Question & AnswerQ&A (BIR REGULATIONS NO. 4-2000)
The primary purpose of BIR Regulations No. 4-2000 is to prescribe the posting of notices for the issuance of sales/commercial invoices and/or official receipts by persons required by law to issue them, and to provide penalties for non-compliance, thereby improving revenue collection and enforcing tax laws.
The provisions apply to persons engaged in trade or business, including the exercise of profession, who are required by law or regulations to issue sales/commercial invoices and/or official receipts.
The notice should be posted conspicuously in places of business, including branches and mobile stores, where it is visible to the public.
The size specification of the notice shall be twelve (12) inches in width and eight (8) inches in length.
No, at no time shall the notice be detached, removed, or covered from public view.
Violations include: (a) failure and neglect to post the required notice, and/or (b) deliberate removal of the notice.
Any person violating the regulations shall, upon conviction, be punished by a fine of not more than One Thousand Pesos (₱1,000) or imprisonment of not more than six (6) months, or both, pursuant to Section 275 of the National Internal Revenue Code 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.
These regulations took effect fifteen (15) days after publication in any newspaper of general circulation.
They are promulgated pursuant to Section 244, in relation to Sections 237, 238, 264, and 275 of the Tax Code of 1997.
Yes, every seller is obligated to issue sales/commercial invoices and/or official receipts on sales transactions, with or without demand from the buyer, except for sales valued at P25 or below by a Non-VAT taxpayer.