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 are no longer necessary. Yes, receipts are significant to help the Bureau of Internal Revenue (BIR) collect taxes and recording purposes. This document is vital for accounting purposes in recording the sales, purchases, or expenses of the company.
According to the policy in the Philippines, failure to issue receipts or sales invoices would be denounced by the BIR. Therefore, the company must give 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 are the BIR Updates Regarding VAT Invoices?
In 2018, the threshold or the number of gross receipts to qualify as Value Added Tax (VAT) registered increased. This transition also has a significant impact on the VAT-registered taxpayer. If your gross sales last year were less than three million per year, you may opt to choose as a Non-VAT person under the TRAIN law. 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 taxpayers under the Tax Reform for Acceleration and Inclusion (TRAIN law).
What are the Instructions to Qualify?
You can use unused invoices/receipts of the taxpayer if the registration is still updated. However, these 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 are print and receive by the taxpayer or until August 31, 2018, whichever comes first.
When is the Effectivity of these Tax Updates?
Upon receiving 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 updates will help avoid business registration and business closure.
Learn More:
- How to Get TIN Online and To Verify TIN
- Corporate Income Tax 2021- CREATE LAW
- How to Reduce Taxes Legally 2021
- How to Register as BMBE 2021
Conclusion
So, if you’re a business owner who hasn’t been keeping up with the latest train tax law reform news and how it affects your company, now is the time to start. The good news is that this change could mean big savings for your business – all you need to do is prove that your sales income or receipts are no longer subject to value-added tax (VAT). Keep in mind that receipts are still an important document for BIR recording purposes, so make sure to keep them safe and handy! Are you ready to take advantage of this new train tax law reform?
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