Invoicing and Record Keeping Seminar.pdf

this is a bir compliance requirements

1. BIR COMPLIANCE
FEBRUARY 26, 2021
CLTA & Co.

2. DISCUSSION OUTLINE
I.Introduction of the Team
II.Compliance Requirements on Tax Mapping
III.Bookkeeping and Recordkeeping Requirements
IV.Invoicing Requirements
V.Encoding of Purchases and Sales
VI.Filling Up of Books of Accounts
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4. A. DISPLAY OF COR AND REGISTRATION
FEE AT A CONSPICUOUS PLACE (RR 7-2012)
►The original copy of Certificate of Registration and duly validated
Registration Fee Return shall be posted at a conspicuous place in
the principal place of business and at each branch and/or facility in
a way that is clearly and easily visible to the public.
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5. INFORMATION CONTAINED IN THE
CERTIFICATE OF
REGISTRATION (RR 7-2012)
Name of the taxpayer;
Registered/Residence Address,
whichever is applicable;
Business /Trade Name;
Taxpayer Type;
RDO Code;
TIN including the Branch Code
extension number;
Date of registration and
generation/issuance of COR
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6. ANNUAL REGISTRATION FEE
(SEC. 236 OF THE NIRC)
An annual registration fee in the amount of P500for
every separate or distinct establishment or place of
business shall be paid upon registration and every year
thereafter on or before January 31 by every person
subject to any internal revenue tax.
The registration fee shall be paid to an AAB located
with the RDO, or to the revenue collection officer, or
duly authorized treasurer of the city or municipality
where each place of business or branch is registered.
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7. B. MUST ISSUE RECEIPT NOTICE
(RR 10-2019)
•Persons required to issue sales/commercial invoices and ORs under existing
rules shall post a notice in their places of business, including branches and
mobile stores, in such area conspicuous to the public.
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8. LGU REQUIREMENTS

9. 2. FIRE SAFETY AND INSURANCE CERTIFICATE (FSIC)
3. OCCUPANCY PERMIT (FOR LESSEE)
4. SANITARY PERMIT

11. KEEPING OF BOOKS OF ACCOUNTS
(SEC. 232 OF NIRC, AS AMENDED)
•All corporations, companies, partnerships or persons required by
law to pay internal revenue taxes shall keep and use relevant and
appropriate set of bookkeeping records duly authorized by the
Secretary of Finance.
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12. TYPES OF BOOKS OF ACCOUNTS
(RMC 29-2019)
The Bureau of Internal Revenue (BIR) allows registration of three (3) types
of books of accounts:
►Manual books of accounts
►Loose-leaf books of accounts (with Permit to Use)
►Computerized books of accounts (with Permit to Use)
All entries in the manual books of accounts shall be handwritten.Printouts of the accounting records
pasted/glued/inserted onto pages/sheets of the registered manual books bound books of accounts are
prohibited and subject to penalty pursuant to existing revenue issuances.
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13. KEEPING, MAINTAINING AND
REGISTRATION OF ACCOUNTS (RMC 29-2019)
►In lieu thereof, Books of Accounts of new registrantsshall be registered within 30
calendar days from the date of business registration.
►The manual books of accounts shall be registered before the deadline for filing of
the first quarter income tax return or the annual income tax return
whichever comes earlier.
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14. REGISTRATION OF MANUAL BOOKS OF ACCOUNTS
FOR PREVIOUSLY REGISTERED TAXPAYERS (RMC 82-2008)
►Timing:When the pages of the
previously registered books have all been
already exhausted
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►Venue:RDOs where the place of
business is located or concerned office
under the Large Taxpayers Service for
approval and registration.

15. KEEPING, MAINTAINING AND
REGISTRATION OF BOOKS OF ACCOUNTS
(RMC 29-2019)
Registration of Books
►Timing:30 days from the close of taxable year
►Format:In electronic format
►Venue:RDO/LTAD/ELTRD/LTD-Cebu/LTD Davao
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16. PRESERVATION OF BOOKS OF ACCOUNTS AND
OTHER ACCOUNTING RECORDS (RR 17-2013)
All taxpayers are required to preserve their books of accounts, including subsidiary books
and other accounting records for a period of 10 yearsreckoned from the day following
the deadline in filing a return, or if filed after the deadline, from the date of the filing of
the return, for the taxable year when the last entry was made in the books of accounts.
Other accounting records includes the corresponding invoices, receipts, vouchers,
returns and other source documents supporting the entries in the books of records.
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17. KEEPING OF BOOKS OF ACCOUNTS AT
THE PRINCIPAL PLACE OF BUSINESS
(SECTION 20 AND 21 OF RR V-1, AND RMC 29-2019)
►All books, registers, records, vouchers and other supporting papers and documents
prescribed by the BIR, and other records kept by the taxpayers shall be preserved
intact, unaltered and unmutilated.
►They shall be kept at all times in the place of businessof the taxpayer, who shall
produce them for examination or deliver them or any them for inspection outside of
his/its place of business upon demand of any internal revenue officer.
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19. INVOICES
•Purchase Order
•Delivery Receipt
•Billing Statement

20. INVOICES
•Sales Invoice
•Collection Receipt
Billing
Statement

21. INVOICES
•Contract
•Provisional Receipt
•Official Receipt

22. APPLICATION FOR ATP
REQUIREMENTS
►Form 1906
►Photocopy of Certificate of Registration
►Annual Registration Fee
►Sample invoice/receipt
►Job Order
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23. ISSUE DULY REGISTERED RECEIPTS
Section 113 of NIRC and RMC 2-2014 on Source Documents
►Strict observance on Issuance of Sales Invoice and Official Receipt
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24. ISSUE DULY REGISTERED RECEIPTS
►ORs/SIs/CIs –Content
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25. CLTA & Co.

26. CLTA & Co.

27. CLTA & Co.

28. CLTA & Co.

29. Section 237 of the Tax Code, As Amended
►All persons subject to an internal revenue tax shall, for each sale or transfer of merchandise or for
services rendered valued at P100 or more, issue duly registered receipts or sales or commercial
invoices, showing:
►Date of transaction
►Quantity
►Unit cost
►Description of merchandise or nature of service
►If for rentals, commissions, compensation or fees
►Business style
►Address
►TIN, if VAT registered customer
►Must be prepared at least in duplicate
►Electronic receipts or sales or commercial invoices shall be
subject to rules and regulations issued by the
Secretary of Finance
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30. INFORMATION CONTAINED IN VAT
OR/INVOICE
Q:How is the VAT presented in the receipt/invoice?
A:The amount of the tax shall be shown as a separate item in the invoice or receipt.
Sample:
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31. COMPUTATION OF VAT
•When a VAT invoice or official receipt is issued without specifying the amount of VAT, the
same is presumed to be inclusive of VAT.

32. SUBSTANTIATION ISSUES
Consequences of Issuing ERRONEOUS VAT Invoice/OR (Sec 113 of the NIRC):
A.Issuance of VAT Invoice/OR by a NON-VAT Person
1.The Non-VAT person shall be liable to:
►the percentage taxes applicable to his transactions;
►VAT due on the transactions without benefit of any input tax credit; and
►a 50% surcharge
2.VAT shall be recognized as an Input Tax credit to the purchaser provided the requisite
information is indicated in the VAT invoice/OR.
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33. Consequences of Issuing ERRONEOUS VAT Invoice/OR (Sec 113 of the NIRC):
B.Issuance by a VAT registered person of a VAT invoice/OR for an exempt-
transaction –if he fails to prominently display the words “VAT-exempt sale”
►The issuer shall be liable to VAT
►The purchaser shall be entitled to claim an input tax on his purchase
CLTA & Co.

34. EXPIRATION OF PRINCIPAL AND
SUPPLEMENTARY RECEIPTS/INVOICES
(RMO 12-2013)
•Should apply for Authority to Print (ATP) not later than sixty (60) days prior to actual
expiration date
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35. USE OF NON-THERMAL PAPER FOR ALL CASH REGISTER MACHINES
(CRMS)/ POINT-OF-SALE (POS) MACHINES AND OTHER
INVOICE/RECEIPT GENERATING MACHINE/SOFTWARE
New Business Registrants
►Section 3 of RR10-2015 –Businesses shall use non-thermal paper only
Existing Registered Taxpayer
►Section 2 of RR6-2016 amending Section 4 of RR10-2015 –Considering the
associated costs of transitioning to non-thermal paper, BIR allows compliance
over a three (3) year-period (3 years depreciable life).
CLTA & Co.

36. Amendments to RR 10-2015 on the Use of Non-Thermal Paper
►“All taxpayers using CRM/POS machines or other invoices/receipt
generating machine/software shall have the option to use the type of
paper depending on their business requirements, subject to the
retention and preservation of accounting records for a period
within which the Commissioner is authorized to make an assessment and
collection of taxes, as prescribed in Section 203 and 222 of the 1997
NIRC, as amended.”
CLTA & Co.

38. Financial
Statements
Journal
Books
Source
Document
PROCESS FLOW

39. CRINVBSDRPO
SOURCE DOCUMENTS

40. ORPR/ARContract
SOURCE DOCUMENTS

41. Sales
Journal
Issued
Charge/
Cash
Invoice/OR
JOURNAL BOOK

42. Purchase
Journal
Received
Charge/
Cash
Invoice/ OR
JOURNAL BOOK

43. Cash
Disbursement
Journal
Received
Cash Invoice/
OR/
Collection
Receipt
JOURNAL BOOK

44. Cash
Receipt
Journal
IssuedCash
Invoice/ OR/
Collection
Receipt
JOURNAL BOOK

45. General
Journal and
Ledger as
AP/AR
Billing
Statement
JOURNAL BOOK

46. General Journal
and Ledger as
Inventory/
Supplies
Received
DR
JOURNAL BOOK

47. General Journal
and Ledger as
Sales (less
inventory)
Issued
DR
JOURNAL BOOK

48. SALES JOURNAL
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49. PURCHASE JOURNAL
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50. THANK YOU!
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