Upon the Effectivity of these Revenue Regulations. INVOICE will be the primary documents for both Trading and Service type of businesses.
As Illustrated above:
1.) There’s no effect on Trading businesses on the invoicing requirements. Sales Invoice as primary documents and collection receipt as secondary documents.
2.) On Service businesses, Official Receipts are no longer considered as primary documents and will no longer be valid for claim of Input Tax.
The Revenue Regulation provides for the TRANSITION PERIOD on the unused Official Receipt which offers two (2) options for the transition briefly describe as follows:
Option 1: Use of Official Receipts as Supplementary Documents
Under this option, all unused or unissued Official Receipt may still be utilized as supplementary documents until they are fully consumed. However, it is mandatory that each document is stamped with the phrase “THIS DOCUMENT IS NOT VALID FOR CLAIM OF INPUT TAX.” This stamp must be placed on the face of each document starting from the effective date of these regulations. In addition to using the remaining ORs as supplementary documents, suppliers are required to issue Billing Invoices or sales invoices that are compliant with the BIR Authority to Print (ATP) requirements. These primary documents must include the phrase “THIS DOCUMENT IS VALID FOR INPUT VAT CLAIM.” This ensures that transactions remain eligible for input tax claims.
Option 2: Conversion of Official Receipt to Invoice (Valid until fully consumed)
Suppliers may choose to convert their remaining stock of Official Receipts into invoices. This conversion involves physically striking through the term “Official Receipt” on the face of each receipt and stamping it with “Invoice,” “Cash Invoice,” “Charge Invoice,” “Credit Invoice,” “Billing Invoice,” “Service Invoice,” or any other term that accurately describes the transaction. These converted documents will then serve as the primary invoice for transactions with buyers or purchasers until (December 31, 2024 only RR 7 -2024 but RR 11-2024 amends this deadline changing to until fully consumed)