Publishing Section 28 of Presidential Decree No. 1457 Which Amends Section 216 of the National Internal Revenue Code, as Amended

July 24, 1978 REVENUE MEMORANDUM CIRCULAR NO. 048-78 SUBJECT : Publishing Section 28 of Presidential Decree No. 1 457 Which Amends Section 216 of the National Internal Revenue Co de, as Amended TO : All Internal Revenue Officers and Others Concerned For the information and guidance of all concerned, there is quoted hereunder the full text of Section 28 of Presidential Decree No. 1457 which amends Section 216 of the National Internal Revenue Code, as amended. "SEC. 28. Section 216 of the National Internal Revenue Code is hereby amended to read as follows: "SEC. 216. Persons subject to tax to issue receipts or sales or commercial invoices ; contents of registered receipts or invoices . All persons subject to an internal revenue tax shall, for each sale or transfer of merchandise or for services rendered valued at five pesos or more, issue duly registered receipts or sales or commercial invoices, prepared at least in duplicate, showing the date of the transaction, quantity, unit cost and description of merchandise or nature of service: Provided : That in the case of sales, receipts of transfers in the amount of one hundred pesos or more, or, regardless of amount, where the sale or transfer is made by producers, manufacturers, importers, wholesalers, or where the receipt is issued to cover payment made as rentals, commissions, compensations, or fees, the receipts or invoices shall further show the name, business style, if any, and address of the purchaser, customer, or client. The original of each receipt or invoice shall be issued to the purchaser, customer or client at the time the transaction is effected, who, if engaged in business or in the exercise of profession, shall keep and preserve the same in his place of business for a period of five years from the date of the invoice or receipt, while the duplicate shall be kept and preserved by the issuer, also in his place of business, for a like period: Provided : That persons subject to tax, whose gross sales, earnings or receipts during the last preceding year exceed thirty thousand pesos shall, for each sale or transaction, issue a receipt or an invoice, irrespective of the value of the article sold or service rendered. "The Commissioner of Internal Revenue may, in meritorious cases, exempt any person subject to an internal revenue tax from compliance with the provisions of this section. In any event, market vendors selling exclusively domestic meat, fruits, vegetables, games, poultry, fish and other food products are hereby exempted from the provisions of this section. "The provisions of this section, together with the penal provisions in Presidential Decree No. 1254, shall be posted in a prominent place in the establishment covered by requirements thereof." FEATURES OF THE AMENDMENT 1. The amendment requires a receipt or sales or commercial invoice to be issued by all persons subject to an internal revenue tax in the following cases: a. For each sale or transfer of merchandise or for services rendered valued at five pesos (P5.00) or more; or b. Irrespective of the value of the article sold or service rendered, where the gross sales or earnings or receipts during the last preceding year of the person subject to tax exceed thirty thousand pesos. 2. A receipt or invoice shall further show the name, business style, if any, and address of the purchaser/customer or client in the following cases: a. When the sale or receipt of transfer is in the amount of one hundred pesos or more; or b. Regardless of amount, when the sale or transfer is made by a producer, manufacturer, importer, or wholesaler; or c. When the receipt is issued to cover payment made as rentals, commissions, compensations or fees. 3. All classes of market vendors, selling exclusively domestic meat, fruit, vegetables, games, poultry, fish and other food product are exempted from issuing receipts or sales or commercial invoices. This amendment took effect on June 11, 1978. All internal revenue officers and others concerned are enjoined to be guided accordingly and to give this Circular as wide a publicity as possible. aisa dc EFREN I. PLANA Acting Commissioner of Internal Revenue TAN-P4519-F2828-A-8