BIR Ruling [DA-181-05]

April 20, 2005 BIR RULING [DA-181-05] Section 237 Tax Code of 1997; DA-086-90 Department of Health Bureau of Food and Drugs Civic Drive, Filinvest Corporate City Alabang, Muntinlupa City Attention: Prof. Leticia-Barbara B. Gonzales, M.S. Director IV Gentlemen : This refers to your letter dated November 4, 2003 requesting a clarification on the issuance of official receipts by merchants who sell to you items worth less than P50.00 in a single receipt. It appears that one of the functions of the Bureau of Food and Drugs is to collect/purchase products such as drugs, processed foods, cosmetic, medical devices and household hazardous products; and that for purposes of reimbursement of the cash used in the purchase of these products, the Bureau's Commission on Audit requires official receipts for each transaction. In reply, please be informed that Section 237 of the Tax Code of 1997 provides: "SEC. 237. Issuance of Receipts or Sales or Commercial Invoices. All persons subject to an internal revenue tax shall, for each sale or transfer of merchandise or for services rendered valued at Twenty-five pesos (P25.00) or more, issue duly registered receipts or sales of commercial invoices, prepared at least in duplicate, showing the date of transaction, quantity, unit cost and description of merchandise or nature of service:" IN VIEW OF THE FOREGOING, for sales or transfer of merchandise or for services rendered valued at Twenty-five pesos (P25.00) or more, duly registered receipts or sales or commercial invoices shall have to be issued by the seller. In the event, there is failure on the part of the seller to issue receipts, the buyer is obliged to ask for a receipt covering the transaction. aSTHDc This ruling is being issued on the basis of the foregoing facts as represented. However, if upon investigation, it will be ascertained that the facts are different, then this ruling shall be considered void. Very truly yours, Commissioner of Internal Revenue By: (SGD.) JOSE MARIO C. BUAG Deputy Commissioner Legal and Inspection Group