Authority to Use Cash Vouchers

May 3, 1988 BIR RULING NO. 170-88 181 311-87 170-88 Gentlemen : This refers to your letter dated October 16, 1987 stating that some of your members are traders who buy agricultural or marine products in their original state from farmers or fishermen who do not issue official receipts or sales invoice covering said purchases; while some are processors or manufacturers who buy their raw materials consisting of agricultural or marine products in their original state from farmers or fishermen who also do not issue official receipts or sales invoices covering said purchases. You now request for a ruling that the aforesaid traders, processors, and manufacturers be authorized to use cash vouchers as evidence of their purchases from small suppliers e.g., farmers and fishermen. In reply thereto, please be informed that said agricultural and marine products in their original state, are exempt from the value-added tax. [Sec. 103(b), Tax Code, as amended by E.O. No. 273] Moreover, it is possible that most of the small farmers and fishermen are also exempted from paying income tax. Accordingly, these situations are meritorious cases which justify exemption from compliance with Section 238 of the Tax Code which requires persons subject to an internal revenue tax to issue sales invoices. Since the suppliers do not issue sales invoices and the aforesaid traders, manufacturers and processor are in fact voluntarily providing the evidence of their purchases from said suppliers, this Office hereby authorizes them to use cash vouchers to prove their respective purchases of agricultural or marine products in their original state from the marginal farmers and fishermen. cdtech Very truly yours, (SGD.) BIENVENIDO A. TAN, JR. Commissioner