Question & AnswerQ&A (BIR REVENUE REGULATIONS NO. 8-99)
The main purpose of BIR Revenue Regulations No. 8-99 is to provide penalties for the violation of the requirement that output tax on the sale of goods and services should not be separately indicated in the sales invoice or official receipt.
All VAT-registered taxpayers who are required under Section 237 of the 1997 Tax Code to issue receipts or sales or commercial invoices are affected by this regulation.
No, VAT-registered taxpayers are no longer allowed to separately bill the value-added tax in sales invoices or receipts. The amount shown must be inclusive of the VAT.
This regulation is promulgated pursuant to Section 264, in relation to Section 106 (D)(1) and Section 108 (C) of the 1997 Tax Code.
The penalty upon conviction for each act or omission includes a fine of not less than One thousand pesos (P1,000) but not more than Fifty thousand pesos (P50,000) and imprisonment of not less than two (2) years but not more than four (4) years.
The regulation took effect fifteen (15) days after its publication in any newspaper of general circulation.
Yes, it explicitly revokes all inconsistent existing rules and regulations or parts thereof with the provisions of this regulation.
In this context, 'output tax' refers to the value-added tax imposed on the sale of goods and services, which should not be separately indicated in sales invoices or receipts but included in the total amount.
Beethoven L. Rualo, the Commissioner of Internal Revenue at that time, recommended the approval of the regulation.
They risk being penalized with fines ranging from P1,000 to P50,000 and imprisonment from two to four years for each violation.