Official receipts and invoices are among the documents that make your business legal and compliant to tax laws. If you sell goods to customers or if you provide services to clients, chances are, they will ask you for official receipts. What if you don’t have official receipts or sales invoices to issue to them?
Customers usually ask for receipts. Business customers will ask for receipts to document their expenses and support them when they claim these as deductions to their income taxes. Customers, who are employees or officers of a company, will ask receipts to also support their claims when they liquidate their expenses and ask for reimbursements. That is why some customers will hesitate in getting your services or in transacting with you if they will know that you don’t have an official receipt or invoice to issue.
If you are targeting big and corporate clients or if you want to increase the number of your customers, having official receipts and invoices for your business is a must. Besides, the Philippine tax code says that all persons subject to an internal revenue tax shall issue official receipts or invoices for each sale of goods or services valued at P25 or more, with some provisions according to Section 237 of NIRC, as amended.
So how do you get official receipts and invoices for your business in the Philippines?
Getting duly registered receipts or commercial invoices for your business is not a one-stop process. You should register your business with the Bureau of Internal Revenue (BIR) to have them. And before you can register with the BIR, you first need to register your business with other government agencies like the Securities and Exchange Commission (SEC) for partnership and corporation or with the Department of Trade and Industry (DTI) for single proprietorship.
To guide you, here are the basic steps to get your duly registered receipts and invoices:
1. Register with DTI or SEC
If your business is in the form of sole proprietorship, you have to register first your business trade name with the DTI. Your registered trade name is what you will use and what will appear in your official receipts and invoices when you register with the BIR. If your business is in the form of partnership or corporation, you have to register your business first with the SEC instead of the DTI. Remember that when you register with the BIR, your DTI or SEC registration is one of their requirements. Here are some posts to guide you on the processing and requirements of registering your business with DTI or SEC.
2. Get business permit from the Mayor’s Office
The BIR will also require a business to submit a Mayor’s business permit or at least an application for Mayor’s business permit before it will register your business. Thus, the second basic step is to apply for your business permit at the local government office (City or Municipality Office) where your business is located. To check the steps and requirements for registration with the LGU, you can read our guide on how to get Mayor’s Business Permit for your business.
3. Register your business with the BIR
If you’re already done with the DTI or SEC, local government office, and other offices that the BIR may require you to obtain registration, you can already start applying for your business registration with the BIR. The following are the basic requirements and steps for registering your business with the BIR:
A. Accomplish BIR Form 1901 (for sole proprietorship) or BIR Form 1903 (for partnership or corporation) and submit it, together with the required attachments, to the Revenue District Office (RDO) having jurisdiction over the registered address of the business establishment. The following are the forms and requirements to be attached with your application:
a. BIR Form 1901 (for sole proprietorship) or BIR Form 1903 (for partnership or corporation) – Application for Registration
b. Birth certificate or any valid identification showing name, address and birth date (for proprietors or individual taxpayers)
c. Mayor’s permit or application for Mayor’s Permit
d. DTI Certificate of Registration of Business Name (for proprietorship) or SEC Certificate of Incorporation/ Co-Partnership (for partnership or corporation), and “License To Do Business in the Philippines” in case of resident foreign corporation
B. Pay the Annual Registration Fee (P 500.00) at the Authorized Agent Banks of the RDO.
C. Pay P 15.00 for the Certification Fee and P15.00 for the Documentary Stamp Tax (in loose form to be attached to Form 2303).
D. The RDO shall issue the Certificate of Registration (Form 2303).
E. For corporations, the taxpayer must pay the Documentary Stamp Tax on the Articles of Incorporation as prescribed under Section 175 of the NIRC, on the 5th of the month following the date of issuance of said article (per RR 4-2000).
Aside from the steps and requirements above you also have to register your books of accounts (Journal / Ledger / Subsidiary Income Book and Subsidiary Purchases/Expenses Book) and have them stamped by the RDO where the business is registered. The BIR examiner will usually advise you the types of books and taxes applicable to your business upon briefing.
Apply for Authority to Print Receipts and Invoices
Now, to apply for your official receipts and or invoices, you should use BIR Form 1906 (Application for Authority to Print Receipts and Invoices). Here are the documentary requirements and steps to apply for authority to print your receipts and invoices:
a. Job order
b. Final and clear sample
c. Photo copy of COR/paid ARF of TP & Printer
d. Last booklet or previous ATP
e. Permit to Use Loose-leaf, if applicable
f. Printers’ Certificate of Delivery (PCD)
A. For taxpayers:
a. Accomplish BIR Form 1906 and submit the same together with the documentary requirements to RDO where the HO is located or concerned office under the Large Taxpayer Service;
b. Keep/File PCD and ATP copy duly received/issued by BIR for audit purposes;
c. Taxpayer’s branch office shall furnish its RDO a copy of the ATP issued by the appropriate BIR office having jurisdiction over the head office.
B. For the printer/supplier:
a. Prepare Printer’s Certificate of Delivery (PCD) in five (5) copies and submit to RDO where the place of business is located or concerned office under the Large Taxpayer Service within thirty (30) days from date of ATP and prior to delivery of receipts and/or invoices to taxpayer;
b. Furnish the taxpayer and its branches copy of the received PCD and approved ATP together with the taxpayer’s Sworn Statement within thirty (30) days from the issuance of PCD. One copy thereof shall likewise be submitted to the BIR Office that has jurisdiction over the head office of the printer.
Remember that you will need to look for a printing company to print your receipts or invoices. Some printing companies will help you on the process of applying for authority to print your official receipts or invoices with the BIR. If you are a service provider and doesn’t sell goods, you may only use official receipts. On the other hand, if you sell goods, you may be required to use both official receipts and invoices.
Finally, take note that the deadline to secure application for Authority to Print Receipts and Invoices is on or before the commencement of your business.
For more information and reference, please read the web page of the BIR on this subject matter.
Update: Under Revenue Regulations No. 18-2012, which took effect on January 18, 2012, all application of Authority to Print (ATP) will now be processed through the Online ATP System. Please check our discussion on this matter in our online forums.
Disclaimer: New and subsequent tax rulings, issuances and or laws in the future may render the whole or part of the article obsolete or inaccurate. This article was published for informational use only and is not provided to serve as legal, tax, or investment advice. Hence, we do not guarantee and is not liable for the accuracy or completeness of any information provided herein or in any outcome as a result for using this information.