BIR Ruling

June 18, 1970 Atty. Alejandro B. Afurong 736 Matimyas, Sampaloc Manila S i r : This refers to your letter dated June 12, 1970 stating the following: "My client is the distributor of a well-known brand of pen and ink. In selling these articles to its customers, my client issues invoices which are duly approved by and registered with the BIR. In making the sales, however, my client usually delivers the merchandise to the customers. I will appreciate your answers to the following questions, viz.: cdta 1. In making the sales and delivering the merchandise to the customers, will the issuance of the covering sales invoice duly approved by and registered with the BIR be sufficient? In other words, there is no necessity for issuing the corresponding delivery receipt to the customer. 2. The BIR ruling is to the effect that a delivery receipt should first be approved and registered with the BIR before the same could be used. Considering, however, that a delivery receipt is used more for the convenience of the parties to the transaction and that if at all used simultaneously with an invoice, the contents of the delivery receipt would simply confirm only to some extent the contents of said invoice, is it not superfluous to require the approval and registration with the BIR of the delivery receipt before using the same in conjunction with a duly approved and registered invoice? In short, there being full compliance with the regulations when a regularly approved and registered invoice is issued to cover a particular transaction, may not a delivery receipt, not approved by and registered with the BIR , be issued simultaneously simply for the convenience of the parties to the transactions? 3. Will the BIR approve and register the form of an invoice designed in such a way that it could serve the dual purpose of an invoice and a delivery receipt?" In reply thereto, I have the honor to inform you as follows: 1. Under the Bookkeeping Regulations (Rev. Regulations No. V-1) the issuance of sales invoice in making the sales and delivering the merchandise to the customers is sufficient. 2. A sales invoice is distinct and different from a delivery receipt. As the names connote, a sales invoice is evidence of a sale while delivery receipt is evidence of the delivery to and receipt by the purchaser of the subject-matter of the sale, the delivery receipt must necessarily contain a list of the articles sold and delivered and the price thereof. Delivery receipts used in accompanying the delivery of goods to customers are, like the regular invoice and receipts, a part of the accounting records and, therefore, subject to registration and approval by this Office before the actual use of the same, pursuant to Section 19 of Revenue Regulations No. V-1, as amended (BIR Ruling No. 67-028). Accordingly, if your client in effecting deliveries of its goods to its customers uses delivery receipts to accompany the goods delivered, said delivery receipt must first be registered and approved by this Office prior to the actual use thereof. 3. This Office does not approve and register a form for multiple purpose. A sales invoice is registered and approved as such sales invoice and a delivery receipt is registered and approved as such delivery receipt. Very truly yours, MISAEL P. VERA Commissioner of Internal Revenue