Compliance With the Bookkeeping Regulations

June 21, 1960 BIR RULING NO. 272-60 Miss Maxima Cuya Libmanan, Camarines Sur M a d a m : In reply to your letter dated February 25, 1969, I have the honor to inform you of the following: 1. All persons required by law to pay internal revenue taxes shall keep a journal and a ledger, or their equivalents. However, those whose gross quarterly sales, earnings or receipts do not exceed P5,000.00 may keep and use only a simplified set of bookkeeping records duly authorized by the Secretary of Finance, unless they choose to use the journal and ledger. 2. A taxpayer is required to register his books of accounts if in the province to the Provincial Revenue Officer or to the Municipal Treasurer for approval before using them, but before registering, the privilege tax receipt should be first presented. 3. All persons subject to internal revenue tax are required to issue sales invoices or receipts where the merchandise sold or services rendered is valued at P2.00 or more. Where the value of goods sold or services rendered is less than P2.00 a receipt or invoice need not be issued but unless a receipt is issued the sale must be entered in a record of petty sales which shall be summarized at the end of the day and the total transferred to the journal or internal revenue sales book or book of receipts. The record of petty sales or receipts may be dispensed with if a cash register machine with roll sheets is used to record all petty transactions. The entries in the roll sheets shall be summarized at the end of the day and the total transferred to the journal or to the internal revenue sales or receipt book. The said roll sheets shall be identified by the signature or initials of the taxpayer or his bookkeeper or manager and shall show the dates of the transactions recorded therein. 4. In order to comply with the bookkeeping regulations, the invoice or receipt must contain the same, address and the business style, if any, of the taxpayer and such columns as may be necessary and appropriate for the business of the taxpayer concerned. The said invoices or receipts should be serially numbered, bound in booklets of 50 and 100 and prepared in duplicate. 5. A taxpayer shall, before ordering invoices or receipts for printing, if in the province, give a written notice to the Provincial Revenue Officer or to the Municipal Treasurer, stating therein the name and address of the printer, the number of booklets or invoices or receipts ordered and the inclusive serial numbers thereof, and submitting therewith a sample of the invoice or receipt proposed to be used. Very truly yours, (SGD.) MELECIO R. DOMINGO Commissioner of Internal Revenue