[UPDATE: September 16, 2013]: Clarified definition of Invoice in the Article.

A lot of business owners are still confused with the difference between an invoice and an official receipt (OR). The primary reason for this is that (wrong) information just gets passed around from one person to another. There are also a lot of people who pass along wrong information. In addition, Filipinos often do not place a high importance to terminologies very well. With the Bureau of Internal Revenue (BIR) implementing a new ruling on the receipts, it signals that they are becoming strict with their collection and taxation.

Sales Invoice vs Official Receipt

So, what is the difference between an invoice and an official receipt? Invoices, more specifically, Sales Invoices, are used for sales of goods while OR’s are used for sales of services. Sounds easy enough, right?

Before entering Full Suite, I was working at a construction company. My notion for a sales invoice back then was it was used as a billing statement. Common practice was to send an invoice to client to tell them that they have to pay up. Then, upon payment, that is when we give them an OR. That is, technically speaking, wrong.

Only when I asked our tax specialist did I finally understand the difference between them. Here are some examples to show the difference.

Example 1: Food

• When you buy food at a restaurant. They will give you an OR, because they sell the whole experience.It is not the food that you are paying for. Official Receipts are for services.

• When you buy your groceries and you ask for a receipt, they will give you a sales invoice.

Example 2: Construction

• When you buy at your local hardware. They will give you a sales invoice.

• But, if you have your house built by a construction firm, upon payment, you will receive an OR.

In both examples, there are different scenarios given but you receive different kinds of receipts. To reiterate, ORs are for sales of services, while Sales Invoices are for sales of goods.

The misconception I had before was due to a lack of understanding of the receipts and the law. There are other types of receipts, called supplementary receipts as what the Tax Law says. Examples of these supplementary receipts are billing invoices, delivery receipts, etc. These are what we were accustomed to referring as “invoice”. So when we want our clients to pay us, we ought to give them billing invoice or service invoice – not an invoice or a sales invoice.

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139 Comments

  • Nida says:

    May service invoice kasi kami dati pero ngayon pinalitan na ng BIR ng billing invoice. Pero nakalagay dun sa billlibg invoice na not valid to claim input taxes. So papano namin irereport yun sa BIR? Binigyan din kami ng Official Receipt para pag ginamit namin yung Billing invoice yun yung gagamitin namin para maningil, Paano kaya namin sisingilin yung service invoice namin dati? Kung yung OR gagamitin namin eh di doble na record nun. , ibig sabihin ba nun yung official receipt yung irereport namin sa bir.

    • Ariel Lim says:

      Thanks for the comment. May i ask first what do you do or what do you sell in your company?

      • Nida says:

        We are deal in construction. How we treat the Supply and Installation? Is it Sales Invoice or Official Receipt? Do we need to separate the Materials and Labor?

        • Ariel Lim says:

          No, you don’t need to separate the materials and labor. You can use Official Receipts for your line of business. There is no need for Sales Invoice.

  • Ariel Sadol says:

    can you please provide us the exact revenue regulations stating that an OR is required for sale of services and a sales/billing invoice is required for sale of goods, thanks,

    • Ariel Lim says:

      I am not sure if this was first talked about here (I’m not a lawyer) but you can look for Revenue Memorandum Order No. 3-2009, bottom of page 3 (amending the National Internal Revenue Code of the Philippines, Title IV (4), Chapter 2, Section 113, Invoicing Requirements).

      Hope i answered your question 🙂

  • Cindy Tipones says:

    What if we are in Services industry. We issued Service Invoice for transactions, after which a collection is made, we issued Collection receipt. Is a collection receipt same with official receipt? Because as far as the BIR is concerned, if a Sales Invoice is issued a Collection receipt should be issued for the collection of due. RR 12-2013 Letter H.please reply.thx

    • Ariel Lim says:

      Hi Cindy. No, a collection receipt is different from an official receipt (OR). A collection receipt is a supplementary receipt while the OR is a principal receipt. For your company, the BIR will look at the ORs. The service invoice would act like your billing statement. Then upon payment, you will issue an OR.

      Honestly, i can’t answer if it is required to issue a collection receipt for your company (read the RMO and it did not state it) together with the OR. But given that the BIR is becoming more strict on receipts, doing so will not hurt you

      So to sum it up, company issues client a service invoice. Client pays company. Company issues OR and Collection Receipt. Hope i got to answer your question.

  • Nanette Martinez says:

    Hi Mr. Lim,

    My confusion is this: Delivery receipt VS Sales Invoice. Is DR can be a source of Input Tax after a number of months? What if still unpaid for a year like I received goods October 2012, my seller use DR and I pay using check November 2013. But the company didn’t provide any invoices or receipts with my payment. Or if the seller use PR or AR only. Can I use my DR as source of input vat? when? Oct.2012 or 2013?
    Thank you.

    • Ariel Lim says:

      Hi Ms. Martinez, first thing’s first. I assume you are dealing with goods because you pertain to Delivery Receipts (DRs) and Official Receipts (ORs).

      To answer your question, no, a DR can’t be used as a source of input tax regardless of any number of months it has been issued. If you want to be able to claim any input VAT, it has to be either of the principal receipts (sales invoice and OR).

      I confirmed this with our tax specialist and he said that claiming of input VAT is ok anytime as long as it’s within your date of registration with the BIR provided that you have the right documents to support it – that means, Sales Invoices and Official Receipts (OR).

      If your supplier didn’t give you an OR and just issued you a DR, most likely that transaction was not properly recorded (against the law – non-issuance of receipt).

  • we are only issuing a collection receipt since it was what our head office had sent to us. then some of our clients were complaining that they want the official receipt. which is which?

    • Ariel Lim says:

      Short answer: Official Receipt or Sales Invoice. Those are the 2 documents that you should be issuing. Otherwise, that is tantamount to non-issuance of receipts (Section 264 NIRC).

      Long answer: Please get in touch with your head office. There are “complications” here. If we go technical, every revenue-generating branch should be registered as a branch and have its own set of receipts (you will know that by the TIN: it will have an extension, e.g. 214-123-456-001). That said, you are facing a risk there. You have to register your branch office (barangay clearance, mayor’s permit, BIR certificate of registration, etc.)

      If you are not registered, then you are suppose to be just an “extension office.” That means there are people working in that area, but doesn’t earn any income directly. Like us in our previous building. We are registered at the 2F. Then we grew and needed additional space. Some of us moved to the 4F. We still have to go through the whole process of registration except the additional receipts.

  • Rocel says:

    we are in a trucking business, the description of receipts/invoices approved by BIR are Sales Invoice and Collection Receipts. Our clients refuse to pay us because they want an OR not a CR.

    • Ariel Lim says:

      We have 2 concerns:
      1. About the trucking business
      2. Collection portion

      First, can you clarify what you mean by trucking business? Because according to the team, when we think of trucking business, you are like a forwarder of some sorts. So, you are rendering a service. Therefore, you should have an Official Receipt as your principal receipt.

      Anyways, to answer your question. You can use this to argue that what you have is enough (given point 1 is true):
      • RMO 18-2012
      • RMO 3-2009

  • Jen says:

    Hi.. We are corporation and Vat registered.. Bago pa lang kame, nagffile kame ng 2550M.. Ang receipt namen is Sales Invoice and Collection Receipt pero may note na “not valid to claim input taxes” pano kaya yun? yun na ba yung pinaka OR na irerelease namen upon collection of payment? Yun ba yung iffile namen sa BIR? Our company is selling goods po. Thanks..

    • Ariel Lim says:

      Hi Jen, thanks for providing the necessary information. Simple put, you have the right type of receipts with you (Sales Invoice for goods).

      Let me answer your question in a linear way, starting with collection receipt then the filing with the BIR.

      Yes, the collection receipts have the “not valid to claim input taxes” because the only receipts that are valid as sources of income / expense / input VAT / output VAT are the principal receipts: Sales Invoice and Official Receipts. The rest are called supplementary receipts. These include the collection receipts, delivery receipts, etc.

      When you sell something at a retail level, usually Sales Invoice would do. However, when you have corporate clients, the practice is issuing the Sales Invoice upon delivery. Then after the terms agreed, you get paid then you issue a Collection Receipt. Let me explain that process. This is a bit technical but we record a sale of an item or goods upon delivery to the client. So in both examples, you issue an SI on both retail and corporate examples. The only difference between the 2 is that corporate clients usually have payment terms (30 days, etc.)

      In your company’s books, you record the income using the SI details (date, amount, etc.). Then the payment terms run. After which, when they pay you, you issue a collection receipt to signify that you have already collected. It’s simply an acknowledgement of the payment. Technically, in accounting terms, best practice is to accrue income and expenses. Then the “cash” part is another story altogether.

      Then going to your other point, with this new move by the BIR regarding the receipts and invoices, they are becoming more strict with their collection efforts taxation. The text “not valid to claim input taxes” is their way to make sure that business owners who are not familiar with how to compute these stuff don’t make the mistake in recording improperly. I know this was a bit long but just remember this next point:

      Only principal receipts can be used as sources of revenues and expenses. They are Official Receipts (for sale of service) and Sales Invoice (for sale of goods). All other receipts supports and complements the OR and SI. They can’t be used for anything else.

      • Mai Cerna says:

        These are very useful insights. If I may ask, does BIR have a ruling to stamp these supplementary invoices with “FOR COLLECTION PURPOSES ONLY” or the text “NOT VALID FOR CLAIMING INPUT TAX” is enough already to show that these are really for collection purpose?

        Thanks to clarify.

  • jhoanna marie milado says:

    ..* hi i’m just really wondering, what’s the different between OFFICIAL RECEIPT from COLLECTION RECEIPT??before we’re using OR, then nun nag pa print kami ng new receipts, the printing press print us a copy of CR instead of OR kasi goods daw ang items namin, ang OR daw ay for services lang, how come yung suppliers namin OR pa din ang receipts?quite confusing po talaga..thanks

    • Ariel Lim says:

      Quick Answer: Official Receipts are for sale of services. Sales Invoices are for sale of goods. Nothing more, nothing less.

      Long Answer: You mentioned that you are selling goods, and the BIR told you you should have collection receipts (CR). Just want to doublecheck, you should also have Sales Invoices (SI).

      So, to answer your question, the difference between CR and OR are worlds-apart. Official receipts are principal receipts. It is the one being honored for every sale of service. It is also used as a valid source of expense (and input VAT) if you acquired the services of another individual or company. A CR, on the other hand, is only a supplementary receipt. It does not hold any value in the recording of revenues and expenses. They are only used as a supporting document to “acknowledge” that you got the cash.

      Technical Answer: In accounting, the practice accepted is the accrual method. Meaning, you record the revenue and expense as it happens, NOT when the cash is paid or received. Example, I am a hardware store with corporate clients. I have a 30 day payment term with my clients. I sell goods, therefore, i have Sales Invoices. Upon delivery of an order from a certain Purcahse Order, I issue a Sales Invoice (with details like company name, address, TIN, total amount, votable sale, vat, withholding tax, etc.). I also accompany it with a Delivery receipt (with details like item description, unit cost, quantity, amount). The company checks the DR with the actual items then signs off.

      From the hardware side, if there are no objections, the company already records that amount in their books as revenues. The goods were delivered, you issued a Sales Invoice. That’s a done deal. NOTE that you have not received any payment yet. So, after 20+ days, you followed up for payment, they told you you can pick up the check this coming Friday, you go there and bring a Collection Receipt. You get paid the check, sign whatever documents you need like a check voucher from them, you then issue the CR. Done deal. It’s an acknowledgement that you received payment.

      Documents to support your case if they insist they need an OR:

      • RMO No. 3-2009 –> Page 3 of 29, bottom of page, Section 113. Invoicing and Accounting Requirements…
      • RR No. 18-2012 –> Page 2 of 5, Section 2. Definition of Terms, Item 2. Principal Receipts / Invoices.

      Hope it helps!

  • Catherine S. Perez says:

    Hi, good afternoon,

    We have a veterinary clinic and a grooming center and at the same time involved in selling veterinary products like pet accessories to other stores like pet shops and vet clinics. My question is, can we use only the Official Receipts in our daily transactions inside the clinic, since we are in the sales services even if the customer purchase a dog food and other goods? Should I use sales invoice for my transaction outside the clinic?

    Thank you.

    • Ariel Lim says:

      No, you can’t use the Official Receipts for the purchases of dog foods, etc. It really has to be using Sales Invoices. We recommend that you check your BIR Certificate of Registration to see what is the nature of your business registered there, if it is just for services, please have it changed since you are offering both goods and services. After, have your receipts (sales invoices) printed.

      Then on the operations side of things, when they consulted you for their pets, issue an official receipt. If they bought stuff from you, like the dog food, cat food, etc., issue a sales invoice.

  • Romualdo Arciosa Jr. says:

    Hi, good day!

    I have a newly registered business engaging in Computer and ICT related products and services. The COR says TAX type (Percentage Tax – Monthly) which is normally the type given to a services type business. But I have also sales of goods (Computer units – desktops/laptops/netbooks/networking and communications equipments, etc.).

    Supposing I have a project for an Internet Cafe setup and installation for a certain individual client, and client says it is a “package deal” (computer units/accessories and LAN setup and System and games installation). So there will be goods and services involved. Should this mean I have to issue Sales Invoice for goods and OR for the services? Meaning I should have to request printing of SI and OR? Please shed a light on me on this situation.

    BTW, I’m still on the process of obtaining Receipts. Will the printing press has the say which of which receipts will be required for my business?

    Thank you very much.

    • Ariel Lim says:

      I asked our tax specialist regarding this one. He mentioned that in this case, it is ok to only issue official receipts. However, if in the future you will be selling individual items, we recommend you have them (Sales Invoices) printed now. As they say, it is always better to be prepared than sorry.

  • aisa says:

    hi good day,
    i’am working in a retail store ( boutique ) we sell shoes and apparel, energy gels etc.
    i just want to clarify if it is ok that we use a COLLECTION RECEIPT instead of OFFICIAL RECEIPT? little bit confuse lang po before kasi OR ang ginagamit namin. Then now they giving us CR kasi magkapareho lang daw yun…Anu po ba talaga dapat ang ginagamit pag retail store business OR or CR?

    thanks

    • Ariel Lim says:

      Hi Aisa. You are selling items / goods / products so you should be issuing Sales Invoices, not Official Receipts nor Collection Receipts. I recommend you take a look at your BIR Certificate of Registration (BIR 2303). Please take a look at the “line of business” area. If it said anything that that deal with goods / products (in this case it should indicate that), you should be issuing SIs. Take a look at this other article we have regarding Sales Invoices and Official Receipts.

      • aisa says:

        hi thanks for the reply, Actually were not using the OR for our transaction time to time, its because we have a POS in store for our sales transaction. it is just sometimes some of our customer are requesting it the OR for their reimbursement purposes. so,.can we use the CR?

        thanks 🙂

        • Ariel Lim says:

          I alluded this earlier (just not sure if in this article) but one of the sources of confusion is the term official receipt. See, technically, the principal receipts — Sales Invoices and Official Receipts — are official in a sense that they are the ones being honoured. That is why POS machines, i believe, say this is an official receipt.

          As for the reimbursement of your customers, and for your company as well, because you are dealing with goods, your “official receipt” is a Sales Invoice. They can’t use a collection receipt as an official document because their accounting won’t accept it as well.

          I haven’t seen a CR yet, but with the new BIR ruling on receipts, all the new receipts are already labeled with phrases like “valid source of input tax” or something to that effect.

  • Stephen says:

    am into made to order corporate uniforms (sewing) what are type of receipts ang kailangan ko ipa print? aside from OR. kasi other clients would ask us BILLING INVOICE together with DELIVERY RECEIPT.

  • Angel says:

    hi, we have franchised a gasoline station and about to start BIR processing and came across this blog, just to verify my understanding, for gasoline station – selling of goods, we need sales invoice vs official receipts? In the POS system, there is option to print receipt, is that automatically the sales invoice?

    • Ariel Lim says:

      Yes, you are selling goods. So you should be using a Sales Invoice. While the POS machine is issuing out receipts, that is not accepted in most cases. We are still under the manual receipts system, so that is what the BIR is looking at.

      I recommend you talk to your ‘franchisor’ about these details. They should be able to answer all these, and, i think, should be the ones guiding you through this process.

  • happy says:

    hi sir, would like to ask lang po/clear…we are in security business (sec. agency) before we had Sales Invoice and Billing Statement which the counter part for each was SI=OR and BS=AR (acknowledgement Receipt) now the printing press kung san kami nag pa print only gave us Billing Statement (BS), Official Receipts and Acknowledgement Receipts..

    Pano na kami maka singil ng Sales namin with VAT if walang Sales Invoice, are we supposed to make our own just so the client will see as reference for the amounts written on the ORs?

    • Ariel Lim says:

      Hi Happy,

      Sale of goods = Sales Invoices. Sale of services = Official Receipt.

      You mentioned you are in the security business, i.e. security agency. Definitely, you are selling the services. The principal receipt you should have is an Official Receipt.

      What your printer told you was correct: billing statement, official receipt, acknowledgement receipt.

      As long as these are all accredited, that is ok. Here’s how you apply them:

      • send billing statement to your client
      • after they pay, issue an OR and AR

      No need to bother with Sales Invoices as that is not the correct receipt for you.

  • alexis joyce says:

    Hi Sir, with regards to the question on reimbursement, can a sales invoice be valid as proof of payment, even at the bottom of it the total amount is labeled as total amount payable/due? Is it valid as acknowledgement of receipt of money or delivery of goods for which payment has been made?

    Thanks

    • Ariel Lim says:

      Hi Alexis, i’m sorry, but I am not sure if i understood your first question correctly. But i’ll try my best to answer.

      According to RR 18-2012, the Sales Invoice is a proof of sale between a buyer and seller. This does NOT mean that payment has been made. Let me elaborate a bit further. And i’ll just use the sale of goods example, since that was your question.

      In accounting, accrual method is the best and widely accepted practice. What that simply means is you record revenues and expenses as they happen, NOT when cash gets paid. One more important note here is that recording of a sale of goods is upon delivery. Recording of a sale of service is upon performance. Again, not minding whether you get paid or paid cash. (one “crude” analogy is using a credit card for your gas. You did not shell out cash, but expense on your part is made; on the other hand, gas station did not received cash but they record it as a sale already).

      So, answering to the best of my ability, Sales Invoice is the valid document for reimbursement of goods (OR for services, of course). But whether that was paid or not, that is another question. That is the reason why these new ruling already says that supplementary receipts be used as well. For goods, you delivered the items and use a delivery receipt. You give this over together with a sales invoice (remember, sale upon delivery of goods). That already serves are your “billing statement.” Once you collect, say after 30 days depending on your terms, you issue a collection receipt. These 3 – delivery receipt, sales invoice, collection receipt – should be all printed by an accredited supplier of the BIR and indicated in your ATP as well. Hope that helps! Let me know if i was totally off.

  • flor says:

    hi sir, in invoicing who is going to sign in the OR, is it the manager issuing the OR or the customer? i’m into restaurant business. I believe it is the customer since the statement here reads “received the above in good order & conditon.” thank you

    • Ariel Lim says:

      There are two details here i want to address. First, your question on who to sign and second, about the phrase “received the above in good order & condition.”

      First, the manager (or whoever is authorised by the companY) should be the one signing off the OR. Usually cashiers and managers are doing this.

      For your second question, can you attach send me snapshot of your OR? You can upload it then send me the link here. The reason why i wanted to take a look at that is usually, that phrase is in a Delivery Receipt or a Sales Invoice. We have Official Receipts here (the new ones) and that phrase is not there. We have dine at restaurants as well, asked for receipts and that phrase is not there as well. Could it be that you have a different receipt? or not the updated one?

  • lley says:

    I just like to ask. I bought an eyeglasses from EO and what they gave me is a Sales Invoice. I will reimburse it and one reqt of our company is there should be an official receipt. I asked for an official receipt and they also gave me one.. Im just wondering,is it ok to issue both?

    • Ariel Lim says:

      Are you asking on the side of EO if it is ok to issue both? If that’s the case yes. It’s ok — as long as they record that as a single sale , referring to that same eyeglass which was specifically sold to you. That means they are not double-booking or in violation of anything.

      Now, for your company’s reimbursement policy. I believe that initial receipt, Sales Invoice, is the proper one and not the Official Receipt. You purchased pair of eyeglasses. That is a good. And, for every sale of goods, a Sales Invoice is the proper type of receipt to be issued.

  • von says:

    hi Mr. Lim!
    we just started on a trucking business (sugarcane hauling from the transloading area to the mill site) and the sugar company is asking for our OR. this hauling is just seasonal (annual), like it will only last for 3-5 months..now the sugar central is asking for our OR and we don’t know what nature of business to put if we will apply for an OR at the BIR coz if we say trucking, the truck should be in yellow plate meaning “for hire” now our problem is our truck coz it’s not yellow plate and it’s not for hire, it is somehow private..so now, what other nature of business we can indicate that is nearly related with trucking? thank you!

    • Ariel Lim says:

      Hi Von. I’d love to help you out but that is not something we have experience with so we can’t recommend something.

      To help you solve your concerns, you might want to visit the BIR officer-of-the-day nearest you to explain your situation.

  • HI. Nagwowork kase ako sa archi firm, na nagrerender ng design and construction service. I was just wondering, kase kakaregister lang namen sa BIR if we need to register billing statement pa? kase db usually sa services katulad ng pinoprovide namen, uso ang installment sa bayaran?

    • Ariel Lim says:

      It is ideal to have both principal and supplementary receipts. In your case, ORs and billing statements.

      Regardless whether the payment/collection aspect is via progress billing, you’d still need that billing statement to trigger the start of your collection / billing process. It’s like saying you accomplished 40% already, and we are now billing you for 40%.

  • riqa says:

    Good day! If you have clients abroad, how do you give them the official receipt? Through mails? or just scan then send it online. Is it ok to do that? Thanks. We are an outsourcing company.

    • Ariel Lim says:

      Yes it is ok to do that. Actual mail and Email are both acceptable. That depends on what your client is asking for. What’s important is you issuing the receipts. You are liable for the tax laws here while they are liable for theirs. Here in the Philippines, the manual receipts are still what is being used. So the ORs has to be written off.

  • pieces says:

    Thanks so much for your information. :o)

  • sonia says:

    Hi,

    wala pa po akong resibo up to now, dealer po ako ng isang franchising business, pero direct po na nagbabayad un mga franchisee sa company. kailangan p rin ba akong mag apply ng receipt. maraming salamat.

    • Ariel Lim says:

      Hi Sonia! My question is how do you get paid? If you are paid via salaries, you do not have to get your own receipt. However, if you are earning through commissions only (like that of a real estate broker), you have to be registered with the BIR as a self-employed or mixed-income earner. You will have your own Certificate of Registration and own receipts.

  • janet taganahan says:

    HI,

    I have question between goods & services? In our Certificate of Registry our line of business is manufacturer of plastic products but i have a question regarding w/this because one of our supplier categorized us a services …we supply cooler to them @ we customized their logo…as we know we only supply goods to them but they were insisting that we are under services for the reason of we customized cooler w/their logo is it possible that we are really services…if this is considered as services, how we can apply for a billing statement , job order & official receipt? can i ask for a sample of billing statement & job order? i really need answer regarding w/this matter?
    thanks

    • Ariel Lim says:

      Hi Janet, from what you described, your line of business is selling products / goods. So the receipts for your business has to be the following:

      1. Delivery Receipt
      2. Sales Invoice
      3. Collection Receipt
      • hi,

        We are manufacturer of plastic products like cooler boxes, & at the same time we also customized cooler box w/company logo..Are we considered already as both goods & services. If this is the situation, What are the right receipts we gonna used?

  • louie says:

    hi,

    Good day. our business is engage i selling plants and doing landscaping services. We have a client that is demanding for an OR for their payment. We already issued a Sales Invoice as form of receipt for the landscaping services. Do we need to issue OR aside from the sales invoice issued? What supporting docs will we attach since we dont have a OR? We only have Sales Invoice.

    Thank you

    Louie

    • Ariel Lim says:

      Hi Louie. You sell plants and landscaping services. The receipts you should have are both sales invoices and official receipts.

      Your client is asking for the right type of receipt because you rendered services.

      We are coming out with another article next week that will explain this in detail.

  • Dester Magaya says:

    1. What is deferment of taxes?
    2. How does the deferment of taxes affect the business?
    3. What is the difference between zero rated company and vat-exempt companies?
    4. What is the taxes applicable to pensions and actuarials?
    5. Can the zero rated clients claim Vat?

  • Anxious says:

    I just read your article about “What is the Difference Between a Sales Invoice and an Official Receipt?” My father in law owes a lumber & hardware store, we use sales invoice but sometimes customers also asks for an official receipt. The only service we provide is to deliver construction items. Should we still be using official receipts or can we discontinue it? Thanks

  • Chixi yei says:

    what we are going to provide for our business which is our line of business is Contracting Services and Technical Consultancy. It is needed for OR and Sales Invoice?
    And my second question is that, is it applicable to use sales invoice for billing statement to the clients? then upon payment we will give an Official Receipt.

    Note : Our mode of payment is depending on terms if how many months to pay!

  • Anxious says:

    We have a lumber & hardware business and we are currently applying for printing of a new batch of sales & charge invoice. Now our printing press said that the BIR told them that we cannot apply for a sales & charge invoice unless either we change the sales invoice to cash invoice so that we can also have a charge invoice or apply for a sales invoice only and no charge invoice. I’m confused. Is there any difference with a sales invoice & cash invoice? We used to print for sales & charge invoice long before the new ATP ruling.

  • stanbul says:

    hi ariel travel agency kami, mejo confuse lang ako regarding bir form 2551M. Monthly Percentage tax.. Example we sell worth 50,000 worth of airplane ticket. so the client demands for an o.r., so when filing the sale 3% percent of 50,000 is 1,500… knowing that we only add up 1,000 for our service fee or mark up. Our businesss is selling services kasi agent kami. so we received large cash.. pero maliit lang naman commission doon. So example total gross receipt namin in a month is 1,000,000 so ang 3% nun is 30,000 pero ang actual na earn lang namin is 50,000… so parang msmalaki pa ibabayad kay BIR kesa sa natira sa aming 20,000 lang… hop u make my mind cldar with this. thanks

    • Ariel Lim says:

      I asked our tax specialist and he confirmed that how you presented the computation is correct. That is, 3% of sales is your percentage tax due. He did say, however, that the 3% can be used as deductible expense. I’ll get in touch with you offline to explain a bit more.

      • Rolly says:

        hi ariel, same travel agency business, the local bir assessed me last year as VAT on the basis of gross receipts on ticket sales. The ticket sales receipts were remitted to the airline net from the commission. I have already told the local bir that I should not treated as VAT Registered since my commission did not reached Php 1.9M, on the basis of the BIR forms filed during the year’s business operation and showing them also the computations with gross receipts multiplied by the percent of commission which resulted that i should be a nonVAT. I am confused Because of that still Official Receipt to be printed in which the issuance of OR will reflect the gross receipt to be remitted to the airlines. What should I do to correct this? Is it proper to change my COR into nonVAT? so that I can print supplemental receipts? thanks

        • Ariel Lim says:

          Hi Rolly, i got a bit confused with your comment. But you CAN request your COR to be changed from VAT to non-VAT but that would be very difficult. It’s easy to change the other way around.

        • rogie says:

          As a NonVAT, you should use your AR when collecting payments but you are required to ask your GSA to issue a receipt for your clients. Some travel agency won’t ask their GSA to do this thing because you do not want to disclose the hidden charges on the top of the regular price of your tickets. You have to avoid this so your clients would not declare you to the BIR as a payee.

  • erlindo says:

    hi ariel anu po ba requirement para makakuha ng official receipt gagamitin kasi for buy and sell ng electrical product

    • Ariel Lim says:

      Hi Erlindo, the primary requirement is that you register with the BIR to get the receipt. You can either register as a company or as an individual. You can start with that article I wrote. After, let me know what your thoughts are or search directly in our blog about the specific requirements. We already made articles about hot to register a corporation, etc.

  • Emmi says:

    Is it okay to include delivery charge in a sales invoice? Thanks.

  • Mike says:

    Hi, when we secured our updated receipts and docs, our BIR accredited printer printed our new Official Receipts with the “Not valid in claiming Input Taxes”…. I raised this concern since as far as i know, the OR is the document needed by paying clients to claim input taxes…. But the printer said this is strictly the format approved by the BIR… i have no issue about the layout, format or wordings… just that i find the “not valid to claim input taxes” fine print on the OR confusing and it looks kind of wrong.

    We are using this new set of forms already, so far our clients are not complaining but im still worrying that there might be a client – most especially the bigger corporations and conglomerates – who would refuse to accept our OR because of this typo-error on the fine print?

    Is this a valid concern? What happens if the accredited printer is confused? The sample was approved by the BIR … what if they missed that line on the OR too?

    Thank you.

    • Ariel Lim says:

      Hi Mike, yes that could happen. With the limited information i have, i can’t say who’s “wrong or right”. I am, however, on the assumption that you are a services company who is VAT-registered. If both those are true, then yes, the BIR printer got it wrong. If not, then there might be some more information i need here.

      If the above assumptions are correct, ask your printer to print out another set. You can argue that it is their fail and give you free printing of new sets; but i don’t think that will happen. You can choose to get another printer if they still don’t want to print the “correct” ones, but that would mean you have to look for another one and go through the whole process of applying for an Authority to Print (ATP), etc.

      One thing i am sure of, you won’t be imposed any penalties because you already complied with the initial one. So you are not covered in the BIR ruling anymore.

  • Mykel Garcia says:

    Sir Ariel,

    nasa forwarding company ako, so BIR required us for Official receipt coz we are providing services… After our transaction with the client, nagbibigay kami ng Statement of Account para kami makasingil, then after magbayad ng client saka kami mag-iissue ng OR… Sir ang statement of account is computer generated kaya di na niregistered sa BIR and nag-iissue naman kami ng OR after they have paid. ang Supplementary receipt po ba kailangan din iregistered sa BIR? thanks

  • Rolly says:

    hi ariel, same travel agency business, the local bir assessed me last year as VAT on the basis of gross receipts on ticket sales. The ticket sales receipts were remitted to the airline net from the commission. I have already told the local bir that I should not treated as VAT Registered since my commission did not reached Php 1.9M, on the basis of the BIR forms filed during the year’s business operation and showing them also the computations with gross receipts multiplied by the percent of commission which resulted that i should be a nonVAT. I am confused Because of that still Official Receipt to be printed in which the issuance of OR will reflect the gross receipt to be remitted to the airlines. What should I do to correct this? Is it proper to change my COR into nonVAT? so that I can print supplemental receipts? thanks

  • dyx says:

    Hello Ariel,
    A short query lang, how those cash receive from employees such as excess advances ? I noticed in my previous employer that they are using an OR for the receipt of cash. Please enlighten. Thanks.

    • Ariel Lim says:

      I am not sure what you are referring to, but unless it is a “sale,” don’t issue an OR. If what you mentioned are advances, then a provisional receipt might work for this. In addition, proper recording in your books as advances should also be made.

  • Connie Fermin says:

    Hi, we are in a Pre-press services doing lay outing of books, magazines and digital printing. The BIR told us that we can only use official receipt, the problem is we can not use it to bill our clients and some our clients are asking for a sales invoice so they could process the payment with us. Can we apply for a billing invoice or service invoice as supplementary receipt? which one? Can you give me a sample format? or do we have to include the VAT etc. thank you

  • Kaye says:

    Hi Ariel,

    Im starting a business now, but under single proprietor, had DTI applied and by Mid Feb to register at BIR, business nature is selling of goods, I’d like to be VAT register, can you enlighten me more, what are the documents to give to my clients SI and OR? And also can you send link further for those starting in terms of VAT regulations.
    Thanks

  • Kaye says:

    Hi again,
    What is the difference between cash receipts and OR?
    Thanks

    • Ariel Lim says:

      Cash receipts are supplementary receipts. Official Receipts is one of the principal receipts (apart from the Sales Invoice).

  • Grace says:

    Hi we are courier services, we issued Official Receipt then last month our client required us to issue Service invoice. Line of Business namin sa 2303 is “Courier Activities other than National Postal Activities, Other Business Activities, N.E.C”

    Do we really need to print Service Invoice ? I mean required po ba kami ?
    thank you po hope you couled help us 🙂

  • Chipo says:

    Hi Ariel,

    I find this issue very interesting as there’s a lot of confusions on this new Ruling specifically the RR-18 2012. I have few clarifications as follows:

    1) Service Providers – Principal Receipts is the OR, apart from that they are also required to print through the on-line ATP system the supplementary receipts say for example , trucking invoices, billing invoices, billing statements, statement of account to support whenever they bill their customers? Correct? Issuance of Billing Statement or Statement of Account not applied/printed thru the on-line ATP system is not valid?

    • Ariel Lim says:

      Hi Chipo, yes you are right. But there’s a caveat to that. Currently, the online ATP system is internal to the BIR, whereas it’s stated in the ruling that everyone can do apply there. So that means we really have to go through them if we want to have these receipts. But that is another story in of itself.

      So yes, you are correct. They are not valid in a sense that people misuse and confuse which is which. In another article I wrote, What Are the Right Types of Receipts for My Business, I mentioned the most basic permutation every company ought to know. But should your business require more types of receipts, then feel free to apply them to the BIR as well.

      Lastly, some companies are not that strict when it comes to supplementary receipts (i.e. billing invoices, delivery receipts, etc.) but we recommend to err on the side of caution and have them printed out via the BIR ATP system instead of crossing your fingers and wishing your clients are not strict.

  • sandy says:

    tanong ko lang po kasi po may customer po kami na nag ask ng officil receipt, tapos ang bagong binigay ng BIR sa amin eh yung collection receipt and sales invoice…panu po b namin ipaliwang sa customer na yun yung bagong ng BIR sa amin..sinabi naman namin na ang or is for services lang pero daw kasi ayaw e approved nung sa department nila kasi yun daw yung sabi sa kanila na or…panu po e expalin ng mas maintindihan nila?

    • Ariel Lim says:

      Sandy, you are correct so you do not have any problem or issue with the BIR.

      Now, to resolve your customer concern, there are 2 ways to go about this. One is an easier way, which is to provide information in the right way; while the other one means you going the extra mile to resolve the concern.

      First, the easier way, is to provide education material to that client(s) of yours saying that the primary receipt for sale of goods is the Sales Invoice while the sale of services is Official Receipt. We wrote an article about What to Do If My Client Refuses to Pay and What is the Difference Between a Sales Invoice and an Official Receipt, and I know it’s not directly applicable, but you can find the documents and regulations within the article to support your claim. You can even have them go to our blog to read up on it.

      The second one is to request to have your printer amend your ATP to include an official receipt. Just mentioned that your client(s) are requesting for it. AND mention to them that you want to add the phrase “NOT VALID FOR USE OF INPUT TAX” or something equivalent. That way, you are still on the “right” and you will not get in trouble for issuing an official receipt because you should have been issuing sales invoices. What this means is you incur additional costs (for printing, time for filling out an additional receipt, etc.) but you put at ease the client. Of course, i’ll assess my relationship with that client first if it warrants this action. Otherwise, i’d go with the first one.

  • sandy says:

    manufacturer po kami…tanong ko lang po kasi po may customer po kami na nag ask ng official receipt, tapos ang bagong issue ng BIR sa amin eh yung collection receipt and sales invoice…panu po b namin ipaliwang sa customer na yun yung bagong issue ng BIR sa amin..sinabi naman namin na ang OR is for services lang pero daw kasi ayaw e approved nung sa department nila ang collection receipt kasi yun daw yung sabi sa kanila na OR daw dapat…panu po e explain ng mas maintindihan nila?please advice..thank you

  • Danielle Royce Brandon says:

    Hi, we’re new in a trading business. Nag register kami sa BIR nung December 14, 2013 but nag open lang kami nung January 2, 2014. Can i still claim for my input taxes on December kahit no sales pa that time? I didn’t include it sa filing ko ng VAT remittance this january, pwede ko pa ba siya iclaim next month? thanks.

    • Ariel Lim says:

      Yes, you can claim it next month. You won’t have any issue with this as long as everything is properly documented and the claim for input taxes are valid.

  • Clark says:

    Hi Ariel, I read most of the thoughts and I’ve learned a lot. Thank you so much.

    By the way, I’m a new accounting officer at the newly founded corporation, a mini factory services because we assemble raw materials from Korea at the same time wholesaler of blinds and curtains, After the product is sold, we gave free installation also. I’m also a fresh graduate but with experience during my school years. I just confused about what the old officer told me about this matter. “The amount recorded in the OR should also be the amount put in SI and CR”.I was clarified from the answers you mentioned above but not satisfied regarding this matter. Is it be the same amount or not necessary.

    • Ariel Lim says:

      Thank you for your encouraging words. Appreciate it.

      May I ask what do you mean by the last part you mentioned? Why do you have Sales Invoices and Official Receipts? Can you explain your process?

  • Clark says:

    We sale goods to our dealers causing SI, and sales to ordinary costumer with free installation causing OR. Am I right? so I mean is that if I issue OR for example to ordinary costumers, should I also issue a SI to them to tally with the OR?

    • Ariel Lim says:

      Hi Clark! First, what you are doing is correct. SI for sales of goods to dealers and OR for sales to customers (with installation).

      Next, I spoke with our tax special it regarding your concern. He mentioned that issuing SI to the customer is also valid. But for recording purposes, the OR will prevail. What you can do to avoid confusion is you can probably indicate a note in the SI stating this is in reference to OR#12345.

      • Clark says:

        So, you mean sir that I can issue both at the same time?

        Here’s another scenario. I hold the accounting record of both the mother factory and one of its dealer. Once this dealer got sales, we issue SI to its costumers. And the factory issue OR to this dealer. Because all the products and installations serves to the costumer are sustained by the factory.

        In case when a costumer ask for OR, we issue OR from the factory. But the sales was recorded in the dealer’s book, in full amount, because they are the one who got the client. And the only sale of the factory in this transaction is the cost of product used. In BIR reporting, we all know that the amount indicated in the receipts will prevail. How could I fix such thing that would not trouble both the factory and dealer’s accounting record in the future? Both are VAT registered.

        • Ariel Lim says:

          Hi Clark, this is a bit complicated and would takeaway from the primary topic of the article. May I suggest that you request a free consultation instead.

  • Clark says:

    Any reply sir?

  • Mercy says:

    I am working in a PEZA Registered manufacturing company. One of company’s incentives is Zero Rating on local purchases of goods and services. Some of our suppliers of goods/materials don’t want to sell us on a zero rated basis. We need the materials for plant operations and maintenance. Just to complete the purchase transaction the Supplier still issue Sales Invoice with Vat Computation. (The purchases still includes 12% Vat)
    Question: Can the company (PEZA-registered Company) claim the Input Vat on the transactions with Vat computation on SI’s though the company’s purchases should be Zero Rated? Can you give us BIR Regulation if the company can or cannot claim the Input Vat.?

    Thanks

    • Ariel Lim says:

      Yes you can claim the Input VAT on the returns being filed to the BIR. However, because you are selling zero-rated sales, that means you do not have Output VAT. Therefore, your input VAT will only pile up as credit. I spoke with our tax specialist and he mentioned that the only way you can use it is when you retire from PEZA, which, in turn, will remove the zero-rated incentive. So any succeeding sales, you will be required to put some VAT (Output), then that is the time you can use the input VAT that you have piled up throughout the course of the business.

      One thing to note here is that you can actually demand the supplier (especially if they are a regular supplier) to sell at zero-rated because you have the proper documentation from PEZA.

      Lastly, when you carry input VAT, please make sure that you report it regularly and carry it over month by month. Otherwise, it might not get recognized by the BIR when the time comes that you will claim it. Hope I answered your questions.

      • Mercy says:

        Thank you so much Sir Ariel for your kind answer..

        Yes, most of the Sales Incurred were Zero Rated Sales.
        The claimed (accumulated) Input Vat can still be used as payment for Output Vat on Local Sales of Vatable product/s. The Company (Peza Registered) is allowed 30% (of total sales) local sales.

        God Bless!!

  • marco segura says:

    hi ariel,
    we are a retailing business and at the same time rendering services.
    BIR initially issued us atp for official receipt but then our corporate clients , when purchasing goods from us, ask for sales invoice. So we apply for SI, but BIR issued us with Billing statement receipt.
    My question are:
    1. can we use billing statement receipt for our client to process their payment for us?
    2. upon receiving the payment, we can use official receipt than SI since we are also selling goods?
    3. since BIR issued us with atp for billing statement and we assume that it will be source of tax, which one (OR or billing statement) should be used for declaration of sale upon receipt of payment?
    4. What is the right procedures to make proper declaration from billing statement til official receipt as far as declaration of sales on account book?

    many thanks and more power to you

    God Bless!!

    • Ariel Lim says:

      Hi Marco,

      I think most of your questions will be answered by another article I wrote about what should be the right type of receipts for your business. Hope you find time to read it.

      One thing I want to highlight from your comment is that the billing statement is only a supplementary receipt. That means it is not to be used as a documentation for your revenues and expenses. Only Official Receipts (for sale of services) and Sales Invoices (for sale of goods) are recognized and treated as valid documents.

  • zil says:

    hi sir ariel,

    im a small scale electrical contractor kumbaga bahay bahay lang with a business name registration certificate from dti,malaking tulong sa akin yung business name ko kasi they issue check not in my name but in my business name..diba original registrationn certificate from dti yung hahanapin ng banko pag mag encash ka na.anyway my client kasi ako ngayon na closed deal na, ang problema di nya irelease yung d.payment kung di ako mag issue ng or.ang tanong ko po ano ba ang first step para magkaroon ako ng or,dami kasi hiningi sa kin requirements s cityhall,ang sabi ko services ang business ko at ang sabi kumpletuhin ko muna ang mga yun.ganun po ba talaga yun?

    thank you in advance

    • Ariel Lim says:

      Yes. That is the process. Generally, there are 4 agencies that you have to go through in order to complete the process. What you did was only the first step in the whole registration process.

      You can find the next step and requirements in the articles I listed here below, and they must be accomplished in that specific order.

      1. Barangay
      2. City Hall
      3. BIR

      Hope these articles help you in completing your registration.

  • Nick says:

    Hi Mr Ariel. I read this post and the entire comments, and you are actually answering all visitors’ concerns. This is a great blog, and I hope you continue your good work.

    Anyway, I also have several questions:

    1. Let’s say I have an input VAT going back December 2013. Can I still claim this, given that I already filed the 2550Q last January which includes all transactions for December 2013? How can we properly record this transaction, and to which 2550 we’re going to include it?

    2. Is there a limitation to the type of transactions we can claim in input VAT (eg. phone bills, restaurant services, assorted groceries, gas)? Or can we claim it all provided that our purchases have a corresponding registered OR/SI?

    3. What if the name indicated in the OR/SI is in the name of the owner/employee (eg. mobile phone bill) which is also being used in the course of the business? The reason behind this is that it’s hard to apply for a corporate postpaid account, and it’s much cheaper to have it under the owner/employee name). Is it allowed to be claimed in the input VAT of our company?

    4. Meralco VAT is not 12% exact of the VATable, and the name indicated is the building’s company name. Can we also claim the input VAT of this transaction?

    Thank you in advance!

  • Francis says:

    Ariel,

    Please give a sample format of a VAT Official Receipt. The one shown above does not specify the quantity, unit cost, etc. as required by VAT law/regulations.

    Thank you.

  • Boy Pascual says:

    Hi sir!

    meron po akong gas station, and im issuing sales invoice, some demands for OR. but i dont have it. nagagalit sila bakit hindi OR ang binibigay namin. my question is yung sales invoice ba good as official receipt? how can i explain it to them? Thanks!

    • Francis says:

      The main business activity of a gas station is filling fuel to vehicles which is a service, so issue official receipts (OR) immediately after payments are done. If a customer buys a can of engine oil only and does not want it filled into his/her car engine, then it is not a service, so an issue invoice for its payment.

      • Francis says:

        The main business activity of a gas station is filling fuel to vehicles which is a service, so issue official receipts (OR) immediately after payments are done. If a customer buys a can of engine oil only and does not want it filled into his/her car engine, then it is not a service, so issue an invoice for its payment.

  • roy says:

    sir ask lang po, im a livestock dealer at naga lechon pig din, sales invoice ang ibinigay ng bir sa amin pano po yan official reciept ang hinihingi ng customer kasi cash nman daw ang bayad nila, pwede na ba ang sales invoice lang?

    • Ariel Lim says:

      Yes, sales invoice is the right type of receipt to be used. You can refer to this article of ours for what revenue regulations that can help you support your case.

  • roy says:

    sir d b pg government transactions official receipt tlaga ang ggamitin dahil required ng coa, official receipt attach to the voucher, sa amin may gustong kumuha para sa livelihood goat dispersal, anong gagawin namin, hindi pwede ang sales invoice.

  • Lizette says:

    Hi I will be starting to pay my equity to a home developer i just want to know how can i check if the receipt that they’ll provide to me is valid one

  • Lia says:

    Hi! I am a NON-VAT registered seller of goods. I have a Sales Invoice. It says not valid for input. Is there any other receipt that I need to issue?

  • gene casinillo says:

    hi sir , i venture in trucking service, what receipt should i first issue ?

  • Kathleen says:

    Hi Ariel, copmany sells bathroom fixtures and toilets. With the new ATP ruling, our previous accountant who we commissioned to process the new ATP for the company only provided us the Sales Invoice. In this case, is it correct that we do not need to have Official Receipts printed? The Sales Invoice is enough and we won’t incur penalty from BIR for not printing Official Receipts?

    The previous accountant also did not provide us a copy of our ATP, does this mean that we will have to pay penalty of P1,000?

    Thank you and would appreciate your advice.

    • Lester Allan Alforque says:

      While it is true that Sales Invoice is the primary document being issued for sales of goods this is as well the valid source of claiming taxes by the BIR. On the otherhand, Official Receipt applies only to sale of services though you should issue supplementary document to support the receipt of payment which is the Collection Receipt, as should be shown in your ATP. With the case that your ATP went missing, you may request same from BIR where you applied for, evidence by affidavit of loss, fill up BIR Form 1905 and pay corresponding assessment to be determined by the Bureau. Note: other requirements may further be requested by BIR upon request for replacement of lost ATP.

  • Thomas says:

    Hi, pano po yung trust receipt? issue namin sa customer trust receipt kasi utang.
    anu po yung issue namin sa customer pag nag bayad na official receipt? In BIR reporting, anu yung ipapkita? tnx

    • Lester Allan Alforque says:

      What you can issue is the Official Receipt since this is not a form of goods. But for BIR purposes of recognizing your income, it should be limited to the service fees/interest that you charge to your client, the principal amount is just an offset of the receivable in your records.

  • Ms Jen says:

    Hi Sir,

    Were on a retail gasoline station, as i read pag sales of goods po Sales Invoice po pero pag sales of services OR naman, Pero paano po ang category kung may inhouse creditors po kami? Ano po ba ang dapat namin iisue? Sales Invoice for the sales of goods or OR for the service we rendered them since they are our Creditors? confusing po kasi kung babayaran na po nila yun utang nila na gasoline? Thank you

    • Lester Allan Alforque says:

      Based on the foregoing situation, we can apply the so called “Substance over Form” concept in recording transaction for accounting, your business is in the sale of gasoline but since you have in-house creditors in place which service substantiates all. Hence, service shall prevail and OR should be issued accordingly.

  • Hi Sir,

    I have just registered a Trading Company that sells semiconductor components to companies in and out of the PH. Though, have yet to register in BIR. In my previous experiences from companies outside PH, before the delivery/shipment, we issue a Proforma Invoice for the advance payment collection. And during delivery, we include the Sales Invoice. My question is, does the BIR also provide Proforma Invoices or can this be just generated by myself? Also, for the Sales Invoice, can we use our own system generated Invoice to include in the delivery and Airwaybill? Thank you.

    • Lester Allan Alforque says:

      Issuing a Proforma invoice is definitely fine while actual delivery hasn’t take place, but on the actual delivery Sales Invoice should be issued as your business is in the trading side. As to the Proforma Invoice format, you may use your format or system generated. Remember, Sales Invoice is your primary document for BIR and this is also the basis of your clients in claiming the VAT on their purchase. Hence, at all instances where you generate income, it should be supported by the issuance of Sales Invoice and payments received should be issued of Collection Receipt.

  • Juan Dela Cruz says:

    Pwede po ba magtanong. Ang provisionary receipt po ba and delivery receipt ay taxable din? Or basis ng tax sa bir? Thanks.

    • Lester Allan Alforque says:

      As basis of recognizing both income and expense, the document that serves valid for BIR purposes are only the Official receipt (for services) and Sales Invoice (for goods). Thus, Acknowledgment Receipts and Delivery Receipts are not and very rare they will be allowed as a source document for recording income and expense in your accounting records.

  • […] Another question posted in the article What is the Difference Between a Sales Invoice and an Official Receipt? […]

  • Reginald Guieb says:

    Hello,

    Salamat po sa inputs. Tanong ko lang po itong article na to ay applicable lang dito sa Pinas? kasi bago ko mabasa itong post mo eto ang una kong nabasa na kung saan lalo akong nalilto. please see link : http://keydifferences.com/difference-between-invoice-and-receipt.html

    • Ariel Lim says:

      Hi Reginald! No, that article doesn’t apply to us here in the Philippines. This article that we wrote contains everything you need to know. If you sell goods, your “official receipt” is a sales invoice. If you sell services like consultants, you’re “official receipt” is an official receipt.

      If you do both, like some IT companies who sell computers and offer after-sales repairs, they should be using two different kinds of receipts. Hope this helps!

  • william norvin says:

    good day po. im with a fuel station business.ive read all articles/comments mentioned herein sir but still a bit confuse. we have po customers, when the customer gets fuel we issued a charge sales invoice because they are under terms for 30 days. after the due date, we collect and issued them a collection receipt. two of our po customers refuse to received the collection receipt, they demanded for an official receipt. can you please give me an idea on how to deal with it and explain to them in lay man’s term so that customers will also not get confused with the current bir system. thanks for the assistance sir

    • Ariel Lim says:

      Hi Willian,

      You may want to write them a letter explaining that the sales invoice is a legal and valid receipt for your line of business. Since you are selling goods (fuel), you can explain that that is the receipt that you have. You might want to look at BIR RR 18-2012 section 2(or any related posts, like BIR internal revenue code, etc.) to show them that a sales invoice is different yet a valid principal receipt.

      The other way to look at this is do you have an official receipt? or only a sales invoice? Because if you have one, then you can issue that. However, in recording that as a sale internally, you will have to note that the OR is the sale, not the invoice. And you might also want to get that invoice too, as proof that you only issued a single proof of purchase; otherwise, you might get audited for 2 transactions but only recorded it as one.

      Please note that this is not legal advice.

  • steph says:

    Hi,

    What receipt do I need to use for a travel agency business? I am confused with sales invoice and OR.

    • fullsuite_poaanq says:

      Are you selling goods or services?

      Only you can answer that. Look at the examples in the article to determine which category you fall into.

  • Criza says:

    Good eve sir

    Ang basis po ng b.ir for taxes ay un o.r po db if services.. engaged ako sa catering services.. bgo lng pp pg cater ko s govt agencies mtgal po ang payment nila.. san ko po b dapat ipasok un sales tax sa date of services or date of payment. Scenario: october 2016 sales pero payment date ay january 2017 n po… i already filed un s october percentage tax ko even wihout o.r…..
    I think i have problem with this…i gave d govt agency a billing statement.
    Should i get from the b.ir a registered service ivoice for the recording of my sales tax??

    • Criza says:

      Un o.r date po ay this january na pero sales KO xa ng october 2016 p.. MATGAL KC PROCESSING NG GOVT AGENCY S PAYMENT..

    • fullsuite_poaanq says:

      Acdg to the accepted methodology in accounting — the accrual system — revenues for services should be recorded when the service was rendered. So if october 2016, regardless of payment, that’s when you record the sale (and the corresponding tax).

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