Woodland Real Estate Development, Inc.

September 26, 2008 BIR RULING [DA-(C-082) 262-08] Section 238; DA-210-07 Woodland Real Estate Development, Inc. 3/F Legaspi Towers 300 Roxas Blvd., Manila Attention: Ms. Flora C. Manalo Vice President Gentlemen : This refers to your letter dated September 4, 2008, requesting confirmation that the presentation of the proofs of payments of percentage tax is not a requirement for the issuance of an authority to print pursuant to Section 238 of the Tax Code of 1997, as amended. It is represented that Woodland Real Estate Development, Inc. (Woodland) is a domestic corporation and a non-vat registered entity engaged in the business of subdivision development and selling of low-cost housing; that sometime August, 2008, Woodland requested for the printing of official receipts from the Revenue District Office having jurisdiction over the business establishment which will be using the invoices or receipts but the processing of the request was held in abeyance and will not be facilitated unless Woodland would submit proof of payment of percentage taxes, hence, this request. In reply, please be informed that Section 238 of the same Tax Code provides that: "Sec. 238. Printing of Receipts or Sales or Commercial Invoices. All persons who are engaged in business shall secure from the Bureau of Internal Revenue an authority to print receipts or sales or commercial invoices before a printer can print the same." In addition, Paragraph II (C) of Revenue Memorandum Order No. 54-98 dated June 1, 1998 which enumerates the Checklist of Registration Requirements provides: "II. Registration Requirements The documents listed hereunder are the mandatory requirements to be submitted by taxpayers wishing to transact business with this Bureau, viz. : C. Securing Authority To Print Receipts and Invoices FOR NEW TAXPAYER 1. Application for Authority to Print Receipts and Invoices ISTHED 2. Job Order 3. Final and clear sample of receipts and invoices 4. Application for Registration/TRU Form 5. Registration Fee FOR OLD TAXPAYER 1. Application for Authority to Print Receipts and Invoices 2. Job Order 3. Final and clear sample of receipts and invoices 4. TRU Form, if applicable 5. Photocopy of the following: a. Payment of Registration Fee b. Previous Authority to Print Receipts and Invoices c. BIR Certificate of Registration 6. Last booklet printed (for verification purposes)" It is clear from the aforesaid provision that the ATP is required in the printing of receipts or sales or commercial invoices. Sales or commercial invoices are issued to the buyer of goods while receipts are issued to buyer of services. In fine, these are the documents issued to evidence a transaction which normally results in realization of income. The above discussion finds support in BIR Ruling No. DA-517-2003 which defined "receipt(s)" as follows: "As defined in Revenue Regulations 12-98, the term "receipt(s)" means a written admission or acknowledgement of the fact of payment in money or other settlement between seller and buyer of goods, debtor or creditor, or persons rendering services and client or customers. Apparently, it is not merely an evidence of sale but necessarily an evidence of payment. This is obvious from the provisions of Section 237 to the effect that the issuance of an invoice is required the moment there is already a sale or transaction of merchandise or services rendered (BIR Ruling No. 046-89, dated May 27, 1989)." ICASEH Section 238 of the 1997 Tax Code, as amended, and as implemented by Revenue Memorandum Order No. 83-99, provides that Authority to Print (ATP) Invoices and Receipts shall be secured from the Revenue District Office having jurisdiction over the business establishment which will be using the invoices or receipts. Accordingly, as gleaned from the above provision of law, this Office confirms your opinion that the presentation of the proofs of payment of percentage tax is not a requirement for the issuance of the Authority to Print. This ruling is being issued on the basis of foregoing facts as represented. However, if upon investigation it shall be disclosed that the facts are different, then this ruling shall be considered null and void. HSTAcI Very truly yours, Commissioner of Internal Revenue By: (SGD.) JAMES H. ROLDAN Assistant Commissioner Legal Service