Purchase Order Subject to Registration and Approval by the BIR Before Actual Use of the Same

August 29, 1967 BIR RULING NO. 030-67 Mr. Vicente B. Vasquez Certified Public Accountant 362 Quezon Boulevard M a n i l a S i r : This refers to your letter dated August 11, 1967 requesting information on the following: "We would like your good Office to give us an opinion whether PURCHASE ORDER be submitted with the Stamping Section, Registration Division of the Bureau of Internal Revenue, like Sales Invoices, Delivery Receipts etc. If used, without stamping thereof, what is the violation and the corresponding penalty under the Bookkeeping Regulations. "Definition of a Purchase Order: A document authorizing a vendor to deliver described merchandise or materials at a specified price. Upon acceptance by a vendor, a purchase order becomes a contract." In reply thereto, I have the honor to inform you that purchase order is like 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 the Revenue Regulations No. V-1, as amended, otherwise know as the Bookkeeping Regulations. As the requirement of submitting to the BIR books of accounts, invoices, receipts and other accounting records for approval and registration prior to their use is mandatory, failure to comply therewith constitutes a violation of Section 352 of the National Internal Revenue Code, in relation to Section 25 of Revenue Regulations No. V-1, otherwise know as the Bookkeeping Regulations, and punishable by a fine of not more than P300.00 or by imprisonment of not more than 6 months, or both. Very truly yours, (SGD.) MISAEL P. VERA Commissioner of Internal Revenue