Read the whole revenue regulation here: rr-no.7–2024
The Bureau of Internal Revenue (BIR) has released a series of Revenue Regulations (RR) for the implementation of Republic Act No. 11976, otherwise known as the Ease of Paying Taxes Act. This THRIVE Tax Bulletin discusses the transitory provisions on use of invoices in replacement of official receipts covered under RRs No. 3-2024 and 7-2024, as posted by the BIR on April 12, 2024.
- The EOPT Act mandates a single document for both sales of goods and services. Hence, all references to Sales/Commercial Invoices or Official Receipts shall now be referred to as “INVOICE”.
- Under Section 8 of RR No. 7-2024, taxpayers with unused Official Receipts have two options in transitioning to the new invoice.
- OPTION 1 – Taxpayers may continue to use the remaining Official Receipts as supplementary document until fully consumed, provided that the phrase “THIS DOCUMENT IS NOT VALID FOR CLAIM OF INPUT TAX” is stamped on the face of the document. The Official Receipt, along with other equivalent documents such as Collection Receipt, Acknowledgement Receipt, and Payment Receipt are all the same, and will serve as proof of payment that cash has been received.
- OPTION 2 – On the other hand, taxpayers may convert and use the remaining Official Receipts as Invoice. This means that taxpayers shall be allowed to strikethrough the word “Official Receipt” on the face of the manual and loose leaf printed receipt and stamp “Invoice”, “Cash Invoice”, “Charge Invoice”, “Billing Invoice, “Service Invoice”, or any name describing the transaction, and to be issued as primary invoice to its buyer until December 31, 2024. These documents shall be valid for claim of input tax by the buyer for the period issued from January 22 to December 31, 2024.
- The stamping of official receipts as invoices by the taxpayers does not require approval from any Revenue District Office/LT Offices/LT Divisions.
- All unused official receipts to be converted as Invoice shall be reported by submitting an inventory of unused official receipts, indicating the number of booklets and corresponding serial numbers within thirty (30) days upon effectivity of these regulations, to the RDO/LT Office/LT Division.
- Meanwhile, taxpayers using CRM/POS/E-receipting may change the word “Official Receipt” to “Invoice”, “Cash Invoice”, “Charge Invoice”, “Billing Invoice, “Service Invoice”, or any name describing the transaction, without the need to notify the Revenue District Office having jurisdiction over the taxpayer. Further, the serial number of the renamed Invoice shall start by continuing the last series of the previously approved Official Receipt and shall submit notice, indicating the starting serial number of the converted invoice to the RDO/LT Office/LT Division where the machines are registered.
- Lastly, taxpayers using duly registered Computerized Accounting System (CAS), or Computerized Books of Accounts (CBA) would need to revisit their systems to comply with the provisions of the EOPT Act. Since the system reconfiguration will have a direct effect on the financial aspect, it shall be considered as major enhancement which will require taxpayers to update their system registration following the existing policies and procedures of filing a new application. The reconfiguration shall be undertaken on or before June 30, 2024; any official receipts issued by CAS- or CBA-registered taxpayers for sale of service after such date will be considered a failure to issue or non-issuance of invoice. Any extension of the reconfiguration of CAS or CBA beyond June 30, 2024, will need approval from the Regional Director or Assistant Commissioner of the Large Taxpayer Service, which shall not be longer than six (6) months from the effectivity of these regulations.
- These regulations shall take effect fifteen (15) days following its publication in the Official Gazette or the BIR official website, whichever is applicable. The BIR website posted these regulations on April 12, 2024.Please be guided accordingly.
