TO MAKE doing business in the Philippines easier, the Bureau of Internal Revenue (BIR) recently issued Revenue Memorandum Circular (RMC) 28-2019, allowing the use of BIR-printed receipts/invoices (BPRs/BPIs).
Under RMC 28-2019, new businesses can immediately begin their operations upon registration with the BIR while waiting for their receipts/invoices to be printed.
Prior to the release of RMC 28-2019, startups had to wait before they could be up and running, as they needed to secure an authority to print (ATP) for duly authorized receipts or sales invoice, and then have an accredited printer produce the first set of receipts/invoices—a process that typically takes weeks to accomplish.
Startups may use the BPRs/BPIs within 15 days from the date of BIR registration. The number of booklets, to be solely issued and printed by the BIR, will be limited to the estimated number of transactions for the period. However, new business registrants may use their own receipts/invoices covered by the ATP, should such become available before the lapse of 15 days.
The BPRs/BPIs must be issued as principal evidence in the entity’s sales or property leases and, as such, can be used for claiming expenses as a deduction from ordinary gross income or claiming input tax credit, subject to existing rules and regulations on invoicing requirements for taxation purposes.
SOURCE:
P&A GRANT THORNTON
Certified Public Accountants
Punongbayan & Araullo (P&A) is the
Philippine member firm of Grant Thornton
International Ltd.