No Separate VAT Display on Sales Invoice

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BIR REVENUE MEMORANDUM CIRCULAR NO. 8-99: No Separate VAT Display on Sales Invoice

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Title Source: Supreme Court: No Separate VAT Display on Sales Invoice

Law: Bir Revenue Memorandum Circular No. 8-99

Decision Date: Jan 20, 1999

BIR Revenue Memorandum Circular No. 8-99 mandates that VAT-registered taxpayers must no longer itemize output tax separately on sales invoices or receipts, requiring the total amount to be inclusive of VAT, in compliance with amendments to the Tax Code.

Law Summary

Implementation under Revenue Regulations No. 7-95

Revenue Regulations No. 7-95 (effective January 1, 1996) enforces the amended VAT computation method.
Section 4.100-6 stipulates output tax computation by multiplying the invoice amount by 1/11.
Section 4.104-04 reiterates that VAT on goods, properties, or services is computed by multiplying the total invoice or receipt amount by 1/11.

Prohibition on Separately Indicating VAT in Sales Documents

Since January 1, 1996, VAT-registered taxpayers cannot indicate VAT as a separate item in sales invoices or official receipts.
The gross amount stated in the sales invoice or receipt is conclusively considered inclusive of VAT.

Enforcement and Compliance Reminder

Certain VAT-registered taxpayers have failed to comply, continuing to issue invoices/receipts with VAT separately stated.
The Revenue Memorandum Circular No. 8-99 reiterates the requirement to issue sales documents with VAT included in the gross amount without separate indication.
Revenue officials are urged to widely disseminate this circular to ensure compliance and public awareness.

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