VAT Ruling No. 009-91

February 12, 1991 VAT RULING NO. 009-91 Atty. Teodoro I. Lucero 8868 Yanque St., Makati Metro Manila S i r : This refers to your letter dated May 12, 1989 requesting clarification of Section 22 of Revenue Regulation No. 5-87, specifically, on the proper manner of recording entries in the purchase and sales journals. cdtech In reply, please be informed that since one important feature of the VAT law is its adaptability to the matching or cross-checking process, the entries in the purchase and sales journals must necessarily be recorded in such a manner as to help achieve the purposes of the law, which is that recording should be done separately by invoice. Matching or cross-checking cannot be effected if the transactions for the day are aggregated. Specifically, recording should be made as follows: In the subsidiary sales journal (1) the sales should be entered separately by invoice, except sales to "non-VAT" persons not exceeding P500.00 per transaction in which case they may be aggregated for the day and entered as a single amount; (2) the sales of capital goods and deemed-sale transactions should be recorded separately by invoice or transaction; (3) the sales made through cash register machines may be totalled for the day and entered as a single amount; In the purchase journal (1) all purchases of goods or services from VAT-registered persons should be entered separately by invoice; (2) the total amount of purchases during the day for goods or services not generating any input tax may be aggregated; (3) every withdrawal of imported goods from Customs custody should be entered as a single transaction. Persons keeping computerized subsidiary journals should formulate a program in such a way that information as to the date, invoice number, VAT registration number and total amount of consideration can be processed and presented chronologically by transaction as well as summarized by VAT registration number for any given period. Attached are formats (Annexes A & B) of a page of the purchase and the sales journal which would satisfy the requirements of Revenue Regulations No. 5-87. Please be guided accordingly. LLjur Very truly yours, JOSE U. ONG Commissioner of Internal Revenue