[Ask The Tax Whiz] What’s new on invoicing requirements under the Ease of Paying Taxes law?

If I am a taxpayer using Manual Official Receipts and Billing Statement, what must I consider in complying with the updated invoicing regulations? Are my receipts still valid for claiming input tax?

Under Revenue Regulations No. 11-2024, you can still use your official receipts and billing statements in two ways. First, you can utilize it as supplementary documents if it is stamped with “This document is not valid for claim of input tax.” Second, you can convert them to primary invoices until they are fully consumed, provided that the taxpayer strike through the phrase “Official Receipt” or “Billing Statement” (as the case may be) on the face of the manual or loose-leaf printed receipt and stamp it with “Invoice.”

Should you opt for the second option, all converted invoices would be valid for claiming input tax from April 27, 2024, until fully consumed. To comply, taxpayers must submit an inventory of unused Official Receipts and Billing Statements to the RDO/LT Office/LT Division where you are registered on or before July 31, 2024.

Keep in mind that if you issue manual/looseleaf “Official Receipts” without converting them to “Invoice” for the sale of goods or service starting April 27, 2024, it will (1) not be considered as primary evidence of sales of goods and services, (2) be tantamount to failure to issue or non-issuance of Invoice, and (3) be subject to a penalty of not less than One Thousand Pesos (Php1,000.00) but not more than Fifty Thousand Pesos (Php50,000.00) and suffer imprisonment of not less than two (2) years but not more than four (4) years.

If I am a business owner using a CRM or Point of Sales Machine, what must I consider in complying with the updated invoicing regulations?

If you’re a business owner using CRM or POS machines, the BIR has set guidelines under Revenue Regulations No. 11-2024. First, you will have to change the word “Official Receipt” to “Invoice” but you need not notify the BIR of this. Second, you must submit a notice indicating the starting serial number of the converted Invoice to the RDO/LT Office/LT Division where the machines are registered.

You will only need to reconfigure your machine, which is only considered a Minor System Enhancement.

If I am a business owner using a Computerized Accounting System (CAS) or Computerized Books of Accounts (CBA) with Accounting Records, what must I consider in complying with the updated invoicing regulations? Am I required to do a Minor System Enhancement like the situation above?

As a taxpayer using a duly registered Computerized Accounting System or Computerized Books of Accounts with Accounting Records, you must comply with certain guidelines.

First, you must revisit your system to comply with the Ease of Paying Taxes (EOPT) Act. Second, you must surrender the Acknowledgement Certificate or Permit to Use to the RDO where you are registered. The required Annex of the AC shall indicate all the branches (if applicable) that are using the said system/software.

Since the system reconfiguration will have a direct effect on the financial aspect, you need to perform a Major Enhancement.

Any extension due to enhancements of the system shall seek approval from the concerned Regional Director or Assistant Commissioner of the Large Taxpayers Service which shall not be longer than six months from December 31, 2024.

Stay informed about the new invoicing requirements under  the Ease of Paying Taxes Law. Know your tax obligations and compliance. Consult ACG!

– Rappler.com