Does this train tax law reform affect your business? If yes, your sales income or receipts might not be subject to value-added tax 2018. Hence, your receipts with VAT registered is no longer necessary. Yes, receipts are very important not only to help the Bureau of Internal Revenue (BIR) in collecting taxes but also for recording purposes. In fact, this document is vital in accounting purposes in recording the sales, purchases or expenses of the company. Learn vat invoices update 2018.
According to the policy in the Philippines, failure to issue receipts or sales invoice would be castigated by the BIR. Therefore, the company must issue invoices or receipts to every customer. If you still have unused receipts or invoices for your previous registered VAT business what will you do? Can you still use those invoices in ensuing to your customers? Are there any violations or penalties? Well, to answer those questions. Let us consider the issuance of these regulations from BIR updates.
What is the BIR Updates Regarding VAT Invoices?
In the year 2018, the threshold or the number of gross receipts to qualify as Value Added Tax (VAT) registered increased. This transition has also a big impact on the VAT-registered taxpayer. If your gross sales last year were less than three million per year, under the TRAIN law you may opt to choose as a Non-VAT person. Can you still issue your old invoices/receipts even if you’re no longer subject to VAT?
On August 9, 2018, RR no. 19-2018 was issued to clarify this issue. This regulation amends the use of invoices/receipts of previously registered VAT Taxpayers who are now Non-VAT taxpayer under the Tax Reform for Acceleration and Inclusion (TRAIN law).
What are the Instructions to Qualify?
The unused invoices/receipts of the taxpayer with the approval of the BIR an issue, if their registration is updated. However, this invoices/receipts did not qualify to be claimed as input tax.
In addition, every receipt/invoice with a stamp as “NOT VALID for Claim of INPUT TAX” until the new registration non-VAT invoices is print and receive by the taxpayer or until August 31, 2018, whichever comes first.
When is the Effectivity of this Tax Updates?
Upon the receipt of a newly printed registered non-VAT invoices, the taxpayer shall submit a new inventory list of all unused previously stamped invoices/receipts. Compliance with these rules and regulations regarding vat invoices update will help to avoid cancellation of business registration and business closure.