BIR REVENUE MEMORANDUM CIRCULAR NO. 8-99

: The circular mandates that VAT-registered taxpayers must no longer indicate output tax as a separate item in sales invoices or official receipts. The gross amount should be VAT-inclusive.
: Republic Act No. 7716, the Expanded Value Added Tax Law, amended the provision.
: This requirement became effective beginning January 1, 1996, the date Revenue Regulations No. 7-95 took effect.
: Sections 100(d)(1) and 102(c) of the old Tax Code were amended; these correspond to Sections 106(D)(1) and 108(C) of the 1997 Tax Code.
: VAT is computed by multiplying the total amount indicated in the invoice or receipt by 1/11.
: No, VAT-registered taxpayers are no longer given the option to separately indicate VAT on invoices or receipts after that date.
: While the circular primarily serves as a guideline for compliance, failure to comply may be subject to scrutiny and enforcement by revenue officials and possible penalties under tax laws for non-compliance.
: The 1/11 multiplier is used to compute VAT included in the gross amount, reflecting the tax component in the total price that already includes VAT at 10%.
: Section 4.100-6 and Section 4.104-04 of Revenue Regulations No. 7-95 specify that VAT should be computed by multiplying the total amount by 1/11 and no longer be shown as a separate item.