Special InTAX: July 2024 Issue 1 | Volume 1

Bureau of Internal Revenue

The Bureau of Internal Revenue (BIR) issued Revenue Memorandum Circular (RMC) No. 77-2024, dated 11 July 2024, to clarify the invoicing requirements provided under Revenue Regulations (RR) No. 7-2024, as amended by RR No. 11-2024, particularly, on the requirement to issue an “Invoice” for both sales of goods and services. [RGM&Co Note: RR No. 7-2024, as amended by RR No. 11-2024, implemented the amendments introduced by the Ease of Paying Taxes Act (EoPT Law) on registration procedures and invoicing requirements.]

The following are salient points of the RMC: 

• For VAT-registered sellers, the issuance of VAT Invoice for each sale transaction is required, regardless of the amount of transaction. [Q&A No. 1 and 3(a)]
• For Non-VAT registered sellers, a duly registered Non-VAT Invoice shall be issued for single/aggregate daily sale valued at Php500 or more and if a buyer requests for an invoice regardless of the amount of transaction. [Q&A No. 2 and 3(b)]
• The seller of service needs to apply for a new Authority to Print (ATP) Invoice and for this purpose, an ATP must be secured before a seller can have an Accredited Printer print an Invoice. However, during the transitory period, sellers may opt to use their remaining unused Official Receipts (ORs) either as supplementary document following Q&A No. 9 of this RMC or by converting them into Invoice following the requirements in Q&A Nos. 10 and 21 of this RMC. (Q&A Nos. 5 and 8)
• The Invoice shall contain the information provided under Section 6(B) of RR No. 7-2024. The “Business Style” of the buyer or seller is not required to be indicated in the Invoice, but the seller may opt to indicate it for branding purposes. (Q&A No. 6 and 7)
• The approval from any Revenue District Office (RDO)/Large Taxpayers (LT) Office/LT Division is not required for the stamping of ORs as Invoices by taxpayer provided that it must comply with Section 8(2.3) of RR No. 7- 2024. However, the reporting of unused ORs to be converted to Invoice is required. The taxpayer should obtain newly-printed Invoices with an ATP before full consumption of the converted ORs. (Q&A No. 20)
• For unused manual and loose-leaf ORs converted as Invoice, any missing information that are required under Section 6(8) of RR No. 7-2024 may be stamped on the document if not originally included, upon conversion. (Q&A No. 10 and 11)
• An invoice should be used in sales transactions which are typically either cash (paid) or on credit (not yet paid) starting 27 April 2024. Taxpayer may label or name its Invoice to reflect its specific sales transactions. To clearly identify the type of sale, the seller may use different descriptive names for the Invoice to reflect the nature of transactions. (Q&A No. 13)
• Instead of Billing Statement or Statement of Account, a Billing Invoice shall now be issued upon billing (e.g., in case of utility companies and other recurring service providers). The Billing Invoice should contain the required information provided under RR No. 7-2024, as amended, including the quantity, unit cost and description or nature of service pursuant to Sec. 237 of the Tax Code. (Q&A No. 14)
• Sellers engaged in the sales of goods or services cannot issue an Invoice separately upon receipt of payment. An OR or Payment Receipt or Acknowledgement Receipt may be issued upon subsequent collection or receipt of payment. (Q&A No. 15)
• An Invoice can be used for both sales and collections of payment/receivable for the same transaction if such Invoice contain an information acknowledging the receipt of payment for the said sales transaction. (Q&A No. 16)
• Taxpayers may have its own choice of using more than one type of Invoice. However, such choice should consider the transactions that will be issued said lnvoice/s. (Q&A No. 17) 

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

For those opting to continue using OR as supplementary document, it shall continue the last approved serial number of its OR when applying for subsequent ATP for Official Receipt as supplementary document. (Q&A No. 18)

• Taxpayers using CRM/POS/e-Receipting/e-lnvoicing systems can now replace "Official Receipt" with a more descriptive term for their Invoices without the need for approval of the RDO. The seller shall submit a Notice indicating the starting serial number of the converted Invoice and the start date when such serial number was/will be issued. (Q&A No. 19)
• All unused manual and loose-leaf ORs to be converted as Invoice shall be reported to the BIR by submitting an Inventory Report of unused ORs, indicating the number of booklets and the serial numbers of the unused ORs converted to Invoice.

Taxpayers using CRM/POS machines/E-receipting (CAS/CBA with e-receipting) or E-Invoicing software that renamed the ORs being issued to Invoice shall be 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 the converted Invoice and the start date when such serial number was/will be issued.

The said Inventory Report and Notice on the Renaming of OR to Invoice shall be submitted to the RDO/LT Office/LT Division where the Head Office or Branch Office is registered or through the Taxpayer Registration-Related Application (TRRA) Portal via email of the Compliance Section. For Inventory Report, the same shall be submitted on or before 31 July 2024. As to the Renaming of OR to Invoice, the same notice shall be made within 30 days from the completion of machine/system reconfiguration/ enhancement or on 31 December 2024, whichever comes first. (Q&A No. 21)

The taxpayer may submit the Inventory Report and Notice on the Renaming of OR to Invoice of all its branches, to the RDO where the taxpayer's Head Office is registered. 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. (Q&A No. 22)

• The Computerized Accounting System (CAS) or Computerized Books of Accounts (CBA) with Accounting Records System of the taxpayer may be enhanced on or before 31 December 2024. Any extension due to enhancements of the system must be approved by the concerned Regional Director or Assistant Commissioner of the Large Taxpayers Service, which shall not be longer than six (6) months from 31 December 2024. Taxpayers requesting for an extension to enhance their system shall notify the concerned RDO/LT Office/LT Division by submitting a Letter Request before 31 December 2024 stating the reason or justification for the request for extension, the target date of completion of enhancement, email address and contact details of the contact person. (Q&A No. 23 and 24)
• The RMC also provides that penalties shall be imposed on the following: 

a. Issuing an OR (whether stamped with "Invoice" or unstamped) generated by CRM/POS, E-receipting or Electronic Invoicing Software and CAS/CBA with AR for the sale of goods and services after 31 December 2024 or until the completion of machine/system reconfiguration/enhancement, whichever comes first, and issuing of Manual and Loose Leaf OR (unstamped) after 27 April 2024. (Q&A No.26)

b. Issuing an OR, Payment Receipt, Collection Receipt, Billing Statement or Statement of Account only without the corresponding Invoice or Billing Invoice upon sale of goods or services (Q&A No. 27)

c. Erroneously issuing a VAT invoice by a Non-VAT seller (Q&A No. 28)

d. Issuing an Invoice with incomplete information required under Sections 3(8) and 6(8) of RR No. 7- 2024, as amended, by a VAT-registered taxpayer.

• The RMC also provides guidance on the following:

a. Document to be issued as evidence of the transaction for sale of service with different date of transaction and date of collection of payment. (Q&A No. 31)

b. Document to be issued and information to be contained therein by a non-stock non-profit educational and/or charitable, religious, cultural or social welfare corporation, institution, foundation, trust or philanthropic organization or research institution or organization, Non­Governmental Organization (NGO) upon receiving a donation or funds. (Q&A No. 32)

The sample formats/layouts of Invoices to be used as reference by taxpayers and concerned BIR personnel are Annex A1 to B6 and Annex C to D of the RMC.

Here is the link to the full text of the issuance: RMC No. 77-2024