Transcript File - Susan Dajao Tusoy

Bookkeeping, Invoicing and
Registration Requirements
Presented by:
1
Susan D. Tusoy, CPA, MPS
Asst. Chief, Assessment Division
BIR, Revenue Region 19, Davao City
This presentation covers:
Registration Requirements;
Bookkeeping Requirements; and
Invoicing Requirements.
REGISTRATION
REQUIREMENTS
On Registration
Register your business
 On or before commencement of business
 Before payment of any tax due
 Upon filing of a return, statement or declaration as
required by the NIRC.
Register your employee/s
 within 10 days from date of employment
On Registration
 Secure Taxpayer
Identification Number
 Multiple TIN is punishable by law.
Registration Procedures
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PRIMARY
REGISTRATION
STAGE 1
Application &
Issuance of TIN
SECONDARY REGISTRATION
STAGE 2
Registration of
Business/Practice of
Profession/Employment
Registration of books,
Issuance of ATP, CAS
and Loose-leaf
Pay Annual Registration Fee
Secure Certificate of Registration;
Proceed to Secondary Registration;
Get “Ask for Receipt” Notice
Attend Initial Briefing
On Registration
• Pay Annual Registration Fee of P500.00 upon registration and
every year thereafter on or before Jan. 31
• for every separate or distinct establishment or place of
business, including facility types where sales transactions
occur
Issuance of COR to HO,
Branch and Facility;
Posting of COR and Annual
Registration Fee Return
In a way that is clearly and
easily visible to the public
 Display “Ask For Receipt
Poster” which shall be
issued upon release of
COR
 Penalty: P1,000 and/or
imprisonment of not
more than 6 months.
 Income Tax;
 VAT and/or Percentage Tax;
 Withholding Tax on Compensation;
 Creditable Withholding Tax at Source on certain
income payments;
 Final Withholding Tax on certain income payments;
 Documentary Stamp Tax;
 Excise Tax; and
 Annual Registration Fee.
Tax Type
Income Tax
VAT
Percentage Tax
W/Tax - Compensation
Creditable W/Tax at Source
Final W/tax
Documentary Stamp Tax
Excise Tax
Annual Registration Fee
Head Office (HO)
Only
(Consolidated)
HO or
Branch at
TP’s Option
Both HO and
Branch
Mandatory VAT Registration
Gross Sales/Receipts (actual/ expected) for the past 12
months, except those that are exempt under Sections 109
(1)(A) to (U) of the Tax Code, exceeded P1,919,500.00.
 Any person liable to VAT shall register with the RDO having
jurisdiction over his/ its HO.
 Failure to register as VAT shall make him/ it liable to pay the
output tax, as if he/ it were a VAT-registered person, without
benefit of input tax credits for the period in which he/ it was
not properly registered.
Non-VAT Registration
1. Those
subject to percentage taxes;
2. Those whose transactions are VATexempt under Sect. 109 of Tax Code; and
3. Marginal income earners.
1. Those who are VAT-exempt since annual gross
sales/receipts do not exceed P1,919,500.00;
2. Those who are engaged in mixed transactions;
3. Franchise grantees of radio and/or TV broadcasting
 annual gross receipts do not exceed P10M. This
option, once exercised, is irrevocable.
 Registration for optional VAT is not later than 10 days
before the beginning of the taxable quarter.
 Once registered, the optional VAT taxpayer is liable
to output tax and entitled to input tax beginning the
first day of the month following his registration.
Registration of All Storage
Facilities (RR 2-2012)
All tank facilities, depots or terminals
throughout the Phils., including those
located within the Freeport
Zones/Economic Zones shall be
registered by the owners, lessors or
operators with the BIR Office having
jurisdiction over the said facilities.
It shall be the duty of the transfering taxpayer to
inform the BIR district office where he is registered
of such fact by filing prescribed BIR Form
specifying therein the complete address where
he intends to transfer.
1. Death of an individual not subject to
estate tax;
2. Settlement of estate tax liabilities;
3. Discovery of a taxpayer having
multiple TINs;
4. Dissolution, merger or consolidation
of juridical persons.
1.
2.
3.
4.
5.
6.
Failure to register
Late registration
Late payment of ARF
Failure to register a branch or facility
Acquisition of multiple TINs
Failure to and/or erroneous supply of
information
REGISTRATION FORMS
1901 SELF-EMPLOYED/PROFESSIONALS/TRUST
1902 Employees
1903 CORPORATIONS / GOCC /PARTNERSHIP
1903 GOVERNMENT AGENCIES / LGUs
 WHEN: ON OR BEFORE COMMENCEMENT OF BUSINESS/
BEFORE PAYMENT OF ANY TAX DUE/
UPON FILING A RETURN
10 DAYS AFTER BECOMING AN EMPLOYER
( SEC 2.83.6 Rev. Regulations No. 2-98)
 WHERE: RDO
BOOKKEEPING
REQUIREMENTS
ON BOOKKEEPING REQUIREMENTS
Apply for registration of books of accounts,
basically a Journal, Ledger, and applicable
subsidiary books
The BIR records your latest volume in our registration
database.
All of the above to be done within 30 days from date of
registration
ON BOOKKEEPING
REQUIREMENTS
 Transactions for the day must be entered in books on
or before 12nn the following day. Balances
transferred to the Ledger on day following the end of
month
 It’s not required to register new set of books every
year; only before the pages of current book is almost
used up (RMC 82-2008).
Registration of Books
 Persons required to pay internal
revenue taxes shall keep and maintain
the following books of accounts.
 General Journal
 General Ledger
 Subsidiary Sales
 Register Books to be Kept by Professionals
(RR 7-87)
Register Books to be Kept by
Professionals (RR 7-87)
 In addition to the books and other records,
professionals shall keep and maintain
Register Book which shall be entered
immediately upon acceptance of client of
patient
Register Books to be Kept by
Professionals (RR 7-87)
 Required information:
 Name and address of client or patient
 Date and time of arrival
 Amount of Professional Fee or other considerations
received
 Number and date of the receipt issued covering the
said payment
Books of Accounts
TP whose quarterly gross sales/receipts
exceed P150,000 shall have their books
audited and examined yearly by
independent CPA.
Deadline for Registration
For new registrants -Before commencement of business
Preservation of Books and Records
(RR 17-2013)
Taxpayers are required to preserve their books of
accounts, including subsidiary books and other
accounting records
10 years reckoned from the day the following the deadline
in filing a return
If filed after the deadline
Reckoned from the date of filing of the return, for the taxable year
when the last entry was made in the books of accounts
Retention Period
If the taxpayer has any pending protest or
claim for tax credit/refund of taxes
until the case is finally resolved.
The taxpayer and the CPA have equal
responsibility to maintain and preserve the
records
for a period of ten years
Retention Period
Other accounting records includes
Invoices, receipts
Vouchers
Returns and
Other source documents supporting the entries
Examination and Inspection
 Records shall be kept at all times at the place of
business of the TP
 Upon the demand, the same must be immediately
produced and submitted for inspection
Regular audit
Extra-ordinary audit
for exchange of information by a foreign tax authority
Examinations shall be done in the taxpayer’s
office or place of business or in the Office of the
BIR
INVOICING
REQUIREMENTS
All persons subject to internal revenue tax shall:
For each sale of P25 or more;
Issue duly registered receipts or sales or commercial
invoices;
Prepared at least in duplicate.
Required information:
Date of transaction
Quantity
Unit Cost
Description of merchandise or nature of the
service
TIN of purchaser if VAT-registered
Required information:
Name, business style and address of the purchaser shall
be indicated in the ff. cases –
Seller and buyer are VAT-subject persons;
Receipt covers rentals, commission, compensation or
fees.
Disposition of the receipts/invoices
Original -> purchaser
Duplicate -> retained by issuer
Proper Invoicing and Receipting
of Output Tax RR 18-2011
• Reiterates Sec. 237 of the Tax Code that VAT-registered
taxpayers should separately bill the VAT.
• The amount shall be shown as a separate item in the
invoice or receipt
Principal Receipt/Invoice
(RR 18-2012)
A written account evidencing the
sale of goods and/or services issued
to customers in an ordinary course of
business
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Sale of Goods and Properties
(Includes Cash Sales Invoice and Charge Sales Invoice)
VAT Sales Invoice
Basis of the output tax liability of the seller and the input
tax claim of the buyer
Includes Cash Sales Invoices & Charge Sales Invoices
Non-Vat Sales Invoices
Basis of the Percentage Tax liability of the seller
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Sale of Service and Leasing
of Properties
VAT Official Receipt
Basis of the output tax liability of the seller and
the input tax claim of the buyer
Non-Vat Official Receipts
Basis of the Percentage Tax liability of the seller
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Supplementary Receipts/Invoices
Also known as Commercial Invoices
Documents evidencing delivery, agreement to sell
or transfer of goods and services
Delivery Receipts
Order Slips
Debit and/or Credit Memo
Purchase Order
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Supplementary Receipts/Invoices
 Job Order
 Provisional/Temporary Receipt
 Acknowledgement Receipt
 Collection Receipt
 Cash Receipt
 Bill of Lading
 Billing Statement
 Statement of Account
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Supplementary Receipts/Invoices
 Includes any other documents, by whatever name it is
known or called
 whether prepared manually or pre-printed/prenumbered loose-leaf or computerized, issued to
customers
 Not valid to support the claim of Input Taxes by buyers of
goods and/or services
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Salient Features
 One application shall be filed for ATP per establishment
(HO or branch)
 Filed with RDO/LT Office where the HO is registered
 Each application shall be issued a separate ATP
 Independent series of serial number for all
receipts/invoices (principal & supplementary)
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Salient Features
The approved ATP shall be
valid only upon full usage or
five (5) years from issuance of the same, whichever comes
first.
The replicate copy of the ATP issued shall be printed
at the inside back portion of the cardboard cover
50
Salient Features
ONLY BIR ACCREDITED PRINTERS shall have
the exclusive authority to print principal
and supplementary receipts/invoices.
Reiterated under RMC 61-2013
Issuing receipts/invoices printed by nonaccredited printers is tantamount to issuing
invalid receipts/invoices
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Transitory Provision
Expiring ATP for invoices/receipts (principal
and supplementary) shall apply for a new
ATP not later than 60 days prior to actual
expiry date
52
Validity of Unused/Unissued
Commercial Invoices
RR 18-2012
(AMENDED)
Those printed prior to Jan. 18, 2013 June 30, 2013
shall be valid until
RMC 442013
(AMENDED)
RMC 522013
Aug. 30,
2013
Receipts with ATP prior to Jan. 1,
2011 shall be valid until
Aug. 30,
2013
Receipts with ATP dated Jan. 1,
2011 to Jan. 17, 2013 shall be
valid until
Oct. 31,
2013
(provided that new ATP was issued on or before
Aug. 30, 2013)
Transitory Provision
Deadline for filing an ATP
to replace receipts / invoices printed prior to Jan.
18, 2013 shall be maintained as of April 30, 2013
Application for new ATP filed after April 30, 2013 is
deemed to have been filed out of time and
subject to a penalty of P1,000.00
After Oct 31, 2013 – P50,000.00 per memo od CIR
dated April 30, 2013
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Transitory Provision
Unused/unissued receipts/invoices shall be
surrendered to the RDO where the taxpayer is
registered
Submit inventory listing of unused
invoices/receipts.
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Transitory Provision
Issuance of receipts/invoices after its
validity constitute a violation of Sec. 264 of
the NIRC of 1997
It is considered as if no receipt/invoice was
issued
Transitory Provision
No deduction from gross income shall be
allowed using these invoices/receipts as they
are not valid proof of substantiation
In case of VAT-registered persons, no input tax
may be claimed using these receipts/invoices
On issuance of tax clearance
(RMC 52-2013)
To fully implement the requirements under
RR 18-2012, a certified true copy of the ATP
shall be included as attachment
No ATP shall be a ground for non-issuance
of tax clearance for whatever purposes
Salient Features
 A list of all duly-accredited printers per RDO is posted
and regularly updated at the BIR website
(www.bir.gov.ph)
 Validity of Provisional Accreditation granted to printers
is extended from Aug. 14, 2013 to Dec. 31, 2013. (RMC
54-2013)
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On Compromise Penalties
RR 56-2000
Common Omissions
in the issuance of receipts
Applicable Penalties
1st Offense
2nd Offense
Failure to issue receipts
P 10,000
Refusal to issue receipts
25,000
Issuance of receipts that do not truly
1,000
reflect/contain all the info. required therein
Duplicate copy is blank
10,000
Possession or use of unregistered invoice
10,000
Receipts not bearing any of the ff:
consecutive no., name of taxpayer, business
style, business address, TIN, Name, address,
date, authority no. of printer
5,000
P 20,000
50,000
2,500
20,000
20,000
10,000
The end