Ever since our article about the new BIR ruling on Official Receipts and Sales Invoices came out, we received a lot of comments and questions goodsvsservicesabout their own businesses. One particular question that people ask is about which receipts are applicable for their business. To help answer these questions, we decided to put together a summary of all the types of receipts your business should have. If you do not have them, better get them now!

This article will cover three things. First, a quick summary of the different classification of businesses. Next, a complete listing of the types of receipts you should have for your business depending on your classification. Lastly, we will be sharing a couple of examples to help you identify which ones apply to you.

The Right Types of Receipts for My Business

What are the Different Classifications of Businesses?

There are three (3) basic classifications of businesses as I alluded earlier.

1. Businesses that sell products or goods.

2. Businesses that sell services.

3. Businesses that sell both products and services.

Businesses that sell products or goods are easily identifiable. They have a concrete item that you get in return for your money. A great example I can give right now is my iPhone. I am writing this blog post while drinking my coffee at Dunkin Donuts. I engaged in a trade using my money for a product, in this case, the iPhone.

Services are intangible. That means they cannot be seen or held, but you can definitely use them. Often, there is an output at the end but without the people who directly contributed to the service, it cannot occur. Take a look at your internet service provider (ISP); or, that shop you go to at Gilmore to have your laptop fixed; or, where I am right now, Dunkin Donuts. They are a good example of businesses that sell services.

Lastly, there are businesses that engage in both commerce of products and services. One good example is a trading and construction company. When they supply materials, that falls under products. When they enter into construction projects, that is a service.

Complete Listing of Receipts

Before I get into the details, please do not get confused with the definition of “official receipt.” It is not treated as something that is accepted because it is official. I wrote about it in the article explaining the difference between a sales invoice and an official receipt.

The only thing you have to remember at this point is Sales Invoices are used as proof of sales of goods or products. Official Receipts are used as proof of sales of services. These two are the only legal and valid types of receipts that is acceptable by the Bureau of Internal Revenue (BIR).

Classification 1: Businesses that Sell Products

There are two scenarios here. If you deal with (1) individual consumers only; and, (2) if you deal with other businesses.

Dealing with Individual Consumers Only

1. Sales Invoice

Dealing with Other Businesses

1. Delivery Receipt

2. Sales Invoice

3. Collection Receipt

If you are a local hardware store and you deal purely with individual consumers, the first scenario applies to you. You only need a Sales Invoice. However, if you have a store then you have clients, say, a construction company, the second scenario applies to you. How to use them, is another topic which we will get to in the future. In this situation, you need the three receipts as stated above.

Classification 2: Businesses that Sell Services

Same as classification 1, there are two scenarios here: (1) dealing with individual consumers, and (2) dealing with other businesses.

Dealing with Individual Consumers Only

1. Official Receipt

Dealing with Other Businesses

1. Billing Statement

2. Official Receipt

For example, if your business is a restaurant, then you only have to issue your customers official receipts. However, if, for example, your business is in software development, you have to issue a billing statement to indicate that you want your client to pay up.

Classification 3: Businesses that Sell Products and Services

1. Delivery Receipt

2. Sales Invoice

3. Collection Receipt

4. Billing Statement

5. Official Receipt

This is simple. If your business engages in both products and services, just combine the two. Just take note of using the right type(s) for specific sales.

Now that you know the right types of receipts for your business, check with your finance department or accountant to see what you have now. Do a quick assessment. If you lack something, act now. Get the right type of receipts now instead of waiting until you cannot collect from your client because they are requiring you these new receipts.

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One Comment

  • Janet Taganahan says:

    Hi,
    Please help me solve my problem, a little bit misunderstood in my case…First i work as accounting personnel in a private company, i have a problem to of our clients. Before,we dont have problem to collecting to them but since there`s a new BIR rules implemented,we got problem..The BIR issue us a Sales Invoice, Delivery Receipts & Collection Receipts since in our line of Business we are the Plastic Manufacturer,,,,But the problem is our clients ask an official receipts because they considered us, as a services `cause the cooler box (goods) we supplied to them has an customized w/their company logo. Is the customization considered as service? They considered us as both goods & services. What is the right receipt for us? Can we ask to the BIR to have OR not valid to claim input tax since we have Sales Invoice which is valid to claim input tax so that we can`t be double charging? Please help me solve my problem..

    Thanks

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