What’s the difference between a Sales Invoice and an Official Receipt? To address this question, the following are some of the differences of sales invoices and official receipts:
|
Sales Invoice
|
Official Receipt
|
| 1. A sales invoice is a document requesting a payment on the sale made by a seller to a buyer. | 1. An official receipt is a document showing the payment received by the seller from the buyer on the sale made by the seller to such buyer.
|
| 2. For a seller, a sales invoice is an evidence of sale (transfer of goods or services) and accounts receivable from a buyer.
|
2. For a seller, an official receipt is an evidence of the receipt of payment of sale from a buyer and should be used to debit (increase) cash and credit (decrease) accounts receivable from such buyer. |
| 3. For a buyer, a sales invoice is an evidence of purchase and accounts payable to the seller. | 3. For a buyer, an official receipt is an evidence of payment of goods or services purchased from the seller.
|
| 4. Sales invoices are used when you sell merchandise or goods but payment is not yet received from customers.
|
4. Official receipts are used when you’ve already received the payment from customers on the merchandise or goods you’ve sold to them. |
| 5. Sellers of goods and merchandise are usually required by the BIR to use sales invoices or both sales invoices and official receipts. | 5. Professionals or sellers of services, like accountants, lawyers and doctors, are usually required by the BIR to use official receipts.
|
| 6. Sales invoices can be the basis for recording income and VAT sales for taxpayers using accrual method of accounting. | 6. Official receipts can be the basis for recording income and VAT sales for taxpayers using cash basis of accounting.
|
| 7. According to the BIR, a VAT registered person shall issue a VAT invoice for every sale, barter or exchange of goods or properties. | 7. According to the BIR, a VAT registered person shall issue a VAT official receipt for every lease of goods or properties and for every sale, barter or exchange of services. |
Victorino Q. Abrugar is a marketing strategist and business consultant from Tacloban City, Philippines. Vic has been in the online marketing industry for more than 7 years, practicing problogging, web development, content marketing, SEO, social media marketing, and consulting.
hi your article is so informative..and i want to ask this question…my busines was registered november 11,2013 and i was just curious if i will submit BIR form 1701Q and BIR form 1701..which due last april 15th 2014..my said its not necessary….thank you…
dahil naka regster ka sa BIR mag file ka palagi..
kung quarterly/monthly kasi pag ndi at ipapa close mo na yan babayaran mo 200pesos per page ng hindi mo na i-file..
pag ndi mo naman na close.. tuloy tuloy ka hihingian ng tax.. always file
hi, i would like to ask about the 2550M.
1. May nareceived ako P.O. and nagissue ako ng charge invoice dated june 10, 2013.
I will declared this sale in my June 2550M or 2550Q, tama ba?
2. Tapos pag nareceive ko ang payment next month at nag OR, idedeclare ko ba ulit ang sale na ito sa July 2550M o hindi na?
Salamat.
hi.. gusto q po sna malaman how to compute input & output tax.. pls.. thank you..
hi. when filing income tax, do i need all official receipts or sales invoices will do? also, what should a sales invoice indicate to qualify it as a valid document when filing an income tax return?
Hello po. ask ko lang on call. lang po ang asawa ko. finishing contractor halos bago lang p. may mga customer po sya na nanghihingi ng OR or sales. invoice. paano po ba o ano po ang una naming dapat. gawin. wala po kasi. kami idea kng need po ba muna magparegister sa DTI ganun po ba? sana pl kay makapansin ng tanong ko. salamat po
In terms of determining the withholding tax, who is responsible and does this line item exists in the sales invoice?
Is it correct to assume that when a supplier supply service he/she should issue a billing statement then at the time of collection an O/R to issue? While on goods should be a sales invoice then official receipt upon collection? A concessionaire, should it be a service or selling of goods business?