EOPT IRR Digest on New Invoicing Rules
Other Relevant Tax Updates:
- TAX & BUSINESS-RELATED NEWS [APRIL 23-29]
- BIR ISSUES IRR ON AMENDMENTS INTRODUCED BY EASE OF PAYING TAXES LAW ON REGISTRATION PROCEDURES & INVOICING REQUIREMENTS
I. TAX & BUSINESS-RELATED NEWS [APRIL 23-29]
1. Phinma to acquire another school, eyes expansion overseas
2. Philippine Business Bank seeks universal banking license
3. Gold miner kicks off 2024 IPO market
4. Cavite, La Union LGUs adopt 4-day workweek
5. COA calls out OSG over office rentals
6. BIR official not ambush target – police
7. Govt contractual, job order workers get a break
8. DMCI to buy Cemex Philippines for $305 million
9. Is it time for the Philippines to shift to a 4-day work week?
10. Two of the Philippines’ Biggest Hotels Are Expected to Open in Cebu and Davao This Year
11. CV records ‘fastest growing economy’ among all regions in PH
12. Ayala Land gets shareholder approval for merger with 34 subsidiaries
13. BIZ BUZZ: All aboard: Recto completes ‘dream team’
14. NCR office space rental prices seen to drop as vacancy levels increase — JLL
15. SC: Immunity for ADB officers limited to official acts
16. Isla Lipana vows cooperation in DoJ probe amid SEC complaint
17. Nueva Vizcaya folk challenge OceanaGold mine renewal in court
18. Authorities nab BIR ‘fixer’ syndicate
II. BIR ISSUES IRR ON AMENDMENTS INTRODUCED BY EASE OF PAYING TAXES LAW ON
REGISTRATION PROCEDURES & INVOICING REQUIREMENTS
Revenue Regulations (RR) No. 7-2024 issued on April 11, 2024, implements the amendments introduced by Republic
Act (R.A.) No. 11976, otherwise known as the Ease of Paying Taxes Law on Registration Procedures and Invoicing
Requirements pursuant to Sections 113, 235, 236, 237, 238, 242, 243 of the 1997 Tax Code, as amended.
Highlights of the changes include:
A. INVOICING REQUIREMENTS
1. Whether sale of goods or services, the same shall be covered with invoice. The Invoice will now serve as the principal
document for output tax/input tax claims for transactions subject to VAT.
2. Supplementary documents are not valid proof to support the claim of input taxes by the buyer/purchaser.
2.1 Official receipts are now considered supplementary documents.
2.2 Other supplementary documents include delivery receipts, order slip, debit/credit memo, purchase order,
acknowledgement receipt, cash receipt, collection receipt, bill of lading, billing statement, statement of account, and
other similar documents.
3. On information to be contained in the invoice
3.1 Invoices should no longer include business style.
3.2 Optional to add DTI Registered Business Name or Tradename in addition to BIR-registered name.
3.3 If the sale of goods or services is directly between a business and consumers [Business-to-Consumer (B2C)] who
are end-users of its products or services, the business address and TIN of the buyer are not required to be included.
3.4 Taxpayers whose transactions are not subject to VAT or Percentage Tax shall issue a Non-VAT Invoice indicating
at the face of such invoice the word “EXEMPT.”
3.5 For taxpayers transacting with Senior Citizens (SC), Persons with Disability (PWD), Solo Parent, National Athletes
and Coaches pursuant to Republic Act (R.A.) No. 10699, and Medal of Valor Awardee or dependents pursuant to R.A.
No. 9049, specific additional information enumerated under these Regulations shall be provided in the Invoice.
3.6 Tickets such as transportation tickets, event tickets, amusement tickets, movie tickets, parking tickets, raffle tickets,
gaming/gambling tickets, electronic tickets, and other similar tickets, regardless of form or name, including those issued
by ticketing machines, shall serve as both an invoice and a proof of payment, if the word “invoice” is printed therein and
it contains all the required information outlined in the Regulations. Otherwise, the same shall be considered as a
supplementary document and a separate invoice shall be therefore issued.
3.7 The seller shall be liable for non-compliance with the invoicing requirements in case the issued invoice lacks
information.
3.8 The buyer shall be allowed input tax credits, except if the lacking information pertains to the following:
a. amount of sales
b. VAT amount
c. registered name and TIN
d. description of goods or nature of services
e. date of transaction
4. The word “Invoice” shall be printed on the face of the invoice.
4.1 The term Cash Sales or Charge Sales, at the seller’s option, can be indicated in the invoices as checkboxes to
reflect the type of transaction.
4.2 In case the taxpayer opts to have a separate set of invoices for Cash Sales or Charge Sales, the word “Invoice”
may be printed indicating the transactions that will be issued such invoices e.g., Cash Invoice, Charge Invoice/Credit
Invoice, Billing Invoice, Service Invoice, etc. Provided that the word “Invoice” is prominently printed or larger than the
word describing the transaction.
5. Invoice shall be issued by all persons subject to internal revenue tax:
5.1 regardless of the amount sold by a VAT-registered seller.
5.2 for each sale valued at Php 500 or more.
5.3 For each sale regardless of the amount of the transaction if the buyer so requires. Provided that if the sales amount
per transaction is below Php 500 but the aggregate sales at the end of the day is at least Php 500, the seller will issue
one (1) invoice for the aggregate sales amount at the end of the day.
5.4 The threshold amount of Php 500 shall be adjusted to its present values every three (3) years using the Consumer
Price Index as published by the Philippine Statistics Authority.
B. PRESERVATION OF BOOKS OF ACCOUNTS
1. All books of accounts shall be preserved for a period of five (5) years reckoned from the day following the deadline
in filing a return, or if filed after the deadline, from the date of the filing of a return, whichever comes later, for the taxable
year when the last entry was made in the books.
2. If the taxpayer has a pending protest or claim of tax credit/refund, and the books and records concerned are material
to the case, he is required to preserve them until the case is finally resolved in support of his defenses, even beyond
the 5-year retention period.
3. External auditor who certified the financial statements has the responsibility to preserve electronic copies of the
audited financial statements including the audit working papers within five (5) years from the due date of filing of annual
tax returns or the actual date of filing, whichever comes later, unless a longer period of retention is required under the
Tax Code or other relevant laws.
C. REGISTRATION REQUIREMENTS
1. The Annual Registration Fee of Php 500 is repealed effective January 22, 2024.
1.1 The existing BIR Certificate of Registration (COR) is valid although ARF is no longer required to be paid.
1.2 Taxpayers are not required to replace its existing COR which includes ARF.
1.3 Updating the COR is only necessary if there are changes to the registration information, excluding the ARF.
2. Taxpayer’s registration may be cancelled or transferred upon mere filing of the application, electronically or manually.
2.1 Cancellation or transfer shall not preclude the BIR from conducting an audit to determine tax liability.
2.2 If the BIR audit is initiated as a result of the transfer of registration, the Revenue District Office (RDO) that initiated
the same shall continue the audit.
D. TRANSITORY PROVISIONS
1. On Unused Official Receipts (ORs)
1.1 Unused ORs can still be used as supplementary documents 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. Other equivalent
documents such as Collection Receipt, Acknowledgement Receipt, and Payment Receipt are all the same, serve as
proof of payment that cash has been received, or that payment has been collected/made.
1.2 Unused ORs can be converted into INVOICE and can be used as primary invoice until December 31, 2024, provided
that taxpayers shall strikethrough the word “Official Receipt” on its face.
These documents shall be valid for the claim of input tax by the buyer/purchaser for the period issued from January 22
to December 31, 2024, provided that the invoice bears the stamped “Invoice” and contains the necessary information
required in Section 6(B) of the RR 7-2024.
Any ORs, whether stamped with “Invoice” or unstamped, issued after December 31, 2024, will be considered
supplementary documents and ineligible for input tax claims.
1.3 Stamping of ORs as invoices does not require BIR approval but must comply with the reporting requirements laid
down under these regulations within 30 days from April 27, 2024 (i.e., on or before May 27, 2024).
1.4 An inventory of all unused manual and loose leaf ORs to be converted as Invoice shall be submitted to the BIR on
or before May 27, 2024. The report should contain the number of booklets and the corresponding serial numbers. In
case of branch reporting, the receiving Branch RDO shall transmit the original copy to the Head Office RDO and retain
the duplicate copy.
2. On Cash Register Machines (CRM), Point-of-Sales (POS) Machines, E-Receipting or Electronic Invoicing Software
2.1 Taxpayers using CRM/POS/E-receipting/E-invoicing may change the word “Official Receipt (OR)” to “Invoice,”
“Cash Invoice” “Charge Invoice,” etc., whichever may be applicable, without the need to notify the RDOs having
jurisdiction over the place of business of such sales machines.
This reconfiguration shall be considered a minor system enhancement which shall not require reaccreditation of the
system on the part of the software supplier nor the reissuance of the Permit to Use (PTU) on the part of the taxpayeruser.
The serial number of the renamed Invoice shall start by continuing the last series of the previously approved OR and
submit notice, indicating the starting serial number of the converted invoice, to the BIR where the machines are
registered, in duplicate original copies. The receiving Branch RDO shall transmit the duplicate copy to the Head Office
RDO.
2.2 Taxpayers using duly registered Computerized Accounting System (CAS) or Computerized Books of Accounts
(CBA) with Accounting Records, need to revisit their system since the system reconfiguration will have a direct impact
on the financial aspect. Consequently, this major system enhancement necessitates an update of their system
registration by filing a new application. The previously issued Acknowledgement Certificate (AC) or Permit to Use (PTU)
shall be surrendered to the BIR, and a new AC shall be issued.
Reconfiguration and adjustment of the system shall be undertaken on or before June 30, 2024. Extension due to system
enhancements requires BIR prior approval.
Phinma to acquire another school, eyes expansion overseas [The Philippine Star, April 29, 2024]
Phinma Corp. president and COO Chito Salazar said the company is looking to add another school in its growing
portfolio this year.
Philippine Business Bank seeks universal banking license [The Philippine Star, April 28, 2024]
Yao-led Philippine Business Bank (PBB) is looking at obtaining a universal banking license from the Bangko Sentral
ng Pilipinas (BSP) as early as this year.
Gold miner kicks off 2024 IPO market [The Philippine Daily Inquirer, April 28, 2024]
For the first time in more than a decade, a Philippine mining firm is going public. And while many are shying away from
the stock market due to a string of global uncertainties, OceanaGold (Philippines) Inc. (OGPI)—the second largest
producer of gold and copper in the Philippines and a unit of Toronto-listed OceanaGold Group—is ready to brave it all.
https://business.inquirer.net/456657/gold-miner-kicks-off-2024-ipo-market
Cavite, La Union LGUs adopt 4-day workweek [The Philippine Star, April 28, 2024]
Citing the warning of the state weather bureau that temperatures may reach “extreme danger” levels in the coming
months, a 7 a.m. to 6 p.m. work schedule will be observed from Monday to Thursday, Cavite Gov. Jonvic Remulla said
under Executive Order No. 19 issued on Friday.
https://www.philstar.com/nation/2024/04/28/2351037/cavite-la-union-lgus-adopt-4-day-workweek
COA calls out OSG over office rentals [Philippine Daily Inquirer, April 27, 2024]
State auditors have flagged the Office of the Solicitor General’s (OSG) “enormous” expenses that ballooned to around
P488 million in the last 16 years for the lease and repair of its two office and parking spaces in Makati City.
https://newsinfo.inquirer.net/1934150/coa-calls-out-osg-over-office-rentals
BIR official not ambush target – police [The Philippine Star, April 26, 2024]
The BIR official, with the rank of revenue officer IV, was in a sport utility vehicle when the shooting occurred along
Gregorio Araneta Avenue.
https://www.philstar.com/nation/2024/04/26/2350481/bir-official-not-ambush-target-police
Govt contractual, job order workers get a break [The Manila Times, April 26, 2024]
PRESIDENT Ferdinand Marcos Jr. has extended the validity of the contract of service (CoS) and job order (JO)
engagements of government workers whose contracts expire in December this year, Malacañang announced on
Thursday.
DMCI to buy Cemex Philippines for $305 million [interaksyon, April 26, 2024]
The deal is part of Cemex Asia’s wider divestment of its Philippine operations, including full equity in Cemex Asian
South East Corporation and subsidiaries APO Cement and Solid Cement, to DACON, DMCI and Semirara Mining &
Power <SCC.PS> for $660 million, minus debt.
Is it time for the Philippines to shift to a 4-day work week? [ABS-CBN News, April 25, 2024]
CSC Commissioner Atty. Aileen Lizada said the 4-day work week is allowed under a flexi work arrangement wherein
government employees must render 10 hours of work for 4 days.
https://news.abs-cbn.com/news/2024/4/29/30-bahay-naabo-sa-sunog-sa-barangay-la-huerta-para-aque-642
Two of the Philippines’ Biggest Hotels Are Expected to Open in Cebu and Davao This Year [Esquire, April 25,
2024]
DoubleDragon Corporation, one of the leading property developers in the country, is unveiling its two newest branches
under the Hotel101 chain in Cebu and Davao.
CV records ‘fastest growing economy’ among all regions in PH [SunStar Cebu, April 25, 2024]
Western Visayas followed Central Visayas with its growth rate at 7.2 percent, with Ilocos Region following closely at
7.1 percent. Cordillera Administrative Region ranked fourth with a growth rate of 6.9 percent, while Davao Region held
the fifth position with a growth rate of 6.1 percent.
https://www.sunstar.com.ph/cebu/central-visayas-fastest-growing-economy-in-philippines
Ayala Land gets shareholder approval for merger with 34 subsidiaries [GMA News Online, April 25, 2024]
Ayala Land Inc. (ALI) on Thursday secured shareholder approval to merge with 34 of its subsidiaries, as part of an
internal restructuring which seeks to simplify its ownership structure and reach “operational synergies” moving forward.
BIZ BUZZ: All aboard: Recto completes ‘dream team’ [Philippine Daily Inquirer, April 25, 2024]
Malacañang has finally announced the new members of the Department of Finance top brass.
https://business.inquirer.net/456179/biz-buzz-all-aboard-recto-completes-dream-team
NCR office space rental prices seen to drop as vacancy levels increase — JLL [GMA News Online, April 25, 2024]
In a press briefing in Makati City, JLL head of research Jan-Loven De Los Reyes said office rental prices are expected
to average P1,000 per square meter this year, down from the P1,005 per square meter recorded in end-2023.
SC: Immunity for ADB officers limited to official acts [GMA News Online, April 24, 2024]
The SC made the statement as it affirmed the dismissal of the complaint for damages filed by Matthew Westfall against
Maria Carmela Locsin and others who were members of the ADB screening committee.
Isla Lipana vows cooperation in DoJ probe amid SEC complaint [BusinessWorld, April 23, 2024]
AUDITING company Isla Lipana & Co. said that it audited solely for Maria Francesca Tan Group of Companies, Inc.
(MFT, Inc.) and did not provide services to the entity’s other subsidiaries.
Nueva Vizcaya folk challenge OceanaGold mine renewal in court [The Philippine Star, April 23, 2024]
Religious leaders and residents from Nueva Vizcaya filed a petition for certiorari before a local court to cancel the
mining agreement granted to an Australian-Canadian company, arguing it was made without proper consultation with
affected communities.
Authorities nab BIR ‘fixer’ syndicate [ABS-CBN News, April 23, 2024]
In a statement, the BIR said the syndicate used acknowledgment receipts with the forged signatures of high-ranking
BIR officials for “processing of documents,” “extension of compliance with Computerized Accounting System,” and
“processing and fixation of transfer” from one Revenue District Office to another.
https://news.abs-cbn.com/business/2024/4/23/authorities-nab-bir-fixer-syndicate-1027
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