RMC No. 77-2024 — Clarification on the invoicing requirements provided under Revenue Regulations (RR) No. 7-2024, as amended by RR No. 11-2024 Digest | Full Text | Annex A1-B6 | Annex C-D

C 1 TAA REVENUE

1 VNA--AYY IViS{ON REPUBLIC OF THE PHILIPPINES

BUREAU OF INTERNAL REVENUE DEPARTMENT OF FINANCE JUL 11 2024

t IN ADMIN UNIT 18ti

July 11, 2024

REVENUE MEMORANDUM CIRCULAR NO. 0 7 7 - 2 0 2 4

SUBJECT Clarification on the Invoicing Requirements Provided Under Revenue Regulations (RR) No. 7-2024, as Amended by RR No. 11-2024

TO : All Business Taxpayers, Internal Revenue Officials, Employees and Others Concerned

(EOPT) Act", was signed into law and took effect on January 22, 2024, after its publication in the Official Gazette. One of the key reforms introduced by the EOPT Act is the change in the use of Sales Invoices and Official Receipts for tax purposes. Sections 113 and 237 of Republic Act (RA) No. 11976, otherwise known as the "Ease of Paying Taxes

the said Act provide:

"Sec. 113. Invoicing and Accounting Requirements for Value-Added Tax (VAT) Registered Persons.

(A) Invoicing Requirement. issue a VAT Invoice for every sale, barter, exchange, or lease of goods or properties and for every sale, barter or exchange of A VAT-registered person shall

services. xxx.

"Sec. 237. Issuance of Sales or Commercial Invoices -

(A) Issuance. - All persons subject to an internal revenue tax

for services rendered valued at five hundred pesos (PhP500.00) or more, issue duly registered sale or commercial Invoices showing the name, Taxpayer Identification Number (TIN), date of transaction, quantity, unit cost and description of merchandise or nature of service: xxx." shall, at the point of each sale and transfer of merchandise or

sales of goods and services. In view of this, this Circular is being issued to clarify the invoicing requirements under the EOPT Act. the use and printing of Sales Invoice and to Based on the foregoing provisions, an "Invoice" is now required to be issued for both

BIR personnel. provide a sample format of Invoices to be used as reference by taxpayers and concerned

A1 Q What is the invoicing requirement for a VAT-registered person? A VAT-registered person shall issue a duly registered VAT Invoice for every sale of services regardless of the amount of the transaction. barter, exchange or lease of goods or properties, and for every sale, barter or exchange

A2 Q2 A Non-VAT-registered person shall issue a duly registered Non-VAT Invoice for every What is the invoicing requirement for a Non-VAT registered person? sale, barter, exchange or lease of goods or properties, and for every sale, barter or a buyer requests for an Invoice, the seller must issue the same regardless of the exchange of services valued at Five Hundred Pesos (Php 500.00) or more. However, if amount of transaction.

A3 Q3 Does a seller need to issue an Invoice if the sale amount of a single transaction is The following rules shall be observed: Iess than P500.00?

a. For VAT-registered sellers, the issuance of VAT Invoice for each sale transaction is required, regardless of the amount of transaction.

b. For Non-VAT registered sellers, an invoice shail be issued in the following cases:

i. the amount of a single sale transaction is more than P500.00:

ii. the buyer requested/demanded an invoice, regardless of the amount of

sales transaction;

iii. If at the end of the day, the aggregate amount of all sales transactions amounting to less than P500.00 exceeded the P500.00 threshold.

A4 Q4 When will the P500.00 threshold for issuing an Invoice be adjusted? The P500.00 amount shall be adjusted to its present value every three (3) years, beginning January 22, 2024 or the effectivity of the EOPT Act, using the Consumer Price Index, as published by the Philippine Statistics Authority.

Q5 :The seller is engaged in sale of service. After the effectivity of the EOPT Act, does the seller need to apply for a new Authority to Print (ATP) invoice and issue an Invoice? A5 : YES, since the Invoice is now the primary evidence for recording sales of goods and services. For this purpose, an ATP must be secured before a seller can have ar Accredited Printer print an Invoice. However, during the transitory period, sellers may following the options in Question No. 10 and Question No. 21 hereof. opt to use their remaining unused Official Receipts by converting them into Invoice

A6 Q6 What information must be contained in a VAT Invoice and Non-VAT Invoice? The Invoice shall contain the information provided under Section 6(B) of Revenue Regulations No. 7-2024.

Q A Is it necessary to indicate the business style in the Invoice? store name identification or branding purposes. No. Business Style of the buyer or seller is not required to be indicated in the Invoice However, the seller may indicate its business name in the Invoice for trade name or

Q8 While the EOPT Act eliminates the Official Receipts as evidence of sales of goods

A8 Upon effectivity of RR No. 7-2024, Official Receipt is treated as a supplementary Official Receipts: document. Taxpayers, however have the following options on the remaining unused and services for tax purposes, can sellers still validly use and issue their remaining unused booklets of Official Receipts?

Option 1: Continue the use of remaining Official Receipts as supplementary document;

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requirements in Question No. 10 and Question No. 21 hereof. Option 2: Convert and use the remaining Official Receipts as Invoice following the BUREAU OF INTERNALREVEAUE RECORDS MANAGEME T OVISCN

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2 ADNunift IME 3:1000

Q9 A9 If the seller wants to use his/herlits remaining unused booklets of Official All unused or unissued Official Receipts may still be used as supplementary document Receipts as supplementary documents, are there any requirements? must be stamped with the phrase "THIS DOCUMENT IS NOT VALiD FOR CLAIM OF to applicable penalty. until they are fully consumed, provided that each page of the unused Official Receipt INPUT TAX." Failure to do so will not make the document a valid replacement for the Invoice; hence, seller may be considered as not issuing an Invoice and may be subject

A10 Q10 Invoice" or "Credit Invoice" or Service Invoice" or [e.g. Billing Statement] "Billing to its buyer/purchaser. If the seller wants to convert and use his/her/its remaining unused booklets of out [e.g. Official Receipt] and shall be stamped "Invoice" or "Cash Invoice" or "Charge Invoice", or any name describing the transaction for which such Invoice shall be issued Charges into Billing invoice, until they are fully consumed, provided that, the word Billing Invoice" on the face of the manual and loose leaf printed receipt shall be stricken "Official Receipt/Billing Statement/Statement of Account/Statement of Charges intol Official Receipts as Invoice or Billing Statement/Statement of Account/Statement of Charges into Billing Invoice, are there any requirements? Taxpayers may.convert the remaining unused booklets of old Official Receipts and use the same as Invoice, or the Billing Statement/Statement of Account/Statement of

as primary invoice is an option given to taxpayers, provided that the converted Invoice/Billing Invoice shall contain the required information provided under RR No. 7- 2024, as amended, including details like quantity, unit cost and description or stamped on the document if not originally included, upon conversion. Since the Official Receipt/Billing Statement/Statement of Account/Statement of Charges will serve as supplementary document, the conversion of such to Invoice/Billing Invoice nature of service pursuant to Sec. 237 of the Tax Code. Missing information may be

Q11 : The seller is using the Official Receipt format below, can he/shelit convert this Official Receipt to an Invoice?

Sample Only: Conversion of Official Receipt Inemen ttients QTY SS:V Hiieunoet 3 a UNIt COSt: O VAT Reg. TIN: 144-424-024-0000 oFfigial Regeipt ABC CorPorAtion -76 Ditiman. Quezon-City -. INVOICE "Annex C.1.2

Tt } D'st Less:Withnsi&ng Tax r De -Lm.pt Saies ToaI Ssi s Le5: SC/PHD S VATabie Sale Tt+e Rited Sai f's VAI ar ount Fom d pacnent. Te UNIT COST: Q and address at business style of Sr. Citizen TIN OSCA/PWD ID No. G Received from ) In partial/full (payment for Signature Cashier Authorized Representative NATURE OF SERVICE DATE with TN engaged in the the sum of pesos description or nuture of service "Paymen for" may refer to

Cash Che ck

BERTHA PRINTING SERVICES, INC. Bgy. 789, Quezon Clty 10 Bkits (3x) 1001-1500 BIR Authority to Print No. 3AU000805222 Date Issued 07-30-13 : Printer's Accreditation No. P08051200 Date Issued 08-01-12 No. 1001

BUREAU OF INTERNALREVENUE Ti 123-456-789-0000 C RECORDS MANAGHMENT DIVISION

JUL 11 2U24

3 IAahUt [ML T :oo

A11 :Yes, the seller may convert the above Official Receipt (sample format in Annex C.1.2 or service which are required under Section 237 of the Tax Code, as amended. The C.2 of Revenue Memorandum Order No. 12-2013) to an Invoice, provided that ail the Receipt including the quantity, unit cost and description of goods sold or nature of missing information may be stamped on the document if not originally included, upon required information under Section 6(B) of RR No. 7-2024 are shown in the Official

conversion.

Q12 A12 Can the seller use a Cash Invoice, Charge Invoice, Credit Invoice, Service Invoice that in alt such cases, the word "Invoice' is prominently printed or Billing Invoice and apply for its Authority to Print? Yes. Taxpayers may use any descriptive name for its Invoice to describe the nature of the transaction/s with the buyer/purchaser, such as "Invoice", Invoice", "Charge Invoice", "Credit Invoice", "Billing Invoice", "Service Invoice"; Provided, "Sales Invoice" "Cash

e.g.

INVOICE SALES

SANDBOX NYeoN tte,t EEYOT C INVOICEE INVOICE * SERVICE

I ,-,. Yot- h S{hHO CAYLRCA INVOICe

.-

Q13 : When does the seller use Invoice, Cash Invoice, Credit Invoice, Billing Invoice or A13 reflect its specific sales transactions. To clearly identify the type of sale, the selier may Sales transactions are typically either cash (paid) or on credit (not yet paid) and an Invoice should be issued in both cases. Taxpayer may label or name its Invoice to use different descriptive names for the Invoice to reflect the nature of transactions, such Service Invoice? as:

Miscellaneous Invoice -- Issued for other income received by the seller Cash Invoice - Used for cash sales or specifically for sales where immediate Charge/Credit Invoice -- Issued for sales on credit, where payment is expected Service Invoice -- Used for transactions where a service is provided Billing Invoice - A document to bill charges similar to Charge Invoice and contains other information similar to a statement of account, billing statement, summarizing charges for a specific transaction Commercial Invoice -- A document used by exporter for export transactions Invoice -- Issued for both sales of goods or services rendered Sales Invoice -- General purpose Invoice for any sales transaction payment is received at a later date

Starting April 27, 2024, sellers of goods and services shall issue any of the above invoices for their transactions. BUREAU DE INTERNALRFVENIE DS MANAGEMEN DIVISION

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A14 Q14 : In the case of utility companies and other recurring service providers in which a the quantity, unit cost and description or nature of service pursuant to Sec. 237 of the customer is being billed, when should an Invoice be issued for the services Service providers who billed their customers shall now issue a Billing Invoice upon contain the required information provided under RR No. 7-2024, as amended, including Tax Code. rendered? billing instead of Billing Statement or Statement of Account. The Billing Invoice should

A15 Q15 Invoice at the time of sale and another Invoice to acknowiedge receipt of The seller is engaged in the sales of goods or services, can he/shelit issue No. Sellers cannot issue an invoice upon receipt of payment. However, an Official Receipt or Payment Receipt or Acknowledgement Receipt may be issued upon subsequent collection or receipt of payment. payment?

Illustration:

Incorrect:

Receipt of Payment/ Sale Cotlection of Services Receivable Action of Goods/ #00001 #00002 Invoice Series 27-April-2024 05-May-2024 Transaction Date of Invoice issued for sale. but no payment received (This is incorrect.) when payment is received for the previous sale Yet. Separate invoice issued Remarks

Correct:

Option 1: Receipt of Payment Sale of Goods/ Services and Action #00001 Invoice Series 27-April-2024 Transaction Date of the sale and the receipt of payment. Single Invoice for-both Remarks

Option 2: Issue a supplementary document upon collection of payment/receivable: Services Receipt of Payment/ Sale of Goods/ Collection of Receivable Action Invoice #00001 PR #00001 Series 05-May-2024 27-April-2024 Transaction Date of but no payment Invoice issued for saie. received yet. document [e.g. Payment Receipt (PR)] Supplementary Remarks

issued when payment is received for the previous sale

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Q16 A16 : Can invoices be used for both sales and collections of payment/receivable for the same transaction? Yes. An Invoice is a document evidencing sale of goods or service. However,

such Invoice may contain an information acknowledging the receipt of payment for the said sales transaction.

Sample Invoice:

M e

SANDBOX GAC EOR INVOICE AT 12.456.799.000

TRANSACtiON TYPE I SOLRIO Regislered Name CASH SALES CHAR GE SALES JUAN DELA CRUZ Date 03-June-2024 Gt DATE OF SERVICE TRANSACTION DATE 1 RENDERED AND DATE OF PAYMENT

T 999-999-999-00000 Business Address 45 ACACIA ST. AGHAM DILIMAN Q.C

Payment for Service Lanor Part #869 Wire #759 tem Descrotion Nature of Service Quan tity 3 Unit Cost Puice 2.500 00 300 00 500 00 Amount P2.500 00 GO0 00 500 00

""Zeto-Rated Sales VAT-Exempl Sales VATable Sales G 3.214 28 3851 [SC/PWDNAAC/MOVISP] Amount Net of VAT TotaT Sales VAT tOC ss Oisce Less ve P3,600 00]

Add VAT

PAYMENT ALREADY MADE Received the iat TOTAL AMOUNT (DUE) Less Writhholding Ta P3.600.0o

SCIPWOINAAC!MOV SC/PWDINAAC/MOVi Solo Parent iD No Signalure EPeit Tous PeE eaF me -224-00 BE S FE U53 5350C 06r-TS25

A17 Q17 Invoice or Sales Invoice and Service Invoice? Can the seller use two types or two sets of Invoice? E.g. Cash Invoice and Charge transactions that will be issued such Invoice/s. Taxpayers have the option which Invoice/s may be used depending upon the

E.g. a. Invoice/Sales Invoice issued for cash and/or credit sales b. Cash Invoice issued for cash sales and Credit/Charge Invoice issued for sales

on account/credit sales C. Invoice/Sales Invoice for sales of goods and Service Invoice for sales of

service d Sales Invoice for primary sales transaction and Miscellaneous Invoice for other

e. Invoice/Billing Invoice issued to bill customers. income

such choice should consider the transactions that will be issued said Invoice/s. Taxpayers may have its own choice of using more than one type of Invoice. However.

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A18 Q18 For taxpayers previously using Official Receipt, what starting serial number shall be used when applying for a new Authority to Print Invoices? Taxpayers shifting from Official Receipt to Sales Invoice or its equivalent Invoice replacement shall apply for a new ATP Invoice.

have a separate set of serial numbers starting from one (1) (e.g. 0000001) or any If the taxpayer is using different types of invoices, each type or name of Invoice shall number (e.g. 5000001) or taxpayer may add prefix or suffix to make such number distinct.

e.g.ATP No.XXXXXXXXX Invoice Description 0000001 Starting Seriai No. Ending Serial No. 0005000

Service Invoice Cash Invoice Charge Invoice Sales Invoice 5000001 CH0000001 0000001 CA0000001 5005000 0005000 CA0005000 CH0005000

For those opting to continue using Official Receipt as suppiementary document, it shall continue the last approved serial number of its Official Receipt when applying for subsequent ATP for Official Receipt as supplementary document.

A19 Q19 : The seller is issuing an Official Receipt using Cash Register Machine (CRM) and Taxpayers using CRM/POS/e-Receipting/e-Invoicing systems can now replace "Official Point-of-Sales (POS) Machine and e-Receipting or Electronic Invoicing Software the Revenue District Office. These terms may include: Does he/she/it need to reset the series number when he/she/it shift from Official Receipt to Invoice? Receipt" with a more descriptive term for their Invoices without the need for approval of

Invoice

Charge Invoice Credit Invoice Service Invoice Cash Invoice Any other term that accurately describes the transaction Billing Invoice

Provided, that the serial number of the renamed Invoice shall start by continuing the

both offices. the start date when such serial number was/will be issued. Such Notice shall be Head Office RDO and retain the duplicate copy, for reference and audit purposes of series from the last issued Official Receipt. The seller shall submit a Notice in two (2) copies (both original), indicating the starting serial number of the converted Invoice and submitted to the RDO/LT Office/LT Division where the sales machines are registered The receiving Branch RDO shall transmit the original copy of the said Notice to the

[See illustration on the next page]

)RECORDS MANAGRWENT VGCN BUREAU OFINTERNALREVENUE

$ S

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Illustration:

Before April 27, 2024/Before Renaming or Enhancement Starting April 27, 2024 After Renaming or Enhancement

OR#: 0005000 Official Receipt XXX INVOICE INV#: 0005001 XXX

XXX XXX Amt Due XXX XXX Amt Due

VATable Sale VAT Amount VAT Exempt Sale Zero-Rated Sale VAT Amount VATable Sale VAT Exempt Sale Zero-Rated Sale

M XXX

Receipt issued is OR# 0005000. The last serial number of Official Invoice After renaming to Invoice, the starting serial number of the first after conversion Is

INV# 0005001.

Q20: Is prior approval from the Revenue District Office (RDO)/ Large Taxpayers (LT)

A20 remaining unused Officiai Receipts? (ATP) before full consumption of the converted Official Receipts. Offices/LT Divisions required in the stamping of the word 'Invoice' in the The stamping of Official Receipts as Invoices by taxpayers does not require approval from any RDO/LT Office/LT Division but it must comply with Section 8(2.3) of RR No. 7- 2o24. However, the reporting of unused Official Receipts to be converted to Invoice is required. The taxpayer should obtain newly-printed invoices with an Authority to Print

A21 Q21 Yes. All unused manual and loose ieaf Official Receipts to be converted as Invoice shall be reported to the BIR by submitting an Inventory Report (suggested format - Annex C) the serial numbers of the unused Official Receipts converted to Invoice. Do taxpayers need to submit any reports regarding the use of remaining unused Official Receipts and those converted Invoices issued by CRM/POS machines/E- receipting [CAS/CBA with e-receipting or Accounting Records (AR)] or E- Invoicing software that previously used Official Receipts? of unused Official Receipts (in duplicate copies), indicating the number of booklets and

ITi U DME ,... : JUL 11 2024 X E E Office or Branch Office is registered, or through the Taxpayer Registration Related Application (TRRA) Portal via email of the Compliance Section, on the following The said inventory Report (Annex C) and Notice on the Renaming of Officiai Receipt to Invoice (Annex D) shall be submitted to the RDO/LT Office/LT Division where the Head deadlines: Taxpayers using CRM/POS machines/E-receipting (CAS/CBA with e-receipting) or E- Invoicing software that renamed the Official Receipts being issued to Invoice shall be the converted Invoice and the start date when such serial number was/will be issued. reported by submitting a Notice on the Renaming of Machine/System Generated Official Receipt to Invoice (suggested format - Annex D) indicating the starting serial number of

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Annex D - Notice on the Renaming (for CRM/POS/CAS/CBA with AR) Annex C - Inventory Report (for Manual/Loose leaf) of Official Receipt to Invoice Annex within thirty (30) days from the completion of until July 31, 2024 on December 31, 2024, whichever comes first machine/system reconfiguration/enhancement or Deadtine of Submission

The receiving Branch RDO shall transmit the original copy to the Head Office RDO and retain the duplicate copy, for reference and audit purposes of both offices.

No. 12-2013 or Letter Notice prior to the publication date of this Circular on the BIR Taxpayers who have already submitted the inventory report using Annex D of RMO

official website are no longer required to resubmit the inventory report using the format outlined in Annex C or D of this Circular.

A22 Q22: Yes. The taxpayer may submit the inventory Report (Annex E) and Notice on the Can I submit the Inventory Report (Annex C) or Notice on the Renaming of Official Receipt to Invoice (Annex D) of all branches to the RDO where the Head the taxpayer's Head Office is registered. The RDO of the Head Office shall transmit the copy of the respective branches to the concerned RDO. Office is registered? Renaming of Official Receipt to Invoice (Annex F) of all its branches, to the RDO where

However, if taxpayer opted to submit Inventory Reports and/or Notices of other branches in a particular branch RDO, the taxpayer shall use the TRRA Portal to submit said reports and/or notices of all other branches.

Q23 : I am using a Computerized Accounting System (CAS) or Computerized Books of A23: To provide ample time in enhancing the system, adjustment shall be undertaken on or Accounts (CBA) with Accounting Records. Until when can I enhance the system?

before December 31, 2024. Any extension due to enhancements of the system must be approved by the concerned Regional Director or Assistant Commissioner of the 31, 2024. Large Taxpayers Service, which shall not be longer than six (6) months from December

JUL. 11 2024 A24 Q24: What are the requirements and procedures in applying for an extension to Director or Assistant Commissioner of the Large Taxpayers Service, by submitting a contact details of the contact person. enhance the system? concerned RDO/LT Office/LT Division through the Compliance Section/concerned LT Office/Division, where they are registered, for approval of the concerned Regional Letter Request before December 31, 2024 stating the reason or justification for the request for extension, the target date of completion of enhancement, email address and Taxpayers reguesting for an extension to enhance their system shall notify the

L by the Regional Director or Assistant Commissioner. The Regional Director or Assistant The RDO/LT Office/LT Division shall act on the request within three (3) working days from receipt of the letter from the taxpayer and recommend for its approval/disapproval Commissioner shall act on the request within three (3) working days from receipt of the recommendation of the RDO.

A25 Q25 : A VAT-registered person with mixed transactions may issue a single or separate products subiect to VAT, Zero-Rated and VAT-Exempt. Can he/she/it issue a The seller is a VAT-registered with mixed transactions engaged in sale of single Invoice? How should the VAT be presented in the Invoice?

Invoice for its Vatable, VAT-Exempt, and Zero-Rated saies.

Should the said seller opt to have only one Invoice, the VAT amount and sales amount

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the corresponding amount for each type of sale should be indicated in the Invoice. must be broken down as to Vatable Sales, VAT-Exempt Sales, Zero-Rated Sales and

Sample:

VATable Sales VAT P200,000.00 24.000.00

Zero-Rated Sales VAT-Exempt Sales 26.000.00 50.000.00

"VAT-Exempt Sale" or "Zero-Rated Sale" shall be written or prominently printed on each Provided that if the seller opt to issue separate Invoice for each type of sale, the word Invoice.

Q26 : What are the consequences of issuing an Official Receipt (whether stamped with A26 The issuance of such "Official Receipt" for every sale of goods or services after the prescribed period shall not be considered as evidence of sales of goods or services and to Section 264(a) of the Tax Code. imprisonment for not less than two (2) years but not more than four (4) years pursuant Invoicing Software and CAS/CBA with AR for the sale of goods and services after December31, 2024 or reconfiguration/enhancement, whichever comes first, and issuing of Manual and Loose Leaf Official Receipt (unstamped) after April 27, 2024? shall be tantamount to failure to issue or non-issuance of Invoice required under Section Pesos (Php 1,000.00) but not more than Fifty Thousand Pesos (Php 50,000.00) and "Invoice" or unstamped) generated by CRM/POS, E-receipting or Electronic 6(A) of RR No. 7-2024, which is subject to penalty of not iess than One Thousand until the completion of machine/system

Q27 : What is the consequence of issuing an Official Receipt, Payment Receipt, A27 corresponding Invoice or Billing Invoice upon sale of goods or services? services and shall be tantamount to failure to issue or non-issuance of Invoice required (Php 50,000.00) and imprisonment for not less than two (2) years but not more than four (4) years pursuant to Section 264(a) of the Tax Code. Collection Receipt, Billing Statement or Statement of Account only without the Official Receipt, Payment Receipt, Collection Receipt, Billing Statement or Statement of Account under RR No. 7-2024 are suppiementary documents. Hence, when issued upon sale of goods and services, it is not considered as evidence of sales of goods or under Section 6(A) of RR No.7-2024. Such is subject to penalty of not iess than One Thousand Pesos (Php 1,000.00) but not more than Fifty Thousand Pesos

Q28: What are the consequences if a Non-VAT seller erroneously issued a VAT

A28 A seller who is not VAT-registered and issued a VAT Invoice shall be liable to following. in addition to its Percentage Tax liability: Invoice? a. VAT imposed under Section 106 or 108 of the Tax Code, without the benefit of b. A fifty percent (50%) surcharge under Sec. 248(B) of the Tax Code. any input tax credit; and

I TiE JUL 11 2024 FANTENAL REVENH R JREA The VAT amount can be recognized as an input tax credit on the part of the VAT- registered purchaser under Section 110 of the Tax Code, as amended, if all of the following information are present: a. Amount of sales; b VAT amount:

C Registered name and TIN as shown on the Bureau of Internal Revenue (BIR) Date of transaction. Certificate of Registration of both purchaser or buyer and issuer or seller; Description of goods or nature of services; and

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A29 Q29 What is the consequence of a VAT-registered taxpayer issuing an Invoice with incomplete information required under Section 3(B) and Section 6(B) of RR No. 7- of RR No. 7-2024, the seller or issuer shall be liabie for non-compliance with the invoicing reguirements. 2024, as amended? If a VAT-registered seller issues a duly registered VAT Invoice to a VAT-registered buyer/purchaser with lacking information required under Section 3(B) and Section 6(B)

However, the VAT amount shall still be allowed to be used as an input tax credit under Section 110 of the Tax Code, on the part of the VAT-registered purchaser or buyer, except if the lacking information pertains to any of the following b. VAT amount: a. Amount of sales; C. Registered name and TIN as shown on the Bureau of Internal Revenue (BIR)

e. Date of transaction. d Description of goods or nature of services; and Certificate of Registration of both purchaser or buyer and issuer or seller:

Q30 A30 When is the effectivity of the invoicing provisions of RR No. 7-2024? website on April 12, 2024, including Section 8 of RR No. 7-2024 on the transitory 27, 2024, which is fifteen (15) days from the date of publication on the BiR official The invoicing provisions of RR No.7-2024 implementing RA 11796 is effective on Aprit provisions.

Q31: For sale of service with different date of transaction and date of collection of

payment, what document should be issued to evidence the transaction?

A31 Date of Sale Transaction Document to be issued Collection Date Document to be issued

April 27, 2024 April 27,2024 Prior to Prior to 2024 & April 26 between January 22, 2024 April 27, 2024 On or after 2. System-generated Official Receipt 1. invoice and printed Official Receipt converted to

BUREOLOENTCEMAL REVFN ECORRS MAMYEMENT DIVISION I$ F 3. Manual Official 4. Back-up manual whichever comes stamped) until full converted to invoice stamped) until full December 31, 2024 or until completion of reconfiguration/ first Receipt Converted through and consumption Official Receipt (Strike through and enhancement Invoice (Strike Invoice (Strike through and stamped) until

consumption JUl 1

WaDmiN uMit - e AE Hve h.i00m 1

On or after April 27, 2024 Date of Sale Transactior 2. System-generated and printed 3. Manual Official Receipt Converted 4. Back-up manual Official Receipt : Invoice Invoice (Strike through and (Strike through and stamped) unti completion of reconfiguration/ converted to Invoice (Strike through and stamped).until full consumption Official Receipt converted to Invoice December 31, 2024 or until enhancement whichever comes first stamped) untit ful} consumption Document to be issued After April 27, 2024 Collection Date Payment Receipt/ Acknowledgement Receipt Official Receipt/ Collection Receipt/ Document to be issued

A32 Q32: students; and other charitable and administration purposes). What document does a non-stock non-profit educational and/or charitable, For the donations received by the above non-stock non-profit entities, a Acknowledgment Receipt or Donation Receipt, shall be issued upon receipt of and the intended purpose of the donation (e.g. for the construction of the house of the orphans; medical expense of the children with cancer; tuition fee of qualified funds? such donations. It should contain the name of the donor, date of donation, description of the donation (e.g., monetary contribution, in-kind donation, etc.), religious, cultural or social welfare corporation, institution, foundation, trust or philanthropic organization or research institution or organization, Non- Governmental Organization (NGO) issue upon receiving a donation or supplementary document, suchas Non-VAt Official Receipt;

However, should the above non-stock non-profit entities be engaged in any profitable undertaking or business activity, an invoice shall be issued for all business transactions, whether it be sale of goods or services

A33 Q33 Is there a sample format or layout of Invoice? Yes, sample layouts of the manual Invoice are attached as Annexes of this

Circular.

as wide a publicity as possible. All concerned are hereby enjoined to be guided accordingly and to give this Circular

This Circular shall take effect immediately upon posting in the BIR Website.

JMAGI JR Ssioner of Internal Revenue

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JUL 11 2024

Siv HOPM

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