KEEPING OF BOOKS OF ACCOUNTS
All corporations, companies, partnerships, or persons required by law to pay internal revenue taxes shall keep a journal and a ledger or their equivalents.
1. those whose gross quarterly sales earnings receipts or output do not exceed P50,000.00, shall keep and use a simplified set of bookkeeping records duly authorized by the Secretary of Finance wherein all transaction and results of operations are shown.
PRESERVATION OF BOOKS OF ACCOUNTS
All books of accounts, including the subsidiary books and other accounting records of corporations, partnerships or persons shall be preserved by them within 3 years (except in case of a false or fraudulent return) from the last entry in each book and for which period the Commissioner is authorized to make an assessment.
The said books and records shall be subject to examination and inspection by internal revenue officers made only once in a taxable year, except in the following cases:
1. fraud, irregularity or mistakes as determined by the commissioner;
2. the taxpayer requests reinvestigation;
3. verification or compliance with the withholding tax laws and regulations and
4. in the exercise of the commissioner’s power to obtain information from other persons, in which case, another or separate examination and inspection may be made.
REGISTRATION REQUIREMENTS
Every person subject to any internal revenue tax shall register once with the appropriate Revenue District Officer:
1. within 10 days from date of employment
2. on or before the commencement of business
3. before payment of any tax due
4. upon filing of a return, statement or declaration as required in the tax code.
CONTENTS OF REGISTRATION
The taxpayer’s name, style, place of residence, business, and such other information as may be required by the commissioner of internal revenue in the form prescribed therefor.
REGISTRATION FEE, AMOUNT AND WHEN PAID
An annual registration fee in the amount of P500.00 for every separate or distinct establishment or place of business, including facility types where sales transaction occur shall be paid, upon registration and every year thereafter on or before the last day of January.
EXCEPTIONS: who are not required to pay:
a. cooperatives
b. individuals earning purely compensation income, whether locally or abroad, and
c. overseas workers
TO WHOM PAYMENT MADE
a. an authorized agent bank located within the revenue district office;
b. Revenue collection officer. Or
c. duly authorized treasurer of the City or municipality where each place of business or branch is located.
REGISTRANT SHOULD UPDATE REGISTRATION INFORMATION
The registrant shall, whenever applicable, update his registration information with the Revenue District Office where he is registered, specifying therein any change in tax type and other taxpayer details.
CANCELLATION OF REGISTRATION
The registration of any person who ceases to be liable to a tax type shall be cancelled, upon filing with the Revenue District Office where he is registered, an application for registration information update in a form prescribed therefor.
WHERE T.I.N REQUIRED TO BE SUPPLIED
Any person required under the tax code to make, render or file a return, statement or other document, shall be supplied with or assigned a Taxpayer Identification Number (TIN), which he shall indicate in such return, statement or document filed with the BIR for his proper identification for tax purposes.
EXAMPLES OF DOCUMENTS WHICH REQUIRES INDICATION OF A TIN. (IMPT!!!)
a. sugar quedans, refined sugar release order or similar instruments;
b. domestic bills of lading
c. documents to be registered with the Register of Deeds or Assessor’s Office;
d. registration certificate of transportation equipment by land, sea or air;
e. documents to be registered with the SEC;
f. building construction permits;
g. application for loan with banks, financial institutions or other financial intermediaries;
h. application for mayor’s permit
i. application for business license with the DTI
j. such other documents which may thereafter be required under rules and regulations to be promulgated by the Secretary of Finance, upon recommendation of the Commission of Internal Revenue.
ISSUANCE OF RECEIPTS, SALES INVOICE OR COMMERCIAL INVOICE
All persons subject to an internal revenue tax shall, for each sale or transfer of merchandise or for services rendered valued at 25.00 or more, issue duly registered receipts, sales invoice or commercial invoice, prepared at least in duplicate, showing the date of transaction, quantity under cost and description of merchandise or nature of service.
In lieu of sale invoices or receipts, the BIR permits the use of cash register and point-of sale (POS) machines. In this regard, the BIR, has set rules, and the permit shall be issued only to proprietors, owners or operators of any of the following lines of business and other similar establishments:
1. supermarkets;
2. department stores
3. drugstores
4. bookstores
5. groceries
6. bakeries
7. restaurants, bars, beer gardens, refreshment parlors and other eating places
8. record bars and music stores
9. video shops selling and leasing out cinematographic films
10. garages and other parking spaces
11. gasoline stations
12. hotels, motels, lodging houses and the like
13. token exchange stations
14. recreational and amusement centers.
The Commissioner of Internal Revenue may, in meritorious cases, qualify other lines of business to use cash register and POS machines considering modern business practices.
WHERE NAME, BUSINESS STYLE, OR ADDRESS OF PURCHASER, CUSTOMER OR CLIENT IS REQUIRED TO BE SHOWN ON THE RECEIPT OR INVOICE
In case of sales receipts or transfers in the amount of P100.00 or more, regardless of amount where the sale or transfer is made by persons subject to the value added tax to other persons also subject to value added tax, or where the receipt is issued to cover payment made as rentals, commissions, compensations or fees.
PRINTING OF RECEIPTS, SALES INVOICE OR COMMERCIAL INVOICE IMPT!!!!!
All persons who are engaged in business shall secure from the BIR an authority to print receipts, sales invoice or commercial invoice before a printer can print the same.
No authority to print receipts, sales invoice or commercial invoice shall be granted unless the receipts or invoices to be printed are serially numbered and shall show, among other things, the name, business style, taxpayer identification number and business address of the person or entity to use the same and such other information that may be required by rules and regulations to be promulgated by the Secretary of Finance, upon recommendation of the commissioner.
All persons who print receipts, sales invoice or commercial invoice shall maintain a logbook/ register of taxpayers who availed of their printing services. The logbook/ register shall contain the following information:
a. names and TIN of the persons or entities for whom the receipts, sale invoice or commercial invoice were printed, and
b. number of booklets, number of sets per booklet, number of copies per set and the serial numbers of the receipts or invoices in each booklet.
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