Taxability of a "Sari-Sari" Store Owner

July 29, 1958 BIR RULING NO. 427-58 Mr. Ireneo O. Pinzon 5-A Annapolis St. Cubao, Quezon City S i r : This is with reference to your letter dated June 26, 1958, requesting information on your taxability as a "sari-sari" store owner. In answer thereto, I have the honor to inform you that as "sari-sari" store owner, you are subject to the graduated fixed annual tax prescribed in Section 182 of the Tax Code, the amount of which at the start of business is P10.00, and thereafter, the amount shall depend upon your gross sales during the preceding year. As a person required by law to pay internal revenue taxes, you must keep a journal and a ledger, or their equivalents. However, if your gross quarterly sales do not exceed P5,000.00, you may keep only a simplified set of bookkeeping records duly authorized by the Secretary of Finance, wherein all transactions and results of operations are shown and from which all taxes due the Government may readily and accurately be ascertained and determined anytime of the year. You are further required to issue, for each sale or transfer of merchandise valued at P2.00 or more, sales or commercial invoices or receipts. Sales of less than P2.00 need not be receipted for, but unless a receipt is issued, such sales must be recorded in a record of petty sales, the entries in which shall be summarized at the end of the day and the total transferred to the journal or record of daily sales and cash receipts. If your sales during the last preceding year exceeds P20,000.00, you must always issue a sales receipt or invoice on every sale made by you regardless of the amount thereof. Before using the books of accounts and sales receipts or invoices herein mentioned, they must first be presented to the Regional Office thereat for registration and approval. Very truly yours, (SGD.) MELECIO R. DOMINGO Acting Commissioner of Internal Revenue