~ BUREAU OF INTERNAL REVENUE

\(_1]) RECORDS MANAGEMENT DIVISION

REPUBLIC OF THE PHILIPPINES

DEPARTMENT OF FINANCE
BUREAU OF INTERNAL REVENUE

BY: ______ TIME:

July 11, 2024

REVENUE MEMORANDUM CIRCULAR NO. 07 7 - 2 Q 2 4

SUBJECT Clarification on the Invoicing Requirements Provided Under Revenue
Regulations (RR) No. 7-2024, as Amended by RR No. 11-2024

TO All Business Taxpayers, Internal Revenue Officials, Employees and

Others Concerned

Republic Act (RA) No. 11976, otherwise known as the "Ease of .Paying . Ta~es
(EOPT) Act", was signed into law and took effect·on January 22, 2024, after its pubhcat1on
in the Official Gazette. One of the key reforms introduced by the EOPT Act is the change
in the use of Sales Invoices and Official Receipts for tax purposes. Sections 113 and 237 of
the said Act provide:

"Sec. 113. Invoicing and Accounting Requirements for Value-Added

Tax (VAT) Registered Persons. -

(A) Invoicing Requirement - A VAT-registered person shall

issue a VAT Invoice for every sale, barter, exchange, or lease
of goods or properties and for every sale, barter or exchange of
services. xxx."

"Sec. 237. Issuance of Sales or Commercial Invoices -

(A) Issuance. - All persons subject to an internal revenue tax

shall, at the point of each sale and transfer of merchandise or
for services rendered valued at five hundred pesos (PhPS00.00)
or more, issue duly registered sale or commercial Invoices,
showing the name, Taxpayer Identification Number (TIN), date
of transaction, quantity, unit cost and description of merchandise
or nature of service: xxx."

Based on the foregoing provisions, an "Invoice" is now required to be issued for both
sales of goods and services. In view of this, this Circular is being issued to clarify the
invoicing requirements under the EOPT Act, the use and printing of Sales Invoice and to
provide a sample format of Invoices to be used as reference by taxpayers and concerned
BIR personnel.

Q1 What is the invoicing requirement for a VAT-registered person?

A1 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.

Q2 What is the invoicing requirement for a Non-VAT registered person?

A2 A Non-VAT-registered person shall issue a duly registered Non-VAT Invoice for every
sale, barter, exchange or lease of goods or properties, and for every sale, barter or
exchange of services valued at Five Hundred Pesos (Php 500.00) or more. However, if
a buyer requests for an Invoice, the seller must issue the same regardless of the
amount of transaction.

1
Q3 Does a seller need to issue an Invoice If the sale amount of a single transaction is
less than PS00.00?
A3 The following rules shall be observed:

a. For VAT-registered sellers, the issuance of VAT Invoice for each sale transaction
is required, regardless of the amount of transaction.

b. For Non-VAT registered sellers, an invoice shall be issued in the following cases:

i. the amount of a single sale transaction is more than PS00.00;

ii. the buyer requested/demanded an invoice, regardless of the amount of

sales transaction;

iii. If at the end of the day, the aggregate amount of all sales transactions
amounting to less than PS00.00 exceeded the PS00.00 threshold.

Q4 When will the PS00.00 threshold for issuing an Invoice be adjusted?

A4 The PS00.00 amount shall be adjusted to its present value every three (3) years,
beginning January 22, 2024 or the effectivity of the EOPT Act, using the Consumer
Price Index, as published by the Philippine Statistics Authority.

QS The seller is engaged in sale of service. After the effectivity of the EOPT Act, does
the seller need to apply for a new Authority to Print (ATP) Invoice and issue an
Invoice?
AS YES, since the Invoice is now the primary evidence for recording sales of goods and
services. For this purpose, an ATP must be secured before a seller can have an
Accredited Printer print an Invoice. However, during the transitory period, sellers may
opt to use their remaining unused Official Receipts by converting them into Invoice
following the options in Question No. 10 and Question No. 21 hereof.

Q6 What information must be contained in a VAT Invoice and Non-VAT Invoice?

A6 The Invoice shall contain the information provided under Section 6(8) of Revenue
Regulations No. 7-2024.

Q7 Is it necessary to indicate the business style in the Invoice?

A7 No. Business Style of the buyer or seller is not required to be indicated in the Invoice.
However, the seller may indicate its business name in the Invoice for trade name or
store name identification or branding purposes.

Q8 While the EOPT Act eliminates the Official Receipts as evidence of sales of goods
and services for tax purposes, can sellers still validly use and issue their
remaining unused booklets of Official Receipts?
AS Upon effectivity of RR No. 7-2024, Official Receipt is treated as a supplementary
document. Taxpayers, however have the following options on the remaining unused
Official Receipts:

Option 1: Continue the use of remaining Official Receipts as supplementary document;

or

Opti~n 2: C~nvert a~d use the remaining Official Receipts as Invoice following the
requirements m Question No. 1Oand Question No. 21 hereof.
,.S1/ BUREAU OF INTERNAL REVENUE
DIVISION
'!.- RECORDS MANAGEME~T
~

2
SY: _ _ _ __
Offlclal
to use his /he r/Its rem aining unu1ed booklets of
Q9 If the seller wa nts uirements?
documents, are there any req
Receipts as supplementary ma y still be used as supplementary doc
ument
ed Off icia l Re ceip ts icial Receipt
A9 All unused or unissu ed tha t each page of the unused Off
con sum ed, pro vid AIM OF
until they are fully IS DO CU MENT IS NOT VALID FOR CL
with the phr ase ''TH ent for the
must be stamped ma ke the document a valid replacem
lure to do so will not y be subject
INPUT TAX." Fai red as not Issuing an Invoice and ma
sel ler ma y be con side
Invoice; hence,
to applicable penalty.
oklets of
to con ver t and use his /her/its remaining unused bo
ff the seller wa nts nt/Statement
Q10
as Inv oic e or Bill ing Sta tement/Statement of Accou
Official Recei pts s?
e, are there any requirement
of Charges into Billing Invoic unu sed booklets of old Official Receipts and
y con ver t the rem ain ing tatement of
A10 Taxpayers ma Sta tement/Statement of Account/S the word
as Inv oice , or the Bill ing
use the same provided that,
until they are fully consumed,
Charges into Billing Invoice, tem ent of Accoun t/St ate ment of Charges into
ceipt/B illin g Sta tem ent /Sta be stricken
"Official Re l and loose leaf printed receipt shall
on the fac e of the ma nua e" or "Charge
Billing Invoice" be sta mped "Invoice" or "Cash Invoic
icial Re ceip t] and sha ll ent] "Billing
out [e.g. Off Invoice" or [e.g. Billing Statem
t Inv oice " or Ser vice
Invoice" or "Cr edi shall be issued
any nam e des crib ing the tran saction for which such Invoice
Invoice", or
to its buyer/purchaser.
ment of Charges
cei pt/B illing Sta tem ent/Statement of Account/State
S!nce the Off icia l Re oice/Billing Invoice
as _su pple me nta ry doc um ent , the conversion of such to Inv t the converted
will s~rve ed tha
ion given to taxpayers, provid ed under RR No. 7-
as pnmary invoice is an opt info nnation pro vid
tain the required
Invoice/Billing Invoice shall con ntity, uni t cos t and description or
inc lud ing details like qua
202 4, as am e~d ed, sing information may be
Sec. 237 of the Tax Code. Mis
nature of service pursuant to originally included, upon conversion.
stamped on the document if not

vert this
ng the Official Receipt format below, can he/she/it con
Q11 The ~eller is_ usi
Official Receipt to an Invoice?

Receipt
~J e Only: ~o ao f..O .ffk ial~~ "Annex~
~O R A TI O N
•
. . . , .,, . 76-f)iftman, QuezoA-6ity
VAT Reg. TIN: 144-424-024-0000
INVOICE
GFFl&lst,b A6&61Pi
rout
r.-
~~
::-,
:-y°'5!0:r>
ltss: ,.,N.'O I --+
--- --i .-- i

r.- ._- .~. --- t-- -~. ....

,
I Received from - - - - - - -
DATE
----
w,·th TIN
,c,5;,.itlt.ofclrJTil ' engaged in the
-~ and address at , the sum of
r--f ""- t--- l)ff ---- -+- ---1 of
-4- -II business style
r-- ~~ TY ~·4 --- pesos
UNIT COST!
-i (i;l _ ) In partial/full payment for -:: :-: --- --
r.:w ::--• -:Sl les- :-:-- -t--- --+- -:: :-= "Payme111jor" may refer to
l\JRE OF SERVICE
NA e
IIIT-£.1t1f91Salts
:_-:_-:_-1 descnp11011 or 11ature ofservic
z«o~1t6Siitt
.--- J sr. Cltb, a TIN
---"'1:!V:"':;;;.-;;.-:_-:_~-:_-
C.._7::-- MO llll- --t- ---J Cashier/ Authonzed Representa
bve

r«,1 Salti
OSCA/PWD ID No.

10,~ (3x ) 1001-1500 Xo. 1001

05
BIR Authority to Print No. 3AU0008 222
Oat , Issued 07-3(M3: 051200
BERTHA PRINTING SERVICES '
INC Printer's Accreditation No. P08
• 1-12 EVENUE
~ 789, Quezon Qjy Date Issued 08-0
Tl~ -45 6-7 89- 000 0 @) l~!Jt~s~AWIJr~r~,D~~ISION
~

3
A11 Yes the seller may convert the above Official Receipt (sample format In Annex C.1.2 or
1
C.2 of Revenue Memorandum Order No. 12-2013) to an Invoice, provid!d that all t~e
required infomiation under Section 8(8) of RR No. 7-2024 are shown ,n the Offic,al
Receipt including the quantity, unit cost and description of goods sold or nature of
service which are required under Section 237 of the _Tax Co.d~, as ~mtnded. The
missing infonriation may be stamped on the document 1f not originally included, upon
conversion.

Q12 Can the seller use a Cash Invoice, Charge Invoice, Credit Invoice, Service Invoice
or Billing Invoice and apply for its Authority to Print? . .
A12 Yes. Taxpayers may use any descriptive name for its Invoice to describe th! nature of
the transaction/s with the buyer/purchaser, such as "Invoice", ':Sales l~v~1ce" "~ash
Invoice", "Charge Invoice", "Credit Invoice", "Billing Invoice", "Service Invoice; Provided,
that in all such cases, the word "Invoice' is prominently printed.

e.g.

SAlES
INVOICE

SERVICE
INVOICE
/•'\ SANDBOX
°"'_., INVOICE
· - · ANNYIONC SIYOH & CO
NOH-VAT REG TIN 11~~739-00000
COI.IMERCtAL.
• .,er.;,, ,.. k.00 ~ - · wv,,,c,,
~ • • t ...,,_, o..E."C>,Or• »>: INVOICE
lm•oice No. 5000001
8 CASHSAI.ES
:; CHAAGE SJ.LES
,~te -r-- 7

Q13 When does the seller use Invoice, Cash Invoice, Credit Invoice, Billing Invoice or
Service Invoice?
A13 Sales transactions are typically either cash (paid) or on credit (not yet paid) and an
Invoice should be issued in both cases. Taxpayer may label or name its Invoice to
reflect its specific sales transactions. To clearly identify the type of sale, the seller may
use different descriptive names for the Invoice to reflect the nature of transactions, such
as:

• Invoice - Issued for both sales of goods or services rendered

• Sales Invoice - General purpose Invoice for any sales transaction
• Cash Invoice - Used for cash sales or specifically for sales where immediate
payment is received
• Charge/Credit Invoice - Issued for sales on credit. where payment is expected
at a later date
• Service Invoice - Used for transactions where a service is provided
• Billing Invoice - A document to bill charges similar to Charge Invoice and
contains. ~ther information similar to a statement of account, billing statement,
summanz1ng charges for a specific transaction
• C?mmercial Invoice - A document used by exporter for export transactions
• Miscellaneous Invoice - Issued for other income received by the seller

~ta~ing April 27, 2024, sellers of goods and services shall issue any of the above
invoices for their transact1·ons BUREAU OF INTERNAL REVENUE
• 1~ 2
''!!- RECORDS MANAGEMENT DIVISION

4 0
-1 ~ ~ llnlJ
_ _lJNtl
BY: _ _ADMIN _ flME: ~ • f" M
Q14 : In the case of utlllty companies and other recurring service providers In which a
customer Is being billed, when should an Invoice be Issued for the services
rendered?
A14 Service providers who billed their customers shall now issue a Billing Invoice upon
billing instead of Billing Statement or Statement of Account. The Billing Invoice should
contain the required information provided under RR No. 7-2024, as amended, including
the quantity, unit cost and description or nature of service pursuant to Sec. 237 of the
Tax Code.

Q15 The seller is engaged in the sales of goods or services, can he/she/it issue
Invoice at the time of sale and another Invoice to acknowledge receipt of
payment?
A15 No. Sellers cannot issue an invoice upon receipt of payment. However, an Official
Receipt or Payment Receipt or Acknowledgement Receipt may be issued upon
subsequent collection or receipt of payment.

Illustration:

Incorrect:
Invoice Date of Remarks
Action Transaction
Series
Sale of Goods/ #00001 27-April-2024 Invoice issued for sale,
Services but no payment received
vet.
Receipt of Payment/ #00002 05-May-2024 (This is incorrect.)
Collection of Separate invoice issued
Receivable when payment is received
for the previous sale.

Correct:

Ootion 1·
Invoice Date of
Action Remarks
Series Transaction
Sale of Goods/ #00001 27-April-2024 Single Invoice for both
Services and the sale and the receipt
Receipt of Pavment of pavment.

Ootion 2:
Date of
Action Series Remarks
Transaction
Sale of Goods/ Invoice 27-April-2024
Invoice issued for sale,
Services #00001 but no payment
received vet.
Issue_ a supplementary document upon collection of pavment/receivable:
Rece1p~ of Payment/ PR #00001 05-May-2024 Supplementary
Collection of
Receivable document [e.g.
Payment Receipt (PR)]
issued when payment
is received for the
previous sale.
,~: BUREAU OF INTERNAL REVENUE
'!!- RECORDS MANAGEMENT DIVISION

5
Q16 Can invoices be used for both sales and collections of payment/receivable
for the same transaction?
A16 Yes. An Invoice is a document evidencing sale of goods or servi<:8· However,
such Invoice may contain an information acknowledging the receipt of payment
for the said sales transaction.

Sample Invoice:

(•\ SANDBOX
e e CRISP. BACON• PROPIUETOR INVOICE
- VAT REG TIN 123-(56-789-00000
,~l'\0011. l'OlCG SEN Ylll""' P OErENSOII·
SANTIAGO AW N<YAl<AH QUlZON CITY tOC-,

9 TRANSACTION
TYPE
El CASHSALES
0 CHARGE SALES I oate
lll•v"" 11v. Ouuuvvl

I 03-June-2024
I:).. TRANSACTION DATE/
'1::!/DATE OF SERVICE
cn,n'l"I'\
RENDERED
AND DATE OF PAYMENT
RegiStered Name JUAN DELA CRUZ

TIN 999-999-999-00000

Busmess Address 45 ACACIA ST AGHAM OILIMAN QC

Item~ Amolllt
Nature of 5elvk:e Quardylld:
Payment for 5eMce LabOr 1 2,50000 P2,50000

Part#869 60000
2 30000

w,re#759 50000
1 50000

Total Salts P3,60000

VATable S8leS 3,214 28 IVAT 1-....1
VAT 385.71 Less VAT
Zero-Rated Sales Amount Net of VAT
Less Dosc011nt
VAT-Exempt Sales (~VISP)

Add VAT

Less Wltlllloldlng Tax

9
B
El R-ivtd Ille amount of TOTAL AMOUNT (DUE) P3,600.00
=ENT ALREADY P3,60000

SC/PWOINAACIMOV/
Solo Parent 10 No
SCIPWDINAACIMOV/
Signature

PERMIT TO USE LOOSE LE.AF NO u.s,o«om"°°'' SIA AUT'HORITY TO P:tlNT NO ! A ~

DATE ISS\J£0 0HH-2024 DA TE ISSCEC ll-fEl-1Q24
>.m!<MO seqIes !000001- =500 1061ClTS llXl

Q17 Can the seller use two types or two sets of Invoice? E.g. Cash Invoice and Charge
Invoice or Sales Invoice and Service Invoice?
A17 Taxpayers have the option which lnvoice/s may be used depending upon the
transactions that will be issued such lnvoice/s.

E.g. a. Invoice/Sales Invoice issued for cash and/or credit sales

b. Cash Invoice issued for cash sales and CrediUCharge Invoice issued for sales
on accounUcredit sales
C. Invoice/Sales Invoice for sales of goods and Service Invoice for sales of
service
d. Sales Invoice for primary sales transaction and Miscellaneous Invoice for other
income
e. Invoice/Billing Invoice issued to bill customers.

Taxpayers may have its own choice of using more than one type of Invoice. However,
such choice should consider the transactions that will be issued said lnvoice/s.
'1--:, BUREAU OF INTERNAL REVENUE
'·'•Tt RECORDS MANAGEMENT DIVISION

6 M

BY: _ _ _ _ _ _ rlMI:: •
serial number shall
Q18 For taxpayers previously using Official Receipt, what starting .
es?_ .
be used when applying for a new Authority to Print ln~oic equivalent Invoice
or ,ts
A18 Taxpayers shifting from Official Receipt to Sales Invoice
replacement shall apply for a new ATP Invoice.
or name of Invoice shall
If the taxpayer is using different types of Invoices, each type
(1) (e.g. 0000001) or any
have a separate set of serial numbers starting from one
to make such number
number (e.g. 5000001) or taxpayer may add prefix or suffix
distinct.

e.g. ATP No XXXXXXXXX

Description Starting Serial No. Ending Serial No.
Invoice 0000001 0005000
Cash Invoice CA0000001 CA0005000
CharQe Invoice CH0000001 CH0005000
Sales Invoice 0000001 0005000
Service Invoice 5000001 5005000

mentary document, it shall

For those opting to continue using Official Receipt as supple
er of its Official Recei pt when applying for
continue the last approved serial numb
ent.
subsequent ATP for Official Receipt as supplementary docum
ter Machine (CRM) and
Q19 The seller is issuing an Official Receipt using Cash Regis
onic Invoicing Software.
Point-of-Sales (POS) Machine and e-Receipting or Electr
e/it shift from Official
Does he/she/it need to reset the series number when he/sh
Receipt to Invoice?
s can now replace "Official
A19 Taxpayers using CRM/POS/e-Receipting/e-lnvoicing system
t the need for approval of
Receipt" with a more descriptive term for their Invoices withou
the Revenue District Office. These terms may include:
• Invoice
• Cash Invoice
• Charge Invoice
• Credit Invoice
• Billing Invoice
• Service Invoice
• Any other term that accurately describes the transaction
start by continuing the
Pr~vided, that the s~rial numbe~ of the .renamed Invoice shall
submit a Notice in two (2)
senes from the last issued Official Receipt. The seller shall
the converted Invoice and
copies (both original), indicating the starting serial number of
. Such Notice shall be
the start date when such serial number was/will be issued
machines are registered.
submitte~ ~o the RDO/LT Office/LT Division where the sales
of the said Notice to the
The rece1v1ng Branch RDO shall transmit the original copy
nce and audit purposes of
Head Office RDO and retain the duplicate copy, for refere
both offices.

[See illustration on the next page]

tin BRVREAU OF INTERNAL REVENUE

'(!§) i;;COROS MANAGEMENT DIVISION

... TIME:
- .•
-~---

7
Illustration:
Before April 27, 2024/Before Starting April 27, 2024 After
Renamina or Enhancement Renamlna or Enhancement

XXX XXX

Official Receipt INVOICE

OR#: 0005000 INV#: 0005001

XXX XXX
XXX XXX
Amt Due Amt Due

VATable Sale VATable Sale

VAT Amount VAT Amount
VAT Exempt Sale VAT Exempt Sale
Zero-Rated Sale Zero-Rated Sale

XXX
XXX

The last serial number of Official After renaming to Invoice, the

Receipt issued is OR# 0005000. starting serial number of the first
Invoice after conversion is
INV# 0005001.

Q20 Is prior approval from the Revenue District Office (RDO)/ Large Taxpayers (LT)
Offices/LT Divisions required in the stamping of the word 'Invoice' in the
remaining unused Official Receipts?
A20 The stamping of Official Receipts as Invoices by taxpayers does not require approval
from any RDO/LT Office/LT Division but it must comply with Section 8(2.3) of RR No. 7-
2024. However, the reporting of unused Official Receipts to be converted to Invoice is
required. The taxpayer should obtain newly-printed Invoices with an Authority to Print
(ATP) before full consumption of the converted Official Receipts.

Q21 Do taxpayers need to submit any reports regarding the use of remaining unused
Official Receipts and those converted Invoices issued by CRM/POS machines/E-
receipting [CAS/CBA with e-receipting or Accounting Records (AR)] or E-
lnvoicing software that previously used Official Receipts?
A21 Yes. All unused manual and loose leaf Official Receipts to be converted as Invoice shall
be reported to the BIR by submitting an Inventory Report (suggested format - Annex C)
of unused Official Receipts (in duplicate copies), indicating the number of booklets and
the serial numbers of the unused Official Receipts converted to Invoice.

~ ::::t:J@ Taxpayers using CRM/POS machines/E-receipting (CAS/CBA with e-receipting) or E-

',-..i..t...-. : ~°' Invoicing software that renamed the Official Receipts being issued to Invoice shall be
l> 8~ reported by submitting a Notice on the Renaming of Machine/System Generated Official
o c ~~ Receipt to Invoice (suggested format - Annex D) indicating the starting serial number of
~ r- s:~
)>
the converted Invoice and the start date when such serial number was/will be issued.
z-
l>z
-;::; ~~ The _said Inventory Report (Annex C) and Notice on the Renaming of Official Receipt to
~, ~~ Invoice (Annex D) shall be submitted to the RDO/LT Office/LT Division where the Head
i:i.,. ~;; Office or Branch Office is registered, or through the Taxpayer Registration Related
••Ir ~~ Application (TRRA) Portal via email of the Compliance Section, on the following
•~,..-•,•· ~j deadlines:
~
8
Annex Deadline of Submlsllon
Annex C - Inventory Report until July 31, 2024
(for Manual/Loose leaf)
Annex D - Notice on the Renaming within thirty (30) days from the completion of
of Official Receipt to Invoice - machine/system reconfiguration/enhancement or
(for CRM/POS/CAS/CBA with AR) on December 31, 2024, whichever comes first

The receiving Branch RDO shall transmit the original copy to the Head Office ROO and
retain the duplicate copy, for reference and audit purposes of both offices.

Taxpayers who have already submitted the inventory report using Annex D of RMO
No. 12-2013 or Letter Notice prior to the publication date of this Circular on the BIR
official website are no longer required to resubmit the inventory report using the
format outlined in Annex C or D of this Circular.

Q22 Can I submit the Inventory Report (Annex C) or Notice on the Renaming of
Official Receipt to Invoice (Annex D) of all branches to the RDO where the Head
Office is registered?
A22 Yes. The taxpayer may submit the Inventory Report (Annex E) and Notice on the
Renaming of Official Receipt to Invoice (Annex F) of all its branches, to the RDO where
the taxpayer's Head Office is registered. The RDO of the Head Office shall transmit the
copy of the respective branches to the concerned RDO.

However, if taxpayer opted to submit Inventory Reports and/or Notices of other

branches in a particular branch RDO, the taxpayer shall use the TRRA Portal to submit
said reports and/or notices of all other branches.

Q23 I am using a Computerized Accounting System (CAS) or Computerized Books of

Accounts (CBA) with Accounting Records. Until when can I enhance the system?
A23 To provide ample time in enhancing the system, adjustment shall be undertaken 2!1.2!:
before December 31, 2024. Any extension due to enhancements of the system must
be approved by the concerned Regional Director or Assistant Commissioner of the
Large Taxpayers Service, which shall not be longer than six (6) months from December
31, 2024.

Q24 What are the requirements and procedures in applying for an extension to
enhance the system?
A24 Taxpayers requesting for an extension to enhance their system shall notify the
concerned RDO/LT Office/LT Division through the Compliance Section/concerned LT
J@ Office/Division, where they are registered, for approval of the concerned Regional
Cj-;.i:_~~~ =" ~°' Director or Assistant Commissioner of the Large Taxpayers
Service, by submitting a
§~ Letter Request before December 31, 2024 stating the reason or justification for the
~~ request for extension, the target date of completion of enhancem ent, email address and
~o contact details of the contact person.
1)::. "Tl
Zz
~~ The RDO/LT Office/LT Division shall act on the request within three (3) working days
~ ~~ from receipt of the letter from the taxpayer and recommend for its approval/disapproval
~ . 3~ by the Regional Director or Assistant Commissioner. The Regional Director or Assistant
. _ . _ .... ,
1
~~ Commissioner shall act on the request within three (3) working days from receipt of the
" ~--)~~!r ecomme ndation of the RDO.
~ Q25 : The seller is a VAT-registered with mixed transactions engaged in sale of
products subject to VAT, Zero-Rated and VAT-Exempt. Can he/she/it issue a
single Invoice? How should the VAT be presented in the Invoice?
A25 A VAT-registered person with mixed transactions may issue a single or separate
Invoice for its Vatable, VAT-Exempt, and Zero-Rated sales.

Should the said seller opt to have only one Invoice, the VAT amount and sales amount

9
~ales and
must be broken down as to Vatable Sales, VAT-Exempt Sales, Zero-Rated
sale should be indicated in the Invoice.
the corresponding amount for each type of

Sample:

VATable Sales P200,000.00

VAT 24,000.00
VAT-Exempt Sales 50,000.00
Zero-Rated Sales 26,000.00
the word
Provided that if the seller opt to issue separate Invoice for each type of sale,
written or prominently printed on each
"VAT-Exempt Sale" or "Zero-Rated Sale" shall be
Invoice.
stamped with
Q26 What are the consequences of issuing an Official Receipt (whether
CRM/P OS, E-rece ipting or Electronic
"Invoice" or unstamped) generated by
for the sale of goods and service s after
Invoicing Software and CAS/CBA with AR
the comple tion of machin e/syste m
December 31, 2024 or until
ver comes first, and issuing of Manua l and
reconfiguration/enhancement, whiche
Loose Leaf Official Receipt (unstamped) after April 27, 2024?
s after the
A26 The issuance of such "Official Receipt" for every sale of goods or service
services and
prescribed period shall not be considered as evidence of sales of goods or
failure to issue or non-issuance of Invoice required under Section
shall be tantamount to
Thousa nd
6(A) of RR No. 7-2024, which is subject to penalty of not less than One
.00) and
Pesos (Php 1,000.00) but not more than Fifty Thousand Pesos (Php 50,000
pursuant
imprisonment for not less than two (2) years but not more than four (4) years
to Section 264(a) of the Tax Code.
nt Receipt,
Q27 What is the consequence of issuing an Official Receipt, Payme
t only without the
Collection Receipt, Billing Statement or Statement of Accoun
of goods or service s?
corresponding Invoice or Billing Invoice upon sale
, Billing Statem ent or Statem ent of
A27 Official Receipt, Payment Receipt, Collection Receipt
docume nts. Hence, when issued
Account under RR No. 7-2024 are supplementary
of goods or
upon sale of goods and services, it is not considered as evidence of sales
issue or non-iss uance of Invoice required
services and shall be tantamount to failure to
is subject to penalty of not less than One
under Section 6(A) of RR No. 7-2024. Such
not more than Fifty Thousa nd Pesos
Thousand Pesos (Php 1,000.00) but
more than
(Php 50,000.00) and imprisonment for not less than two (2) years but not
four (4) years pursuant to Section 264(a) of the Tax Code.

a VAT
Q28 What are the consequences if a Non-VAT seller erroneously issued
Invoice?
to following
A28 A seller who is not VAT-registered and issued a VAT Invoice shall be liable '
in addition to its Percentage Tax liability:
benefit of
a. VAT imposed under Section 106 or 108 of the Tax Code, without the
any input tax credit; and
b. A fifty percent (50%) surcharge under Sec. 248(8) of the Tax Code.
the VAT-
Th~ VAT amount can be recognized as an input tax credit on the part of
110 of the Tax Code as amende d if all of the
regrstered purchaser under Section '
following information are present: '
a. Amount of sales;
b. VAT amount;
e (BIR)
c. Reg!stered name_ and. TIN as shown on the Bureau of Internal Revenu
Cert1fi~a~e of Reg1strat1on of both purchaser or buyer and issuer or seller;
d. Descnpt1on of goods or nature of services; and
e. Date of transaction.

10
Q29 What is the consequence of a VAT-registered taxpayer Issuing an Invoice with
incomplete Information required under Section 3(8) and Section 6(8) of RR No. 7-
2024, as amended?
A29 If a VAT-registered seller issues a duly registered VAT Invoice to a VAT-registered
buyer/purchaser with lacking information required under Section 3(8) and Section 6(8)
of RR No. 7-2024, the seller or issuer shall be liable for non-compliance with the
invoicing requirements.

However, the VAT amount shall still be allowed to be used as an input tax credit under
Section 110 of the Tax Code, on the part of the VAT-registered purchaser or buyer,
except if the lacking information pertains to any of the following:
a. Amount of sales;
b. VAT amount;
c. Registered name and TIN as shown on the Bureau of Internal Revenue (BIR)
Certificate of Registration of both purchaser or buyer and issuer or seller;
d. Description of goods or nature of services; and
e. Date of transaction.

Q30 When is the effectivity of the invoicing provisions of RR No. 7-2024?

A30 The invoicing provisions of RR No. 7-2024 implementing RA 11796 is effective on April
27, 2024, which is fifteen (15) days from the date of publication on the BIR official
website on April 12, 2024, including Section 8 of RR No. 7-2024 on the transitory
provisions.

Q31 For sale of service with different date of transaction and date of collection of
payment, what document should be issued to evidence the transaction?

A31 Date of Sale Document to be Collection Document to be

Transaction issued Date issued
Prior to between Official Receipt
April 27, 2024 January 22,
2024 & April 26,
2024
Prior to On or after 1. Invoice
April 27, 2024 April 27, 2024 2. System-generated
and printed Official
Receipt converted to
Invoice (Strike
through and
stamped) until
December 31, 2024
or until completion of
reconfiguration/
enhancement
whichever comes
first
3. Manual Official
Receipt Converted
Invoice (Strike
through and
stamped) until full
consumption
4. Back-up manual
Official Receipt
converted to Invoice
~BUREAU OF I TERNAL REVENUE
'0JJ RECOROS MAN GEMENT DIVISION (Strike through and
I
stamped) until full
consumption

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