Whether Debit and Credit Memos are Required to be Registered with the Bureau of Internal Revenue

December 21, 1992 BIR RULING NO. 364-92 238-00 000-00 364-92 Quality Container Corporation No. 37 Eulogia Drive Barrio Kangkong, Quezon City Attention: Mr . Richard C . Cruz Vice President Gentlemen : This refers to your letter dated September 9, 1992, in effect, requesting for a confirmation that debit and credit memos are required to be registered with the Bureau of Internal Revenue. prcd In reply, we quote the pertinent provisions of Revenue Regulations No. 2-90 stating: "Sec. 2. Paragraph (4) of Section 19 of Revenue Regulations No. V-1-, otherwise known as the "Bookkeeping Regulations" as amended by Section 3 of Revenue Regulations No. 2-78 is hereby amended to read as follows: "Sec. 19. Authentication and registration of books, register, or records; authority to print receipts, sales or commercial invoices; registration and stamping of receipts and invoices." "(d) Registration and stamping of receipts and invoices . Before being used, the printed receipts, sales or commercial invoices shall be registered with the revenue district officer where the principal place of business of the taxpayer is located within thirty (30) days from the date of printing the same. The registration of the printed receipts or invoices shall be evidenced by an appropriate stamp on the face of the taxpayer's copy of the authority to print as well as on the front cover, on the back of the middle invoice or receipt of the registered booklet or pad, authenticated by the signature of the officer authorized to place stamp thereon ." (Emphasis Supplied) A credit or debit memo is a memorandum issued in numbered form to a customer client to indicate that the latter's account with the issuer/seller has been increased (credited) or decreased (debited), respectively to the extent of the particular amount described therein. Since debit and credit memos represent evidence of transfer of goods and/or sale of service, they are as vital as receipts and commercial invoice in evidencing business transactions. Such being the case, debit and credit memos as above described have the same use as receipts and invoice which are required to be registered pursuant to the aforequoted regulations. Accordingly, the same should first be registered and stamped at the Revenue District/Collection Agent's Office where the taxpayer's principal place of business is located before they are used. It is understood, however, that this requirement shall be prospective and shall not subject to penalties non-registration of credit and debit memos prior to the issuance of this ruling. cdpr Very truly yours, JOSE U. ONG Commissioner of Internal Revenue