Whether Purchase or Expense Vouchers Should Comply with the Requirements Imposed on Sale or Commercial Invoices-Registration with the BIR

February 10, 1995 BIR RULING NO. 018-95 238 108 000-00 018-95 Siguion Reyna Montecillo & Ongsiako 8755 Paseo de Roxas, Philcom Bldg., Makati, Metro Manila Attention: Atty . Jose Lis C . Leagogo Gentlemen : This refers to your letter dated November 19, 1993 stating that there are instances when your clients encounter difficulty in securing official receipts on their purchases from the seller; and that pursuant to Section 14 (d) of Revenue Regulations V-1 otherwise known as the Bookkeeping Regulations every purchase or expenditure by a taxpayer subject to the regulations shall be duly supported by a receipt or invoice issued by the vendor or the person rendering the service in accordance with Section 15 of the regulations. Should any of the receipts or invoices shall be deemed inadequate for documentation or substantiation of the particular transaction. However, 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 style, if any; and shall show the name and address of the purchaser, quantity, unit cost and description of transaction, merchandise or nature of the service rendered, as the case may be. cdll In connection therewith, you now request a ruling on the following: 1. Whether such purchase or expense voucher should comply with the requirements imposed on sale or commercial invoices-registration with the BIR, printed etc.; 2. Whether the purchaser should also sign the purchase or expense voucher on the appropriate space; 3. What is the effect on the client's purchase for tax purposes if the requirements as to form and registration are not complied with. In reply thereto, please be informed that pursuant to Section 14 (d) of Revenue Regulations No. V-1, as amended, otherwise known as the Bookkeeping Regulations, every purchase or expenditure by a taxpayer subject to these regulations shall be duly supported by a receipt or invoice issued by the vendor or the person rendering the service in accordance with Section 15 of these regulations. Should any of the receipts or invoice lack any of the information required to be indicated therein, such receipts or invoices shall be deemed inadequate for documentation or substantiation of the particular transaction. However, 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 expenses 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, merchandise or nature of the service rendered, as the case may be . Such being the case, in case where your clients encounter difficulty in securing official receipts on their purchases 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 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 purchasers or expenditure can not be deducted as part of the cost of goods sold. Likewise, the same will not generate input tax credit. Very truly yours, LIWAYWAY VINZONS-CHATO Commissioner of Internal Revenue