BIR Ruling

September 4, 1969 The Laguna and San Pablo City Coconut Dealers San Pablo City Gentlemen : This refers to your letter addressed to the Honorable Speaker of the House of Representatives dated June 14, 1968 protesting the enforcement by this Office of the Bookkeeping Regulations relative to the issuance of purchase invoices. LibLex In reply, I have the honor to inform you that as coconut dealers, you are subject to internal revenue taxes, and therefore, you should comply with the requirements of the Bookkeeping Regulations regarding issuance of purchase invoices, particularly Section 14 thereof which, among others, provides: "SEC. 14. Vouchers for transaction . Persons paying internal revenue taxes who are required to keep the books of accounts mentioned in Section 334 of the National Internal Revenue Code shall have a voucher for each entry in their books. The voucher for each entry in their books. The voucher may be an invoice, receipt, check or other document, which shall show the details of each transaction. "xxx xxx xxx. "Persons paying internal revenue taxes other than the percentage tax shall issue an invoice or receipt for any amount of money received by them in connection with their business. However, in case the amount received is less than P2, no invoice or receipt need be issued, but unless it is issued, the amount be recorded immediately upon receipt thereof in a record of petty sales or receipts, the entries in which shall be summarized at the end of the day and the total transferred to the journal or internal-revenue sales or receipts books. "xxx xxx xxx. "Every purchase or expenditure by a taxpayer subject to these regulations shall also be supported by an invoice or 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 consideration paid therefor, and the name and address of the vendor or lessor together with the number, date and place of issue of his residence certificate." Very truly yours, (SGD.) MISAEL P. VERA Commissioner of Internal Revenue