A. Invoicing and Accounting Requirements for VAT-Registered Persons under Section 113 of the Tax Code
Invoicing Requirements:
VAT-registered persons must issue a VAT invoice for every sale, barter, or exchange of goods or properties, and a VAT official receipt for every lease of goods or properties and for services rendered.
Invoices must be serially numbered and reflect the taxpayer's Tax Identification Number (TIN) and the word "VAT".
Information Contained in a VAT Invoice:
The invoice must include the name, address, and TIN of the buyer, if the buyer is a VAT-registered person.
A brief description of the goods or services, the quantity, unit cost, and total cost.
The amount of VAT shown as a separate item.
Accounting Requirements:
VAT-registered persons must keep records of all issued invoices and receipts.
These records should be maintained in a manner that facilitates the easy ascertainment of the person’s VAT liability.
Consequence of Issuing Erroneous VAT Invoice:
Any invoice that does not comply with the requirements will be considered as not duly issued.
This could lead to the disallowance of input tax claims and potential penalties.
B. Preservation of Books of Accounts and Other Accounting Records under Section 235 of the Tax Code
Preservation:
Books of accounts and other accounting records must be preserved for ten years from the last entry.
Examination and Inspection:
The BIR has the authority to examine and inspect these records as part of its regulatory and enforcement activities.
C. Registration Requirements under Section 236 of the Tax Code
Manner and Time of Registration:
All persons subject to any internal revenue tax must register with the BIR within 30 days from the start of business.
Place of Registration:
Registration should be done at the Revenue District Office (RDO) having jurisdiction over the principal place of business
.
Registration of Business Taxpayers:
Includes individuals, partnerships, corporations, cooperatives, and associations
.
Registration of Business Name:
The business name must be registered with the appropriate government agency (e.g., DTI for sole proprietors, SEC for corporations).
BIR Business Registration Date:
The date of registration with the BIR is considered the official date of registration for tax purposes.
Issuance of Certificate of Registration to Head Office, Branch, and Facility:
A Certificate of Registration will be issued to the main office, including branches and facilities.
Posting of Certificate of Registration:
The Certificate of Registration must be conspicuously posted in the place of business.
Posting of Proof of Registration on Online Websites, E-Commerce, or E-Marketplace Seller/Merchant’s Page and other Platforms:
For online businesses, proof of registration must be posted on their website or e-commerce platform.
Registration of Each Type of Internal Revenue Tax:
Separate registration is required for each type of tax the business is liable for (e.g., VAT, income tax).
Cancellation of Registration:
Procedures for the cancellation of registration due to cessation of business or other reasons.
Transfer of Registration:
Guidelines for transferring registration in case of a change in business location.
Unlawful Pursuit of Business:
Engaging in business without proper registration is unlawful and subject to penalties.
D. Issuance of Invoices under Section 237 of the Tax Code
Issuance:
Invoices must be issued for each sale or transaction.
Information Contained in the Invoice:
Must include necessary details such as the name, address, TIN of the buyer and seller, description of goods/services, etc.
Tickets and Other Similar Forms as Invoice:
Tickets and similar forms can be considered as invoices if they contain the required information.
E. Printing of Invoices under Section 238 of the Tax Code
Guidelines for the authorized printing of invoices, ensuring they meet the regulatory requirements.
F. Transitory Provisions
Certificate of Registration Reflecting the Registration Fee:
Transitional provisions for the issuance of certificates reflecting the registration fee.
Unused Official Receipts:
Procedures for dealing with unused official receipts during the transition.
Cash Register Machines (CRM) and Point-of-Sales (POS) Machines and E-receipting or Electronic Invoicing Software:
Guidelines on the use and transition to CRM, POS machines, and electronic invoicing software.
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