#AskTheTaxWhiz: Are bazaars required to issue official receipt?

In time for the Christmas season, several bazaars or tiangge are up in almost all corners and vacant spaces. Is it true that they are also required to issue an official receipt?

Yes. Under the tax code, all services or goods sold at P25.00 ($0.56*) or more are to be issued an invoice or receipt.

What if the seller refused to issue a receipt, is there a penalty?

Yes. Failure or refusal to issue receipt or sales invoice is subject to penalty.

For failure to issue receipts or sales or commercial invoices on a first offense, the penalty is P10,000 ($223.56). For the second offense, the penalty is P20,000 ($447.13).

For refusal to issue receipt or sales or commercial invoices on a first offense, the penalty is P25,000 ($558.53). For the second offense, the penalty is P50,000 ($116.95).

I need to reimburse my expenses from our company. However, most of my expenses are meals from fast food chains supported by tape receipts. Are tape receipts considered as an official receipt?

Yes. Provided the tape receipts are generated from a cash register machine (CRM) with the Bureau of Internal Revenue (BIR) sticker duly signed by the Revenue District Officer (RDO). This means that the CRM is registered with BIR.

Got a question about taxes? #AskTheTaxWhiz! Tweet @rapplerdotcom or email us at business@rappler.com. – Rappler.com

*$1 = P44.76

Mon Abrea is a former BIR examiner and an advocate of genuine tax reform. He serves as chief strategy officer of the country’s first social enterprise, the Abrea Consulting Group, which offers strategic finance and tax advisory services to businesses and professionals. Mon’s tax handbook, Got a Question About Taxes? Ask the Tax Whiz! is now available in all bookstores nationwide. Follow Mon on Twitter: @askthetaxwhiz or visit his group’s Facebook page. You may also email him at consult@acg.ph.

Receipt image via Shutterstock