BIR Ruling [DA-215-06]

April 5, 2006 BIR RULING [DA-215-06] Sec. 14 (d) of RR No. V-1; BIR Ruling No. 084-92 Ms. Guia G. Gonzales Ramon Magsaysay High School Espaa, Manila M a d a m : This refers to your letter dated October 4, 2005 requesting, in effect, for a ruling on whether you can be exempt from issuing an official receipt. As represented, you are employed as a public school teacher, you were commissioned to make a module for Lambert Allied Sterilization School (LASS). It was not your main line of work, and it was your first time to work on such task. LASS is requiring you to issue an official receipt before it can release the agreed remuneration. You could not comply with such a requirement because it is not your official business. In reply, please be informed that by requiring you to issue a valid receipt, LASS is assured that it will be able to claim as deduction from its gross income your professional fee. However, in BIR Ruling No. 084-92 dated March 19, 1992, citing Section 14(d) of Revenue Regulations No. V-1, as amended, otherwise known as the "Bookkeeping Regulations," this Office ruled ". . . in case no receipt or invoice was issued by the vendor or the person rendering the service for the reason that he is exempt from the requirement to issue the same, the purchaser, customer or client may require the vendor or the person rendering the service to sign a purchase or expense voucher indicating his name, address, and business style, if any; and shall show the name and address of the purchaser, customer or client, date when the transaction was effected, quantity, unit cost and description of transaction, merchandise or nature of the service rendered, as the case may be. Such being the case, in cases where your clients encounter difficulty in securing official receipts on their purchase from the seller, your client may require the seller to sign a purchase or expense voucher indicating his name, address and business style, if any; and shall show the name and address of the purchaser, customer or client, date when the transaction was effected, quantity, unit cost and description of transaction, merchandise or nature of the service rendered, as the case may be. While the purchase or expense voucher is not considered a receipt or sale or commercial invoice within the purview of Section 238 of the Tax Code, as amended, nevertheless, the purchase or expense voucher must comply with the aforementioned requirements of Section 14(d) of the Bookkeeping Regulations. Moreover, the purchase or expense voucher need not be signed by the purchaser. However, if a receipt or sale or commercial invoice does not conform to the requirements of Section 238 of the Tax Code, as amended and Section 15 of the Bookkeeping Regulations, the purchases or expenditures cannot be deducted as apart of the cost of goods sold. Likewise, the same will not generate input tax credit." aESIHT Moreover, pursuant to Section 4(A) of Rev. Regs. No. 11-2000, marginal income earners are also exempt from compliance with the issuance of registered receipts or sales/commercial invoices prescribed under Section 237 of the Tax Code of 1997. In view of the foregoing, this Office is of the opinion and so holds that in one-time transactions such as your case, LASS may merely require you to sign a purchase or expense voucher which must comply with the requirements of Section 14(d) of the Bookkeeping Regulations. This ruling is being issued on the basis of the foregoing facts as represented. However, if upon investigation, it will be disclosed that the facts are different, then this ruling shall be considered as null and void. Very truly yours, (SGD.) PABLO M. BASTES, JR. OIC-Head Revenue Executive Assistant Legal Service