BIR Ruling

July 21, 1976 Mr. Cresenciano P. Bucu Crescent Trading 34 I. Bautista St., Bo. Panghulo Malabon, Rizal S i r : In reply to your letter dated June 10, 1976, I have the honor to inform you that fish sauce (patis) as well as the small shrimp and fish "bagoong" which, after being salted, are bottled or canned are subject to the 5% sales tax imposed by Section 186-B of the Tax Code. The costs of raw fish and shrimps as well as the ordinary salt used in the manufacture of said products are deductible from the gross selling prices in determining the 5% sales tax due thereon. cdt However, in order to establish the deductible costs of the fish and shrimps purchased from fishermen or market vendors who do not issue invoices, you are required to comply with the following provision of Section 14 of Revenue Regulation No. V-1, as amended by Revenue Regulations No. 4-65, viz: "SEC. 14. Vouchers for transaction : "xxx xxx xxx "Every purchase or expenditure by a taxpayer subject to these regulations shall also be supported by an invoice or a receipt issued by the vendor or the person rendering the service. In case an invoice or a receipt is not issued, the taxpayer concerned shall require the vendor to sign a purchase or expense voucher showing the date, the quantity and description of the articles purchased or the services rendered, the rate of tax to which the articles were subjected, if subjected to the advance sales tax in the case of importation or to the sales tax in the case of locally manufactured or produced articles, the consideration paid therefor, and the name and address of the vendor or person rendering the service together with the number, date and place of issue of his residence certificate." aisa dc Very truly yours, EFREN I . PLANA Acting Commissioner of Internal Revenue TAN-1456-040-3 "TAXPAYERS SHOULD INDICATE THEIR TAN IN ALL COMMUNICATIONS TO THE BIR."