Amending Sections 14 and 15 of Revenue Regulations No. V-1, the Bookkeeping Regulations

January 22, 1965 REVENUE REGULATIONS NO. 04-65 SUBJECT : Amending Sections 14 and 15 of Revenue Regulations No. V-1, the Bookkeeping Regulations TO : All Internal Revenue Officers and Others Concerned Pursuant to Section 338, in relation to Section 4(j) of Commonwealth Act No. 466, otherwise known as the National Internal Revenue Code, the following regulations amending sections 14 and 15 of Revenue Regulations No. V-1, the Bookkeeping Regulations, are hereby promulgated and shall be known as Revenue Regulations No. 4-65. lexlib SECTION 1. Section 14 of Revenue Regulations No. V-1, the Bookkeeping Regulations, is hereby amended to read as follows: "SEC. 14. Vouchers for transaction . Persons paying internal revenue taxes who are required to keep the books of accounts mentioned in section 334 of the National Internal Revenue Code shall have a voucher for each entry in their books. The voucher may be an invoice, receipt, check or other document, which shall show the details of each transaction. "Persons subject to tax shall issue a sales or commercial invoice for each sale or transfer of merchandise or for services rendered valued at P2 or more. In case the transaction is valued at less than P2, the taxpayer need not issue any invoice, but unless it is issued, the transaction must be recorded immediately after it is effected in a record of petty sales or transactions the entries in 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. If the gross sales or receipts of a person during the preceding year exceed P20,000, every sale or transaction effected by him shall be covered by an invoice, irrespective of the amount of the sale or transaction. "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 receipts 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 therein recorded. "Every purchase or expenditure by a taxpayer subject to these regulations shall also be supported by an invoice or a receipt issued by the vendor or the person rendering the service. In case an invoice or a receipt is not issued, the taxpayer concerned shall require the vendor to sign a purchase or expense voucher showing the date, the quantity and description of the articles purchased or the services rendered, THE RATE OF TAX TO WHICH THE ARTICLES WERE SUBJECTED, IF SUBJECTED TO THE ADVANCE SALES TAX IN THE CASE OF IMPORTATION OR TO THE SALES TAX IN THE CASE OF LOCALLY MANUFACTURED OR PRODUCED ARTICLES, the consideration paid therefor, and the name and address of the vendor or PERSON RENDERING THE SERVICE together with the number, date and place of issue of his residence certificate. "The COMMISSIONER of Internal Revenue may, in meritorious cases, exempt a person from compliance with these regulations." SECTION 2. Section 15 of Revenue Regulations No. V-1, the Bookkeeping Regulations, is hereby amended to read as follows: "SEC. 15. Form and manner of issuance of invoices and receipts . An invoice or a receipt, in order to comply with the requirements of these regulations, must be serially numbered and made at least in duplicate. They shall be bound in the form of booklets or pads of 50 or 100 each, and shall show, among other things, the name and address and the business style, if any, of the person issuing the same, and shall contain such columns as may be necessary and appropriate for the business of the taxpayer concerned. The invoices or receipts may have as many duplicate copies as may be necessary for the purposes of the taxpayer, but the duplicate copies shall bear the same serial number as the original. "Where the transaction is required to be covered by an invoice or receipt, the same shall be issued at the time the transaction is effected and the original thereof delivered to the purchaser or to the person from whom payment is received. In the case of sales invoices, THE INVOICE MUST show the date of the transaction, the quantity and description of the merchandise, the unit cost, THE RATE OF SALES TAX TO WHICH THE PRODUCTS OR ARTICLES ARE SUBJECT OR WERE SUBJECTED IF ISSUED BY PRODUCERS, MANUFACTURERS, IMPORTERS, OR WHOLESALERS, and the total price. IN CASE OF SALES, REGARDLESS OF AMOUNT, BY PRODUCERS, MANUFACTURERS, IMPORTERS, OR WHOLESALERS TO RETAILERS OR ANY BUSINESS ESTABLISHMENT, THE INVOICE MUST FURTHER SHOW THE NAME, OR STYLE, IF ANY, THE BUSINESS ADDRESS AND THE NUMBER, DATE, AND KIND OF PRIVILEGE TAX OF THE PURCHASER/RETAIL DEALERS IN LOCALLY PURCHASED ARTICLES, UNLESS REQUESTED BY THE PURCHASERS, NEED NOT INDICATE IN THE SALES INVOICES THE RATE OF TAX TO WHICH THE ARTICLES SOLD HAD BEEN SUBJECTED. In case of a sale or transfer in the amount of P50 or more, the invoice shall also show the name, or style, if any, the business address of the purchaser, and the number, date, and place of issue of his residence certificate. In the case of other invoices, THE INVOICE MUST show the date, the description of the articles or the nature of the service, the consideration paid therefor, and the name, address, the residence certificate of the person furnishing the articles or rendering the service. The residence certificate need not appear in the invoice when the other party to the transaction is a corporation or a registered partnership or association." cdlex SECTION 3. Effectivity . These regulations shall take effect upon publication in the Official Gazette. RUFINO G. HECHANOVA Secretary of Finance Recommended by: BENJAMIN N. TABIOS Acting Commissioner of Internal Revenue