Question & AnswerQ&A (BIR REVENUE MEMORANDUM CIRCULAR NO. 2-2014)
The Circular clarifies the requirement for the issuance of Official Receipts as evidence of payment for disbursements where the payee/recipient is a dealer, supplier, or business establishment mandated by the BIR to issue such receipts, especially in government auditing contexts.
Sales Invoices are required as the principal evidence in the sale of goods and/or properties.
Official Receipts are issued as principal evidence in the sale of services and/or lease of properties.
Commercial receipts/invoices such as delivery receipts, order slips, purchase orders, provisional receipts, acknowledgment receipts, collection receipts, credit/debit memo, job orders, and other similar documents are considered supplementary evidence.
The buyer of goods on account or credit evidenced by a Charge Sales Invoice is entitled to claim input taxes. Upon collection of the account by the seller, a Collection Receipt (Supplementary Receipt) shall be issued to the buyer to evidence the receipt of payment.
Yes, Sales Invoices shall serve in lieu of Official Receipts in the sale of goods or properties for evidentiary purposes in terms of audit.
Official Receipts act as the acceptable evidence of receipt of payment for disbursements where the recipient is a dealer or business establishment required to issue such receipts under BIR regulations.
Internal revenue officials and employees are enjoined to give wide publicity to the Circular to ensure strict observance of the provisions on the issuance of principal and supplementary receipts/invoices.
Sections 106, 108, and 113 of the National Internal Revenue Code (NIRC), as amended, are cited as pertinent provisions governing this Circular.
Because Sales Invoices are demanded as evidence of delivery or agreement to sell goods or services, and Official Receipts are demanded as evidence of payment, hence both documents may be required for audit and compliance purposes.