BIR further clarifies EOPT invoicing compliance
Other Relevant Tax Updates:
- TAX & BUSINESS-RELATED NEWS [JULY 11-17]
- BIR FURTHER CLARIFIES EOPT INVOICING REQUIREMENTS UNDER RR NO. 7-2024
I. TAX & BUSINESS-RELATED NEWS [JULY 11-17]
- SEIPI pushes for restoration of PEZA autonomy
- St. Luke’s sets P24-B expansion program
- Maharlika Corp. eyes issuing ‘thematic sub-funds’
- Grace period ends: Online vendors must now pay withholding tax
- NEDA Board OKs changes in Laguna Lakeshore Road Network project
- Thailand set to roll out $13.8B handout plan in digital money to citizens
- SEC launches eSECnature to foster sustainable capital market operations
- SEC probes case of incorporator of 193 companies
- DTI onboards 300K MSMEs
- Philippines will be Taylor Swift-ready by 2028, CIAC exec says
- PEZA signs registration contract for new Cebu IT Park
- BOI approves P9.59-billion agricultural projects in H1 of 2024
- Razon group investing P1B to fix Bohol’s electricity supply
- PLDT unit to open Laguna data center
- TPLEx extension to start construction next year — DPWH
II. BIR FURTHER CLARIFIES EOPT INVOICING REQUIREMENTS UNDER RR NO. 7-2024
Revenue Memorandum Circular (RMC) No. 77-2024 issued on July 11, 2024, clarifies the invoicing requirements under Revenue Regulation (RR) No. 7-2024, as amended by RR No. 11-2024.
Highlights include:
- VAT-registered sellers must issue an invoice for every sale regardless of the amount. Non-VAT registered sellers must issue an invoice for single sales over Php 500.00, upon buyer request, or if total daily sales under Php 500.00 exceed Php 500.00.
- The invoice is the primary sales record, requiring an Authority to Print (ATP) for printing. However, during the transition sellers can convert unused Official Receipts into invoices.
- The seller can convert the Official Receipt to an invoice if it includes all required information under Section 6(B) of RR No. 7-2024, including quantity, unit cost, and description of goods or services. Missing information can be stamped on the document.
- Taxpayers may use any descriptive name for their invoice, such as “Sales Invoice,” “Cash Invoice”, “Charge Invoice”, “Credit Invoice”, “Billing Invoice”, “Service Invoice”; provided the word “Invoice” is prominently printed.
- Service providers must now issue a Billing Invoice upon billing instead of a Billing Statement or Statement of Account.
- Sellers cannot issue an invoice upon payment but may issue an Official Receipt, Payment Receipt, or Acknowledgement Receipt upon collection. An invoice is for documenting the sale of goods or services and may acknowledge receipt of payment for the transaction.
- Taxpayers transitioning from Official Receipt to Sales Invoice or equivalent must apply for a new ATP Invoice. Different types or names of invoices should start with separate serial numbers or use prefixes/suffixes for distinction. Official Receipts used as supplements should continue from their last approved serial number.
- Taxpayers using CRM/POS/e-Receipting/e-Invoicing systems can replace “Official Receipt” with a descriptive term for their invoices. The renamed invoice’s serial number should continue from the last issued Official Receipt. Sellers must submit a Notice to the RDO/LT Office/LT Division with details of the starting serial number and issuance date. The RDO will forward the Notice to the Head Office, retaining a duplicate for reference.
- Unused Official Receipts must be converted to invoices through an Inventory Report (Annex C) to the BIR by July 31, 2024. Taxpayers using CRM/POS or E-Invoicing software must submit a Notice (Annex D) for renaming, due within 30 days of system reconfiguration or by December 31, 2024. Submit both reports to the RDO/LT Office/LT Division or through the TRRA Portal email to Compliance.
- A VAT-registered person with mixed transactions may issue a single invoice with breakdowns for Vatable, VAT-Exempt, and Zero-Rated sales, or opt for separate invoices where “VAT-Exempt Sale” or “Zero-Rated Sale” must be clearly indicated.
- Supplementary documents like Official Receipts are not proof of sales. Failure to issue required invoices incurs penalties of Php 1,000.00 to Php 50,000.00 and 2 to 4 years imprisonment.
- Prior to April 27, 2024, issue an Invoice upon collection. From April 27 onwards, issue an Invoice on the sale date. Use converted Official Receipts as invoices (struck through and stamped) until December 31, 2024, or reconfiguration completion, whichever comes first, and manual ones until fully consumed. Upon collection, issue a Payment Receipt, Official Receipt, Collection Receipt, or Acknowledgement Receipt.
- Non-stock non-profit entities issue Non-VAT Official Receipts, Acknowledgment Receipts, or Donation Receipts for donations, detailing donor name, donation date, type (e.g., monetary or in-kind), and purpose (e.g., construction, medical expenses). If involved in profitable activities, they must issue invoices for all business transactions, including sales of goods or services.
SEIPI pushes for restoration of PEZA autonomy [The Philippine Star, July 17, 2024]
With moves to amend the CREATE Act through the CREATE to Maximize Opportunities for Reinvigorating the Economy (MORE) bill, he said the group wants the proposed changes to include bringing back the autonomy of the PEZA to approve incentives for projects in ecozones.
https://www.philstar.com/business/2024/07/17/2370637/seipi-pushes-restoration-peza-autonomy
St. Luke’s sets P24-B expansion program [Philippine Daily Inquirer, July 17, 2024]
St. Luke’s Medical Center (SLMC) is investing as much as P24 billion to expand its operations amid expectations of a boom in medical tourism as it received government recognition as a leading medical tourism facility.
https://business.inquirer.net/468964/st-lukes-sets-p24-b-expansion-program
Maharlika Corp. eyes issuing ‘thematic sub-funds’ [GMA News Online, July 16, 2024]
Thematic funds refer to equity mutual funds that invest in equities that are tied to a theme such as infrastructure, energy, manufacturing, among others.
Grace period ends: Online vendors must now pay withholding tax [The Philippine Star, July 16, 2024]
“Electronic Marketplace Operators will begin imposing Withholding Tax against their sellers/merchants starting July 15, 2024. We have already extended this by 90 days. No further extensions will be given,” Lumagui said in a statement.
NEDA Board OKs changes in Laguna Lakeshore Road Network project [GMA News Online, July 16, 2024]
Initially approved in 2021, the LLRB project entails the construction of a 37.5-kilometer primary road and a 12.0-kilometer viaduct from Lower Bicutan, Taguig, to Tunasan, Muntinlupa, along with a 25.5-kilometer shoreline viaduct and embankment from Tunasan, Muntinlupa, to Calamba, Laguna.
Thailand set to roll out $13.8B handout plan in digital money to citizens [Inquirer.Net, July 16, 2024]
The government announced in April the widely criticized ambitious plan, named the “Digital Wallet,” meant to give 10,000 baht (about $275) to 50 million citizens in digital money to spend at local businesses.
SEC launches eSECnature to foster sustainable capital market operations [Manila Standard, July 15, 2024]
The Securities and Exchange Commission (SEC) said it is accelerating efforts to foster a sustainable capital market and business sector with the launch of Sustainable Enterprise Collaboration Network (eSECnature).
SEC probes case of incorporator of 193 companies [ABS-CBN News, July 15, 2024]
The Securities and Exchange Commission (SEC) said on Monday it is investigating the case of Navy Lt. Jessa Mendoza, whose name appears as incorporator of 193 companies.
https://news.abs-cbn.com/business/2024/7/15/sec-probes-case-of-incorporator-of-193-companies-1553
DTI onboards 300K MSMEs [The Philippine Star, July 15, 2024]
During the National MSME Summit 2024 held last Saturday, Trade Secretary Alfredo Pascual said the DTI has onboarded 300,321 MSMEs nationwide in e-commerce between January 2023 and March 2024.
https://www.philstar.com/business/2024/07/15/2370142/dti-onboards-300k-msmes
Resurgence of private construction seen next year [The Philippine Star, July 14, 2024]
Private sector investments in the construction sector may return to pre-pandemic level by next year as inflation and interest rates ease, according to the National Economic and Development Authority (NEDA).
https://www.philstar.com/business/2024/07/14/2369964/resurgence-private-construction-seen-next-year
Philippines will be Taylor Swift-ready by 2028, CIAC exec says [Manila Bulletin, July 12, 2024]
The Clark International Airport Corporation (CIAC) is now on the process of receiving proposals for the construction of an entertainment and event center that may encourage pop icon Taylor Swift to consider Philippines in her next round of world tour.
https://mb.com.ph/2024/7/12/philippines-is-taylor-swift-ready-by-2028-ciac-exec-says
PEZA signs registration contract for new Cebu IT Park [Philippine Daily Inquirer, July 11, 2024]
In a statement, the PEZA said the registration contract designating the Midland Development Corporation as the developer and operator of the Taft East Gate IT Park was signed last July 3.
https://business.inquirer.net/468100/peza-signs-registration-contract-for-new-cebu-it-park
BOI approves P9.59-billion agricultural projects in H1 of 2024 [BusinessMirror, July 11, 2024]
The investment promotion agency attached to the Department of Trade and Industry (DTI) said the P9.59 billion in investments were endorsed by the Agriculture department as Tier II agri-based projects under the 2022 Strategic Investment Priority plan pursuant to the Corporate Recovery and Tax Incentives for Enterprises Act (Create).
Razon group investing P1B to fix Bohol’s electricity supply [Philippine Daily Inquirer, July 11, 2024]
Cebu-based listed firm SPC Power Corp. divested its stake in Bohol Light Co. Inc. (BLCI) to MORE Power affiliate Primelectric Holdings Inc. for P199.5 million. The transaction, which materialized in April this year, involved the acquisition of 29.92 million common shares in BLCI for P6.67 apiece.
https://business.inquirer.net/468028/razon-group-investing-p1b-to-fix-bohols-electricity-supply
PLDT unit to open Laguna data center [The Manila Times, July 11, 2024]
VITRO Inc., a subsidiary of ePLDT, said Wednesday that its 50-megawatt data facility in Sta. Rosa Laguna is ready to start operations following the successful completion of its structure.
TPLEx extension to start construction next year — DPWH [Philippine Daily Inquirer, July 11, 2024]
The road extension project will start from TPLEx in Rosario, La Union and will terminate at San Juan, La Union. It aims to provide additional routes linking the Ilocos Region, Central Luzon and Metro Manila.
https://business.inquirer.net/468115/tplex-extension-to-start-construction-next-year-dpwh
If you wish to get a copy of the complete texts of the above issuances or to unsubscribe to the weekly tax updates, send us an email thru taxseminars@dmdcpa.com.ph.
Recent Comments