Every business entity is mandated by the Bureau of Internal Revenue (BIR) to issue an official receipt and/or sales invoice for every sale of goods, properties or services. The invoice and/or receipt serves as supporting document.
In this article, we will discuss the difference between a sales invoice and official receipt, as well as when to issue one.
Important Note: This article was originally written in September 2013. The information stated in this article are applicable to transactions prior to the implementation of Republic Act No. 11976 – Ease of Paying Taxes (EOPT) Act, Revenue Regulation (RR) No. 3-2024 and Revenue Regulation (RR) No. 7-2024 which were released in January 5, 2024 and April 11, 2024. With such change, this article will no longer be applicable starting April 27, 2024 and onward. You may read the following articles in this regard:
VAT vs Non-VAT
Before we discuss the difference between a sales invoice and an official receipt, let’s first understand the two (2) types of taxpayers: (1) VAT and (2) Non-VAT. To learn the difference between VAT and Non-VAT, you may read this article Difference Between VAT and Non-VAT.
Types of Transaction
Once you understand the difference between VAT and Non-VAT, the next step is to know the type of transaction that your business is engaged to, such as:
- Sale of goods or properties
- Sale of services or lease of properties
For better understanding, we divided this article into two (2) sections. The first one is for VAT Taxpayers and the second one is for Non-VAT Taxpayers.
VAT Taxpayers
1. Engaged in Sale of Goods or Properties
If you are a VAT registered taxpayer engaged in sale of goods or properties, you will need to issue the following:
a. VAT Sales Invoice
- Sales invoice is issued by the seller to the buyer as written evidence on sale of goods or properties in an ordinary course of business, whether cash or on account (credit).
- Sales invoice list down the details of the items or goods sold. It will also be the basis of the output tax liability of the seller and the input tax claim of the buyer.
b. VAT Collection Receipt
- Collection receipt is issued by the seller to the buyer as acknowledgement on receipt of cash and/or payment of goods sold.
- When you issue a collection receipt, indicate the sales invoice number to which the collection pertains to.
Note: When the taxpayer is engaged in sale of goods or properties, it will need to issue a sales invoice when the goods is sold to the buyer, whether cash or on credit. If the sale was on credit, the seller will then issue an collection receipt upon receipt of cash as payment from the buyer. If the sale was paid on cash, the cash invoice is enough.
2. Engaged in Sale of Services
If you are a VAT registered taxpayer engaged in sales of services, you will need to issue the following:
a. VAT Official Receipt
- Official receipt is issued by the seller to the buyer as written evidence on sale of services or leasing of properties, as well as acknowledgement on collection of cash payment on services rendered.
- It serves as basis of the output tax liability of the seller and input tax claim of the buyer.
Note: When the taxpayer is engaged in sale of services or leasing of property, it is not necessary to issue a sales invoice since there are no items or goods involved. Alternately, the taxpayer may use Service Invoice or Billing Statement.
Non-VAT Taxpayers
1. Engaged in Sale of Goods or Properties
If you are a Non-VAT registered taxpayer engaged in sale of goods or properties, you will need to issue the following:
a. Non-VAT Sales Invoice
- Sales invoice is issued by the seller to the buyer as written evidence on sale of goods or properties in an ordinary course of business, whether cash or on account (credit).
- Sales invoice list down the details of the items or goods sold. It will also be the basis of the percentage tax liability of the seller.
b. Non-VAT Collection Receipt
- Collection receipt is issued by the seller to the buyer as acknowledgement on receipt of cash and/or payment of goods sold.
- When you issue a collection receipt, indicate the sales invoice number to which the collection pertains to.
Note: When the taxpayer is engaged in sale of goods or properties, it will need to issue a sales invoice when the goods is sold to the buyer, whether cash or on credit. If the sale was on credit, the seller will then issue an collection receipt upon receipt of cash as payment from the buyer. If the sale was paid on cash, the cash invoice is enough.
2. Engaged in Sale of Services
If you are a Non-VAT registered taxpayer engaged in sale of services, you will need to issue the following:
a. Non-VAT Official Receipt
- Official receipt is issued by the seller to the buyer as written evidence on sale of services or leasing of properties, as well as acknowledgement on collection of cash payment on services rendered.
- It serves as basis of the percentage tax liability of the seller.
Note: When the taxpayer is engaged in sale of services or leasing of property, it is not necessary to issue a sales invoice since there are no items or goods involved. Alternately, the taxpayer may use Service Invoice or Billing Statement.
I hope this article has been helpful for you. Feel free to leave your questions or clarifications in the comment box below.
What if the business is in line with Services. and we issued Sales Invoice for such services. Can we issue a collection receipt if the above transaction was paid? Will there be a difference between collection receipt and an Official Receipt?
Hi Ms. Cindy, Thank you for your question. The answer is it depends on what was registered to the BIR. Did you register the Sales Invoice and Collection Receipt with the BIR?
my business permit says i’m a retailer although my company name includes services. bir issued atp to us “service invoice” instead of “sales invoice”. now i would like to know how to fill-up the service invoice whenever we have a 1-lot transaction for civil works.
thank you.
Hi Ms. Pauliza, thank you for your question. What’s the nature of your business, is it sale of goods or services? If you are engaged in sale of service, you are going to issue “Official Receipt” and not invoice. Invoice applies to businesses engaged in sale of goods.
Hi,
Above you mentioned that when the taxpayer is engaged in sale of goods or properties, it will need to issue a sales invoice when the goods is sold to the buyer, whether cash or on credit. If the sale was on credit, the seller will then issue an official receipt upon receipt of cash as payment from the buyer. My question is: Is it really mandatory to issue an official receipt even though a sales invoice has already been issued during the sale of goods on credit? If yes, is there any legal justification for the said requirement? What if the company is no longer existing and has surrendered the official receipts to the BIR what document can the said closed company issue as proof of payment of its receivables before closure? Thank you in advance.
Hi Mr Romeo L. Yusi, Jr
Thank you for raising the questions. We updated our article for some changes based on our understanding of Revenue Regulation No 18 – 2012 of the Bureau of Internal Revenue and inputs from the BIR Seminar we attended. If you’re a seller of goods, you may issue either cash invoice (for cash sales of goods) or charge invoice (for sale of goods on credit). For charge invoice, you may issue either collection or cash receipt upon receipt of payment. Without valid official receipt and/or sales invoice, you cannot claim the payment as expense or deduction.
We hope we were able to answer your questions. Thank you.
Thank you for your reply. However, my problem has something to do with the issuance of a Sales Invoice for sale of goods on credit. Now, the buyer wants to pay but the seller can no longer issue an official receipt because according to the seller all its official receipts have been destroyed during a flood and it already stopped its operation and did not print new sets of official receipts. My question now is: How can the seller claim the payment as deductible expense if the no official receipt will be issued by the seller? Will it be sufficient if the seller would just issue an acknowledgement receipt or quitclaim and sign the buyer’s check voucher? I ask this because according to your above article there is a need for the issuance of an official receipt and I quote “Note: When the taxpayer is engaged in sale of goods or properties, it will need to issue a sales invoice when the goods is sold to the buyer, whether cash or on credit. If the sale was on credit, the seller will then issue an official receipt upon receipt of cash as payment from the buyer. If the sale was paid on cash, the cash invoice is enough.”
Hi Sir Rommel, We advice that you seek professional consultation for proper handling of your case.
Just sharing my thoughts..
when the expense involves the purchase of goods, the substantiation requirement must be a Sales Invoice. The payment can be supported by supplementary receipt either in the form of a collection receipt or acknowledgment receipt (whichever is the BIR registered receipt of the supplier). On the other hand, for payment of services, expense should be supported with an Official Receipt. RR 18-2012 made a clear distinction of the two principal receipt/invoice (SI/OR).
The expense should be substantiated with principal receipts for tax-deduction purposes.
What Revenue Regulation No? is the basis for the industry engage in services issued only official receipts and if industry engage in goods will issue a Sales Invoice and Official Receipt upon payment received?
Is there any regulations???
Hi Randel Cano. You may refer to Revenue Regulation No 18-2012 for guidance. Thank you
When you sold goods, you only issue Sales Invoice (RR18-2012, Sec. 2, 2.1). You are not allowed to issue Official Receipt (OR). A supplementary receipt called Collection Receipt (Sec. 3 of same RR) shall be issued to acknowledge payment relating to the sale of goods made, and not OR.
We already updated our article. Thanks
good morning tanong ko lang what is the policy kng hindi na nakapagbigay na resibo sa costomer.kasi ngaun sa kakagayan ko nakabili ako ng celpone sa isang celshope eh may deperensya ung celpone ngaun ayaw nila palitan.sana matulungan u po ako.
Is there any problem if I bought office supplies and the supplier did not issue official receipt, just delivery receipt only?
Hi Len. It depends, you may claim it as expense or deduction as long as the delivery receipt is registered to the BIR. Otherwise, it’s not valid as expense if its not registered with the BIR and not valid for input tax. Hope that helps
Hello! as you said above, Official receipt is the basis of Input Tax then the Delivery receipt considered as official receipt?
Thanks
Format of delivery receipt does not bear any amount for the goods/services delivered. Thus, such document cannot be used to claim any expense as a form of tax deduction. Buyer must not release any payment to supplier without issuing the evidence of payment such as Sales Invoice/Official Receipt. Non issuance of receipts is a violation of the NIRC of 1997, as amended.
There are a lot of receipts mentioned from your answers to above queries but what are the receipts that non-VAT businesses, in line with sales of goods, can exist without? I am non-VAT and my business is in line with sales of goods. The printer told me that what I need are SALES INVOICE & COLLECTION RECEIPTS. As I understand, I should issue sales invoice (whether cash payments or on credit) and official receipt (upon receipt of cash if sale is on credit).
1.) Can a small-scale business use sales invoice alone for all transactions?Is the official receipt REQUIRED after the sales invoice?
2.) Is cash invoice equivalent to sales invoice?
3.) Is charge invoice similar to collection receipt?
Thanks for your help
Hi Ms Mary Rose, thank you for your comment/question. Our article is based on the general rule. To answer your questions:
1) You may issue collection receipt upon collection.
2) Cash invoice is equivalent to cash sale of goods. Sales Invoice is equivalent to sale of goods on credit.
3) No. collection receipt is issued upon receipt/collection of payment.
Hi,
Whats the difference between collection receipt and official receipt? , i was issued initially with official receipt from bir then my accountant told me i should change it to collection receipt, i’m engaged with sales of good (general merchandise). is there a new ruling?
Hi Sir Ronald, thank you for your comment/question. In general, official receipt is issued for sale of services while collection receipt is issued upon receipt/collection of payment.
Thanks. Just a couple of questions.. I recently sold goods to a govt agency that is vat-exempt or vat zero rated sales, how will that reflect in my income tax? I’m a vat registered company. And how is it computed? Thanks again.
Hi Sir Ronald, thank you for your question. Since this is out of the topic, we will consider your question in the next article we will post in the future.
Hello ma’am Ma. Lourdes,
I am a bit confused your answer to mr. Roland’s query.
for supplier of Goods,as mentioned on foremost statement Official Receipt is acknowledgment on receipt of cash as payment and your answer to Sir Roland is Collection Receipt is also acknowledgment receipt on receipt of cash as payment, these two kind of receipts serve the same purpose right? what is their difference?
On my understanding, since these two receipts are the same, Official receipts is use by Services company when they received cash payment, while the Collection Receipt is for seller of goods upon collection of cash payment.
Thanks
Hello Sir/Madam,
What if received rental deposit and rental advance, what is the form to be issued, if we issue an OR it will become a VATable transaction thus, collected rental deposit and advance will become a revenue while in reality its still a liability. Also should the tenant withhold tax on the rental deposit/advances? Could we issue an acknowledgment receipt only since this is just an advance payment?
Hi Ms Benny, thank you for your comment/question. You may issue a BIR Registered Acknowledgement or Collection Receipt for the amount received on the deposit. For the advance payment, as a general rule, it is already subject to withholding tax upon receipt of payment.
Sir, one of our customers argued that based on RR No. 18-2012 Section 2.2, when issuing the official receipt, we need to indicate the total amount based on our sales invoice issued (we give them a 30-day payment term, thus the issuance of charge sales invoice). This means that, even though upon collection they have already taken the 1% withholding tax, which means the check payment is less than 1% W/Tax, they still require us to issue an official receipt which is equivalent to our charge sales invoice amount. Is it correct? The way I see it, if our official receipt indicates the gross amount (including the W/Tax amount), then this total amount is again subjected to the income tax which would mean we are paying remitting tax more than what we are supposed to do so. I hope you can enlighten us on this concern. Thank you.
Hi Ms Kristy, when issuing either the OR or collection receipt, you may show how the net amount is derived by indicating the total amount of sales in the right left side and then indicate the amount of withholding tax.
Hello Sir,
I am engaged in a non-vat business in line with the sale of goods. my printer printed Sales Invoice and Collection Receipt. I am not engaged in credit of goods, as everything is sold in cash. Is the collection receipt mandatory? Please clarify. Thanks!
Hi Ms Mary Joy, you may apply for cash invoice so you don’t need to issue collection receipt. Otherwise, you need to issue both the sales invoice and collection receipt for every sale.
Hi! I am newly hire employee, in-charge in recording our company expenses, i was just confused about claiming of input tax to an official receipt? Is official receipt valid for claiming input tax. ?
Hi Azeneth, thank you for leaving a question. According to the recent BIR Seminar we’ve attended from a private accounting organization, when the sale is service and official receipt is issued, then you may claim the input tax if it’s VAT registered. If the sale is goods which issues sales invoice and official/collection receipt, the input tax claimed comes from the sales invoice.
hi good day, what if a supplier was a NON-Vat Registered Company Provider of Services, delivers goods to us but they only issued Delivery Receipt (w/o TIN details) and Official Receipt (indicating “not allowed to claim input tax”), is that allowed? and what would be the impact on books? thank you and more power.
Vendor should provide BIR registered official receipt, sales invoice or delivery receipts. The expense may not be disallowed as deduction for tax purposes.
Hi, I need some advice. If i am leasing a space, house, bording house, do i need to register this in BIR and need to issue an official receipt? The space I rented seems like a commercial space because the tenants are making it as a shop. But I declare this in my yearly ITR that I have some place for rentals. The problem is I did not register it as commercial space or rental space. What would be the possible worst scenario that I will be facing with? Can the BIR or DTI file a case against me? What would that be?
Let me correct my messsage..
Hi, I need some advice. If i am leasing a space, house, bording house, do i need to register this in BIR and need to issue an official receipt? The space I rented seems like a commercial space because the tenants are making it as a shop. But I declare this in my assets and liability that I have some place for rentals. The problem is I did not register it as commercial space or rental space. What would be the possible worst scenario that I will be facing with BIR or DTI? Can the BIR or DTI file a case against me? What would that be?
We are Non-VAT registered taxpayer engaged in Sale of Services. I would like to know what Tax Code can I find this statement
“ When the taxpayer is engaged in sale of services or leasing of property, it is not necessary to issue a sales invoice since there are no items or goods involved.”
I hope you can help us on this.
hello po and good day! i just want to know if the OR we issued upon payment of our clients’ accounts will also be subject to tax? said account was already reported to bir through the issuance of a charge invoice..
we are quite confused because one bir personnel informed us that we should pay tax for both the OR and CI we issued. parang doble ata po babayaran since we have already reported the CI and OR was only for the receipt of the said payment..
hope to hear from you..thanks po and more power.
You may register a collection receipt which you will issue in lieu of official receipt to avoid double tax
Hi! I would like to ask if a business in line w/ room rentals specifically bedspacing / dormitory should issue an official receipt to tenants? If so, do tenants need to provide a bir form 2307 before they issue an O.R.?
if you are earning more than 12,000 per mont rental fee. Yes you need to register and issue receipts on rental payments.
we have a small business engaged in sale of goods, our business is inside the market.. do we have to use both sales invoice and official receipt or sales invoice alone is ok and official receipt alone will do?
..we have a small business engaged in sale of goods..our printer is the one who are applying for our authority to print, according to her the bir approved sales invoice for us so she printed only sales invoice.. is it really ok to use sales invoice or we have to use both official receipt and sales invoice?
.. we are only engaged in selling of goods and not in credit of goods, so is it ok to use only one kind of receipts? either sales invoce or official receipt?
Hi! What shall I use? My company is VAT registered we sell goods and also services (repair of goods that we sold and rental of goods also) What shall I use sales invoice or official receipts? My official receipts are marked with “NOT VALID FOR CLAIMING INPUT TAX” although VAT registered. Thanks.
Helo po.. Ask po ako f vat registered ang call center corporation, ano po ang pwede ba claim na input tax, if Meron man? Foreign po lahat clients nila.
Hi Ms. Maria,
In my understanding, generation of sales invoice is after the payment of first downpayment or installment which is after the reservation fee.Is it really true? or is it mandatory to give sales invoice?for what purpose?do we give it to the buyer or just a copy for BIR and the company?
Best Regards,
Migs
Good Day madam!
just want to ask if delivery charges included in a sales invoice subject to vat? is it included in the total gross sales/receipts when we file vat returns?do we need to issue OR for delivery charges separate from goods that we sell? thanks.
Hello ! in a VAT registered company (sole proprietor) nature of our business is tailoring(making jackets and basketball uniform made to order) how can i deduct sales discount in my Cash receipts to lessen Vat payable?
is it possible?
good day,
pag non vat registered yung bumili ba ang magreremit ng 12% sa BIR?
Hi! We are a water refilling station operating for more than 3 years now. When we registered with the BIR back in 2010, we were asked to print official receipt booklets only, because we are categorized as providing services. No need for sales invoices. Our certificate of registration classified us under 4100 COLLECTION, PURIFICATION, DISTRIBUTION OF WATER. However, recently, we have a client requiring us to issue sales invoices, but we don’t have any. This brings forth our uncertainty if we should have sales invoices in the first place. My questions are:
1. Is the classification of our water station under 4100 correct?
2. Is classification 4100 considered services only and does not require the use of sales invoices?
3. If the answer of any of the 2 above is “no”, then we may need to print sales invoices. Given that we have been operating for more than 3 years without sales invoices, are we going to be penalized by the BIR if we will print our sales invoices just now? Are we liable for the incorrect classification made by the BIR?
4. If we are going to be penalized, is there a way to avoid it or minimize it?
Hi! I would like to know if the business is engaged in the sale of goods and services, do we need to issue o.r. separately for services rendered? or can we issue sales invoice and collection receipt just like what we normally issue for the sale of goods? Thank you.
what reciept should be issued for an lpg retail business? How should we use the collection reciept and sales invoice. Just a newbie in the business. Thanks in advance.
Hi,
I would like to ask if a “sales invoice” is valid for claiming input taxes?? how about a “collection receipt”?? what if the latter has a note “not valid for claiming input taxes”?
thanks much. 🙂
Hi,
I would like to ask if the supplier does issue OR to us can we still claim the expenses even withhout OR as evidence of payment.
From the RDO i belong to, she clarified that SALES INVOICE is for goods sold; OFFICIAL RECEIPT is for services rendered.
She was very specific about that distinction.
I have a new business and I am new to this. I want to know if I need a separate book for OR and SI.
Thanks a mil.
my company is giving clothing allowance as we travel outside the country, however, the company does not advance to us the allowance but instead, we will submit an OR for reimbursement wherein our company name should be written on the OR….
establishment using POS issued only tape receipt and in case you asked for OR they will give a Sales Invoice in exchange of the tape receipt…my question is, can establishment issue a Cash Invoice instead of Sales Invoice in exchange of the tape receipt?
hi
we are renting out copier machines and printer machines and our clients rate depends on the quantity of print outs they’ve consumed. we are currently using sales invoice since our clients only honors sales invoice but since we fall on the service category we are required to use official receipt as well. it would mean that our liabilities would double.. what should we do? some of our clients do not honor collection receipt.. can we put “not valid source of input vat on our o.r. instead?
Hi, I just want to ask what is the provision/tax code that shows this explanation? thanks.
Hi, I know that Delivery Receipt and Sales Invoice are different but I called the Water refilling Station to ask for a Sales Invoice or OR. The guy said the the DR issued is the same as OR. He also said that BIR told them it’s okay to use it. I think most Water Refilling Station use the same.
In the DR were The Business name, the Operator, the Address, and Telephone Number. There’s no TIN #.
Can i use it to lessen my Tax? Or should I “sumbong” them to BIR?
Hi. Just want to clarify, where does a design and build company/construction fall? If this is service then, we should just issue and OR? Our client is asking for a billing/sales invoice and will not release any payments without this. I thought the sales invoice is only for sale of goods? Hope you can enlighten me. Thanks.
Hi, just want to ask, how to apply for non vat receipt? we only have one condo unit for rent and the tenant is asking for receipt even a non vat receipt. thank you.
Hello. We offer a mix of goods and services. Upon conclusion of a project, we issue a Charge invoice for client’s internal processing to prepare payment. Our CI indicates “Not valid for Input Tax”. When payment is collected, we issue an OR. If, for example, CI was issued January and OR was issued February, when should the sale be reflected in our books– Jan (CI) or Feb (OR)? My accountant and your advice above to Gaile indicate it is based on the CI, but I asked BIR and they said the OR should be the basis. I’m so confused. Advice, pls. TY.
Hi there, I have a very big problem maam.. what if the official receipt are not used according to their numbers or orders?? what should we do if we start on the 2nd book already and not used the first one.. what are the pros and cons of that..
Thanks..
As a non-vat retailer In my ATP I was only authorized to print a sales invoice. Now my customers are asking for an official receipt. The BIR assistance person says under their new regulations only services are authorized to print official receipts whereas before I had both the sales invoice and the official receipt.
Hi! Good Day! I would like to ask if their is a minimum amount of purchases before any customer can ask for Official Receipt? I raised this question since I have an experience of asking for Official Receipt from a convenience store. I bought a goods worth 22 pesos only and the supervisor of that convenience store told me that they will only issue Official Receipt if purchases exceeds to 100 pesos. If their is a minimum, how much? if their is none, what would be the punishment of BIR in stores like this that refuses to issue OR’s?
Hi,
Is there such a regulation re VAT on residential unit only? Lot is not included.
Please advice. Thank you.
Do i need to issue an OR after i issue a sales invoice?
Does a store need to have an OR even if you already have a sales invoice?
Can we get a certification from the BIR that we dont need to issue an OR if a company ask for an OR after giving the sales invoice for sales of goods?
Hello! May I ask what the difference between an official receipt and a collection receipt is? Which among the two is supposed to be used for what purpose/application? Also, where does the sales invoice come in with regards to both o.r. and c.r.?
We are a vat registered trading company engaged in selling medical supplies. Thanks in advance.
I want to know if a restaurant business in in the sale of goods or services. Thank you for your help.
Hi! We are a dog grooming and retail shop. We use Sales Invoice for all transactions.
– should we limit the use of Sales Invoice to retail sales
– should we limit the use of Official Receipt to grooming services
– or should we combine all transaction to one sales invoice and issue and official receipt upon payment? Thanks!
Ms. Yanuaria, good day, ma’am. Question lang po kasi naguguluhan ako. Meron kaming “medical reimbursement program” sa company namin. OR po ang nire-require ng Finance Dept. Sa isang known optical shop po ako nagpagawa ng eyeglasses, and Collection Receipt lang ang in-issue nila sakin. I demanded an OR kasi nga yun ang hinihingi ng Finance Dept. namin, pero walang maibigay ang optical shop dahil yung Collection Receipt na nga daw po ang equivalent ng OR. Sinubmit ko pa rin po sa company for reimbursement pero nareject dahil hindi sya OR. Pano po kapag ganon? Mali ba ang Finance Dept. namin? I was looking for a .gov site that states that a Collection Receipt serves as an Official Receipt na rin, pero wala naman ako makita. Puro blogs lang na hindi ko naman pwedeng gamitin as reference kasi balak kong idispute yung pagreject nila. Thank you in advance.
I just want to clarify, what if the buyer is already given a Sales Invoice for the sale of goods, do the seller need to give the buyer an OR if the buyer request it? or Sales Invoice is already enough?
Hi Ms Lourdes / MPM;
My husband new company is engaged in sales and services.
They have sales invoice , collection receipt , delivery receipts (all this indicates for trading) and official receipt (sales of service).
I am confused actually when to use the sales and collection, so I just want to ask the ff:
1.) if they have sales on goods, after delivery what they should issue? sales invoice or collection receipt?
2) what should they issue if they require the client for 50% downpayment before delivery of goods? and on another 50% fullpayment?
3) what should they issue if they require the client to pay in full on the day of delivery of item?
4) what should they issue if the client will pay in full, after number of days after delivery?
Thank you .
Hi Ma’am,
I would like to ask when VAT when will be recognized, is it upon sale or collection? For example, Company X sold merchandise to Company Y on credit(both are VAT registered), do I need to record the output VAT already? Dr A/R Cr Sales Cr output vat? how i about when only partial payment is made? how to account the VAT and also the creditable, in which case 1% is applicable.
Many Thanks.
Hi! I would like to know if acknowledgment receipt written on a paper can be accepted as deduction from the gross income? How should I process the payment for the EWT. I have only the TIN number of the owner of the house. Thank you
We have a business with a nature of advertising, at first we have a sales invoice, official receipt and delivery receipt because we all need this to our business but this year they didn’t approved our atp for sales invoice only official receipt and delivery receipt because theysaid our nature of business is advertising and it is a services thats why they did not issue us a sales invoice, what should we do in order for us to have a sales invoice again since we are in a selling of goods?
Hi, we are engaged in trucking service. Payment of toll fee is one of our major cost, can we claim input tax on the tape registered receipt issued to our drivers?
Thank you.
Would like to ask if reimburseable expenses – meaning an expense that should be for the account of client but advanced first by the service provider, do we need to issue OR upon receipt of payment? If so, are we liable to 12% vat? The payment is not for service but it is just a reimbursement.
Thank you again.
Is there a problem if I buy a land and the seller did not give me official receipt only deed of sale?
Good afternoon Ms. Yanuaria,
May I ask what amount should be written in the OR, if the amount received is net of payables? In the example shown below, should we write the 100 or just the net amount received of 50?
Receivable 100
Payable (50)
Net amount 50
Thank you
Hi I just want to know kung anong type of business ang dapat gumamit ng collection receipts at anong type of business ang dapat gagamit ng official receipts.
Good day, our business is a water refilling and is a non-vat registered. Its only now that we have a number of customers who ordered water from us weekly and pay us every end of the month (we refer or call them as our corporate account). Because of these corporate accounts we were asked to apply for a delivery receipt(BIR Reg) because one of the account required us to give or issue them one. We now have 4 receipts approved or bir registered. First receipt was Sales Invoice(SI)- this is what we issue to our everyday customers. For the corporate account we were given a set of 3 these are Delivery Receipt(DR), Charge Sales Invoice(CSI), and Collection Receipt(CR). Now my question is how to use it, which should be issued first to our corporate account? Every water delivered to corp acct we issued them a Delivery Receipt…my questions now are:
1.) Should i paired it with Charge Sales Invoice right away together with the DR? Or just the DR first?
………..By end of the month we send them a copy of their itemized weekly water order/delivery thru a statement of Acct(SOA).
2.) Or is this the time i will issue a CSI and attached it to their SOA?
3.) Do i have to collect back the DR we issued to them once they have received their SOA with attached CSI?
4.) …..Now, once their Cheque is ready that’s the only time i should issue them a CR, right? *once we got their cheque payment.
5.) Do i still have to issue them a SI even if CR was issued to them already?
6.) Which is the ‘official receipt’ from the two (SI/CR)? *quite confusing..
………Another concern is once they received the soa they’ll prepare us a cheque but amount is lesser, because according to them tax was deducted already something like that (DTI & Philhealth account does that to us).
7.) What amount should we indicate in the SI/CR if ever we’re going to issue them then? Is it the Total Amount they ‘owe’ us or the total amount in cheques they are paying us?
……… With the 2 kinds of OR (Sales Invoice and the Collection Receipt)
8.) How are we going to log it in our book?
9.) Aren’t we going to be taxed double if ever?
What if a business gave you a sales invoice but not under the buyer’s name and the cash paid is not the same as the cash we gave like we gave P200 cash and gave us P350 sales invoice and under other people’s name example the manager?
Hi ..would like to what if my landlord does not give me a reciept for the house rental for 8 years. Can I ask for a reciept? Because I have been asking several times already but they cant provide me.3 houses po pina pa rentahan nya..other houses..tenats been there for 23 years.e said ..yung checke raw po are a form of a reciept na..I want a reciept…is it too much to ask?..I’ve check this to the brgy .they don’t have a permit for this rental business.
.. thank u
Hi!
Just want to ask, it is possible to use different WTax Code for one Vendor? I have a Vendor, which line of business is both selling of goods and services. If I would pay the Vendor, can i deduct 1% withholding on Goods transaction and 2% withholding for Services transaction. Does BIR accept this? Thanks.
Hello! Thank you so much for this opportunity that my question would be given answer. This is in regards to qualifications of invoices in claiming input taxes on purchases of goods and services. Is it necessary that our company’s name or my employer’s name be written in the invoices of our purchases in order to claim input tax? Because some of our receipts and invoices were sold to “Cash”, can we still claim input tax on these? Again, thank you so much. More power and God bless!
Hi, I am a new business owner engaging in retail selling of goods. May I know if I have to secure two receipts (NON-VAT Sales Invoice and Official Receipt) from BIR or otherwise just select one.
What if a year later we need to provide services to our customers eg. technical and installation services. Do we need to change our receipt too?
Hi,
I bought a cellphone, they issued an order receipt without any control number/order receipt number. My question is, “Can you consider the Order Receipt as the Sales Invoice?” If no, Is they any liability on the store who issued an Order Receipt and not an Official Receipt/Sale Invoice?”
Hello Ma’m, we are a manufacturing company exporting goods and we engage the services of shipping and forwarding companies. Part of the shipping amount we paid to them (they issue us OR) is container deposits which later on they will return to us. Now, I would like to ask if we are required to issue OR upon refund of our container deposits from freight forwarder company.
Looking forward to your reply. More power. Thank you.
Hello Ma’m, we are a manufacturing company exporting goods and we engage the services of shipping and forwarding companies. Part of the shipping amount we paid to them (they issue us OR) is container deposits which later on they will return to us. Now, I would like to ask if we are required to issue OR upon refund of our container deposits from freight forwarder company.
Looking forward to your reply. More power. Thank you very much.
hi,
I would like to know the computation and the receipt presentation when you apply service charge in a restaurant. Is this based on gross sales or on net of vat?
Thanks,
Noel Clavecilla
Hi ! Good day ! I have some queries regarding Cash Invoice and Cash Sales Invoice are they both the same? can we claim input tax on this? this is in regards to the reimbursement of expenses from our employees ,some submit cash invoice ,and there are also cash sales invoice,please enlighten me . Thank you
George
I’ve seen this post and seeking for your answe:
I inquired at the bureau and ask the difference.. between the collection receipt when to use the collection receipt… info from a printer stated that Official Receipt is now called Collection Receipt. This Just confused me… now new receipts was printed and the person who dealt with the printer had decided to print the collection receipt …. no official had been printed… can you say something about this.. and the implication that might emerged from this.. thanks
Sir/Madam,
Bago lang po ako sa business. Nag rent po kami ng property/resort last December 15, 2015.
Nakapagbayad kami ng Deposit , advance at monthly ng February and March. Pero wala po Sales Invoice at Official receipt na binigay.
Ano po klase ng receipt and kelangan kung hingin sa Lessor?
Shad
Hello!
What receipts shall I serve the ff:
*Charge Sales Invoice
*Biiling Statement
Thank You!
I never took notice before but establishments like lechong manok chains don’t issue receipts. I had an unfortunate experience of having a small dispute with my purchase before, so it’s hard to argue when there is no receipt issued before. These chains are really big like what you see in every corner in the country, how do we know if they pay right taxes? And OR has to be specially requested?
I think some of this article is redundant. It will save time if you can shorten this
Btw, thanks
Hi! We are engaged in construction, a corporation. Just a question. The scenerio is, we are currently a subcontractor to a gencon. One of the requirements of the gencon is to issue a sales invoice for us to get billed. Now, upon claiming the check we have to issue an official receipt which I don’t if its necessary. Can you enlighten me please? How come we have to issue an OR when infact we already issued a sales invoice before the claim? Thank you very much maam.
Hello
Our company issued already sales invoice and then official receipt as payment of goods sold. However we are still required to.issue collection receipt…
Where can we get this collection receipt then?
I buy most of the product I sell from Divisoria or small wholesalers and they usually do not issue OR and receipts are just scribbled on a piece of paper. Is it possible to use those for my expenses. will they count when I am doing my books? Thank you.
Hi. I would like to ask, if an acknowledgement receipt be used in place of an official receipt. An electric company is using it. THey issue ORs for government entities and acknowledgement receipts to households. Can we oblige them to issue us official receipts? Can we report them to BIR?
hi. i would like to ask. can an acknowledgement receipt be used in place of an OR? this electric cooperative issues OR to government entities while acknowledgement receipts to households. Does BIR allow that?
Hi, please enlighten me on this: FYI, I work in a company that normally sells goods and services.
According to a friend, vat should be declared upon sale of goods and that vat for sales of service should be declared upon receipt of payment. We used to put both sale of goods and service on the same invoice. He then told me that sale of goods should be in an invoice and that the invoice no longer needs a receipt. For the purpose of declaring vat, sale of service should be on a billing statement and that official receipt should be served only when the payment is received. I am raising this because I am a little lost as to when to declare the vat because because of the sale of goods and services issue. Am I missing something?
IF WE ISSUED A RECEIPT THEN THEY CANCELLED IT, IT IS STILL OKAY.. OR WE STILL HAVE TO PAY THE TAX
Hi. If a company sold goods and issued an Official receipt instead of SI, what is the implication to the seller company? TIA.
Mam me copy center po ako registered as non vat…karamihan po sa customer ko ay government school…problema ko po ang bir form 2307…ilang percent po ba ang binawabas…at alin at ilang percentage po ang i rereflect ko sa 2551M ….tnxs…and more power…
Hi,
We’re a manufacturing company specifically shirts for companies. We sold a batch of shirts to a company with their logo printed on the shirts. We issued SALES INVOICE and was about to use COLLECTION RECEIPT to collect the payment, but they said that we need to use OFFICIAL RECEIPT because what we did was a SALES OF SERVICE due to using their logo on the shirts. We are classified as MANUFACTURING in our Business Registrations. The shirt came from us, and not from them. And when we delivered, we delivered the shirts. So it should not be considered as SALES OF SERVICE. Is this correct?
Thank you,
Mike
Hi Mike, thank you for your comment and question. If your approved line of business (PSIC) in the BIR Certification of Registration (COR) is Manufacturing of Textiles and your Authority to Print (ATP) approved by the BIR is Sales Invoice and Collection Receipt, and not Official Receipt, then you may use that as explanation to your customer as to why you’re issuing S.I. and C.R. Also, considering you provided goods or products, not just purely the service of printing. Thank you