The Bureau of Internal Revenue (BIR) recently issued the following Revenue Regulations (RR) to implement the provisions of Republic Act (RA) No. 11976, otherwise known as the Ease of Paying Taxes (EOPT) Act:
RR No.
Subject Matter
3-2024
Implements the amendments introduced by the EOPT on the relevant provisions of Title IV – Value-Added Tax (VAT) and Title V – Percentage Tax of the National Internal Revenue Code (NIRC) of 1997, as amended (Tax Code)
7-2024
Implements Sections 113, 235, 236, 237, 238, 242, 243 of the NIRC of 1997, as amended by the EOPT, on the registration procedures and invoicing requirements
These Regulations shall take effect on April 27, 2024 [i.e., fifteen (15) days following publication in the BIR website on April 12, 2024]. Pursuant to Section 48 of the EOPT Act, taxpayers are given six (6) months from the effectivity of the implementing revenue regulations to comply with the amendment to Title IV on the Value-Added Tax and Title V on the Other Percentage Taxes of the Tax Code, as amended.
Among the salient provisions are as follows:
RR No. 3-2024
- Section 2. Amendments. The following words, phrases, or actions shall now be uniformly applied to the provisions affected under RR No. 16-2005 and its subsequent amendments:
(A) Gross Sales – The EOPT Act adopts the accrual basis of recognizing sales for both goods and services. All references to “gross selling price”, “gross value in money”, and “gross receipts” shall now be referred to as the “GROSS SALES”, regardless of whether the sale is for goods under Section 106, or for services under Section 108, of the Tax Code.
(B) Invoice – All references to Sales Invoices or Official Receipts shall now be referred to as “INVOICE”.
(C) Billings for sales of service on account – All references to receipts or payments which is the basis for the recognition of sales of service under Title IV (Value-Added Tax) and Title V (Percentage Tax) of the Tax Code, shall now be referred to as “BILLING” or “BILLED”, whichever is applicable.
RR No. 7-2024
- Section 2 Definition of Terms.
(1) (1.2) Non-VAT Invoice – it is a written account evidencing the sale of goods, properties, services and/or leasing of properties not subject to VAT issued to customers or buyers in the ordinary course of trade or business, whether cash sales or on account (credit) or charge sales. It shall be the basis of the Percentage Tax liability of the seller, if applicable.
(2) Supplementary Document – For purposes of VAT, Supplementary Documents (written document other than sales or commercial invoice) are not valid proof to support the claim of input taxes by the buyers/purchasers of goods and/or services.
- Section 3 (A). Invoicing Requirements for VAT-registered Persons.
(1) A VAT-registered person shall issue a duly registered VAT Invoice, for every sale, barter, exchange or lease of goods or properties, and for every sale, barter, or exchange of services regardless of the amount of the transaction.
(2) A VAT Invoice shall be issued as evidence of sale of goods and/or properties and sale of services and/or leasing of properties issued to customers in the ordinary course of trade or business, whether cash sales or on account (credit), which shall be the basis of the output tax liability of the seller and the input tax claim of the buyer.
- Section 8. Transitory Provisions.
Particular
Transitory Provisions
Unused Official Receipts (Manual)
Taxpayer to continue the use of remaining ORs as supplementary document – the phrase “THIS DOCUMENT IS NOT VALID FOR CLAIM OF INPUT TAX’ is stamped on the face of the document.
Taxpayer to convert and use the remaining OR as invoice – these documents shall be valid for claim of input tax by the buyer/purchases from January 22 to December 31, 2024, provided that the invoice to be issued bears the stamped “Invoice”. Taxpayers should obtain newly printed invoices with an Authority to Print (ATP) before fully using or consuming the converted Official Receipts on or before December 31, 2024, whichever comes first.
Reportorial requirement of unused OR to be used as Invoice upon effectivity of these Regulations – All unused manual and loose leaf Official Receipts to be converted as Invoices shall be reported by submitting an inventory of unused official receipts, indicating the number of booklets and corresponding serial numbers within thirty (30) days upon effectivity of these Regulations, to the RDO/LT Office/LT Division where the Head Office or Branch Office is registered, in duplicate original copies.
