BIR urged to boost info drive on new invoicing rule to avoid fines
By John Victor D. Ordoñez, Reporter
A PHILIPPINE senator is urging the Bureau of Internal Revenue (BIR) to double up on efforts to inform taxpayers of a new rule requiring invoices instead of official receipts when filing taxes, to spare companies from unnecessary penalties. Under the new Ease of Paying Taxes Act, signed by President Ferdinand R. Marcos, Jr. in January, taxpayers must start issuing valid invoices instead of official receipts in declaring output taxes and claiming input taxes for both sales of goods and services.
If a sale is exempt from value-added tax (VAT) the term “VAT-exempt sale” must be written or printed on the invoice.
“I urge the BIR to enhance its information dissemination campaign on the changes brought about by the Ease of Paying Taxes Act, particularly on the issuance of invoices in place of official receipts to ensure that taxpayers are well-informed on the said changes,” Senator Sherwin T. Gatchalian, who sponsored the Senate bill of the measure, said in a statement.
“All applications and communications with the BIR should be conducted through online channels and taxpayers should not be required to visit BIR branches in person,” he added.
Taxpayers who fail to file any return with proper documents and pay the taxes due would be liable to a 25% penalty of the amount due under the new law.
The new law allows returns to be filed electronically and manually with any authorized agent bank, Revenue District Office, tax software provider.
The invoicing regulation took effect on April 27 while the deadline for companies to report unused receipts was on May 27.
“The BIR should ensure that the implementation of this particular provision of the law, intended to streamline issuance of proof of transactions, will not entail additional cost and burden on enterprises, especially those belonging to the micro, small and medium sector,” Mr. Gatchalian said.
