Old receipts, invoices valid only up to Aug. 30 – BIR

MANILA, Philippines - The Bureau of Internal Revenue (BIR) has extended the deadline for private businesses to issue new receipts and invoices.

In a text message to The STAR, BIR Commissioner Kim Henares said yesterday she has issued Memorandum Circular 44-2013, extending the validity of old BIR receipts from June 30 to Aug. 30 this year.

Henares said the BIR extended for two months the deadline for businesses to issue a new set of receipts or invoices to ensure that customers get ORs for their business transactions.

Under the Tax Code, businesses are required to issue an invoice for each sale of goods and an OR for services rendered valued at P25 or more.

Henares said the BIR would no longer extend the deadline after Aug. 30.

“We have given them more than enough time to comply with the new requirement,” she said.

“We extended it not because of the businessmen who are complaining. It’s for the customers who need ORs for financial transactions or services rendered,” Henares added.

The BIR issued the new regulation in a bid to curb tax evasion and smuggling.

After the lapse of the deadline, all existing unused/unissued receipts or invoices must be surrendered to the bureau for destruction.

The Philippine Chamber of Commerce and Industry had earlier asked the Department of Finance and BIR to extend the validity of unused invoices and receipts to Dec. 31 this year.

‘New rule unfair’

Meanwhile, Bayan Muna Rep. Teddy Casiño said yesterday the BIR’s requirement for companies to replace their receipts is unfair for start-up firms.

He said a company that opened late last year would have been required by the BIR to order 10 booklets each of invoices, sales receipts and delivery receipts from a BIR-accredited printer.

“Imagine, this particular company has yet to use up the 10 booklets the BIR ordered them to procure last year and now they are being ordered to procure new ones,” he said.

“It’s unfair for start-up firms and even for those that have been operating for years. They have spent precious money to have their invoices and receipts printed. At least, they should be allowed to use up all these receipts and invoices,” he added.

Under the BIR rule, new receipts with security marks and expiration will be used starting Sept. 1, violators will pay a fine of as much as P50,000.

Henares said her agency was prompted to adopt the new rule after discovering that many businesses registered with the BIR are not actually engaged in business and are just selling their receipts and invoices to smugglers.

She said a lot of these documents that were printed in the ‘70s, which did not have expiration date, are still being used.

There were also complaints that some BIR personnel are engaged in the printing of receipts or have favored printers, she said.

Casiño said law-abiding entrepreneurs are in effect being punished for irregularities committed by BIR employees and businessmen in cahoots with smugglers.

“The BIR knows who are these wayward personnel and businessmen. They should go after them and not punish law-abiding business entities,” he said. – With Jess Diaz