The requirements on invoicing provided under the Revenue Regulations (RR) 7-2024, as amended by RR 11-2024, are further clarified on this Revenue Memorandum Circular (RMC), providing a sample of converted Official Receipt to Invoice.
The Bureau of Internal Revenue released a list of descriptive names of invoices for different transactions. Is it required to have different invoices for those transactions or to have only one invoice for all types of transactions?
To convert the Billing Statements into Billing Invoice, the term “Billing Statement” must be struck through [e.g. Billing Statement] and stamped with the term “Billing Invoice”. Also, there are additional mandatory information that must be reflected on the face of an invoice, and the following information may be stamped if not originally included in the documents, upon conversion:
- Name of the taxpayer
- Tax Identification Number (TIN)
- Amount of sales
- VAT amount
- Quantity
- Unit Cost
- Description of the merchandise or goods / nature of services
For VAT-registered businesses, if the customer purchased less than P500, does the seller need to issue an invoice even if the buyer did not request for one?
Yes, VAT-Registered taxpayers must issue an invoice/s for every sale or barter and regardless of the amount. The P500 threshold on issuance of invoice is applicable only to Non-VAT Registered Taxpayers. However, in case the buyer of a Non-VAT Registered requests for an invoice, the seller must issue an invoice regardless of the amount.
Can an invoice be issued as a proof of sale and as acknowledgement of payment? In the case of an unpaid transaction, does the seller still have to issue another invoice for subsequent collection?
Yes, the seller can issue an invoice for proof of sale and acknowledgement of payment for the same transaction. However, if the transaction is not yet paid, the seller cannot issue another invoice for this. Further, to provide proof of collection, the seller may issue Official Receipts, Payment Receipt, or Acknowledgement Receipt.
For expert advice and further clarification on invoicing requirements, CONSULT ACG today!