     • Quantity to be Printed
     • Name and Address of the Accredited Printer
4. Attach Required Documents:
   • Submit the following documents along with BIR Form 1906:
     • Photocopy of the Certificate of Registration (BIR Form 2303)
     • Sample Layout of the Sales Invoice
     • Job Order from the Accredited Printer
5. Submit the Application:
   • Submit the completed BIR Form 1906 and the required documents to the Revenue District Office (RDO) where your business is registered.
6. Wait for the Approval:
   • The BIR will review your application and the sample layout of your sales invoice. Once approved, the BIR will issue the Authority to Print (ATP) certificate.
7. Engage an Accredited Printer:
   • With the ATP certificate, you can now engage a BIR-accredited printer to print your sales invoices. Ensure that the printer follows the approved format and includes all the required information.
8. Receive the Printed Sales Invoices:
   • Once printed, the accredited printer will deliver your sales invoices. Make sure to verify that the invoices are printed according to the approved format and contain the necessary details.

Key Details to Include on a BIR-Approved Sales Invoice

Under Revenue Memorandum Order No. 12-2013, a BIR-approved sales invoice must include the following details:

• Taxpayer’s Registered Name and Business Name/Style (if any)
• A statement that the taxpayer is VAT or Non-VAT registered, followed by the TIN and 4-digit Branch Code
• Business Address
• Date of Transaction
• Serial Number of the sales invoice
• Name, Address, and TIN of the Buyer
• Description of the Items/Goods
• Quantity of the Items/Goods
• Unit Cost
• Total Cost
• VAT Amount (if the transaction is subject to VAT)
• Breakdown of Sales (VATable Sales, VAT Amount, Zero-rated Sales, and VAT Exempt Sales if applicable)
• For Non-VAT Sales Invoices, the phrase “THIS DOCUMENT IS NOT VALID FOR CLAIM OF INPUT TAX” in bold letters
• For VAT-Exempt Transactions, clearly indicate “EXEMPT”
• Details of the Accredited Printer (Name, TIN, Accreditation Number, and Address)

Compliance and Record-Keeping

• Ensure that all sales invoices are accurately and properly filled out before issuing them to customers.
• Keep copies of all issued sales invoices for at least three years as required by Section 237 of the National Internal Revenue Code.
• Regularly check for updates or changes in BIR regulations regarding sales invoices to maintain compliance.

By following these steps, businesses in the Philippines can obtain and use BIR-approved sales invoices, ensuring compliance with tax laws and facilitating smooth business operations.