QuestionsQuestions (BIR REGULATIONS NO. 4-2000)
It prescribes the posting of a notice informing the public of the requirement to issue sales/commercial invoices and/or official receipts, defines violations, and provides penalties to improve revenue collection.
The regulations were issued pursuant to Section 244 in relation to Sections 237, 238, 264, and 275 of the Tax Code of 1997.
At the person’s place of business, including branches and mobile stores, in an area conspicuous to the public.
It must contain the specific text: “NOTICE TO THE PUBLIC: THIS BUSINESS ESTABLISHMENT IS REQUIRED BY LAW TO ISSUE SALES/COMMERCIAL INVOICE/OFFICIAL RECEIPT. VIOLATION HEREOF IS PUNISHABLE BY FINE AND/OR IMPRISONMENT. PLEASE REPORT ANY VIOLATION TO THE BUREAU OF INTERNAL REVENUE.” It is significant because it legally informs the public of mandatory invoicing and potential penalties.
The notice includes: “(Issuance of sales/commercial invoice and/or official receipt is not required for every sale valued at P25 or below by a Non-VAT taxpayer).”
At no time shall the notice be detached, removed, or covered from public view.
The notice must be twelve (12) inches in width and eight (8) inches in length.
Failure and neglect to post the required notice and/or deliberate removal of the notice.
Upon conviction, the person may be punished by a fine of not more than P1,000 or imprisonment of not more than six (6) months, or both, pursuant to Section 275 of the NIRC of 1997.
The penalty shall be imposed on the president, partner, general manager, branch manager, officer-in-charge, and/or employees responsible for the violation.
It takes effect after fifteen (15) days from publication in any newspaper of general circulation.
It contains a repealing clause amending all rules and regulations and other revenue issuances or parts thereof inconsistent with its provisions.
It helps reinforce compliance by notifying the public that the issuance of sales/receipts is mandatory and that violations carry criminal penalties, thereby encouraging reporting of non-compliance to the BIR.