BIR Ruling

April 25, 1973 The Proprietor Ohms Trading 518 Evangelista St. Quiapo, Manila S i r : This refers to your letter dated April 10, 1973 requesting the lifting of the limitations provided for in your permit to use a cash register machine in your store to sales not exceeding P49.99. In effect, you request that you be exempted from the requirement prescribed in Section 204 of the Tax Code that in case of sales in the amount of P50.00 or more, the invoices or receipts shall further show the name or style, if any; and business address of the purchasers. cdt In reply, I have the honor to inform you as follows: Section 204 of the Tax Code authorizes the Commissioner of Internal Revenue to exempt, in meritorious cases, any person subject to an internal revenue tax from compliance with the provisions thereof. It is stated in your letter that experience tells you that to issue hand written invoice when sales are P50.00 or more and to issue cash register receipts when sales are below P50.00 are confusing and complicated in your transactions; that you are in retail business of radios, transistors and their correlative parts; that majority of your customers are radio and electronic technicians and usually buy several items that will always amount to more than P50.00; that every customer is clamoring for speed and swift system of transaction, otherwise, it will be precarious position in dealing with the customers if you will continue with your obsolete method; that every sale, regardless of the amount, you record it in your cash register machine in order to have accurate records and correct total volume of sales at the end of the day; and that you issue hand written invoices for sales of more than P49.99 together with cash register receipt and this is double recording and work which can be avoided if you will be granted the privilege of exception of Section 204 of the Tax Code. In view of the foregoing representations, this Office finds that your case is a meritorious case within the contemplation of the law and, therefore, hereby grants your request. Accordingly, you may effect individual sales thru the register machine without limitation as to value of purchase made. aisadc Very truly yours, (SGD.) MISAEL P. VERA Commissioner of Internal Revenue By: (SGD.) PRISCILLA R. GONZALES Revenue Operations Head (Legal)