1. Bookkeeping, Invoicing and Registration Requirements
Presented by:
ROMANO E. APURA, CPA
Revenue Officer
Revenue Region 19-Davao City

2. Check your compliance 1. On registration w/ the BIR.
2. On issuance of authorized ORs/INVOICES
3. On keeping and maintaining of Books of Accounts.
4. On withholding & remittance of w/holding taxes, if
applicable.
5. On filing of required tax returns and payment of
taxes due thereon.
6. On submission of required information & returns to
the BIR.

3. ON REGISTRATION REQUIREMENTS. R. A. 8424. Section 236 of NIRC
ON REGISTRATION REQUIREMENTS R.A Section 236 of NIRC RR dated Aug. 15, 2008

4. Process Flow for Registration
Primary Stage Second Stage
Persons who may secure TIN
Accomplish Registration Form
Apply for TIN
TIN Application Form
Registration Form
Documentary Requirements
Documentary Requirements
Submit to TSS
Submit to appropriate RDO
Complete?
Reject Application
Issue COR
Issue TIN

5. Second Stage of Primary Registration
Except for employees and facilities, it is the stage where the registrants are required to:
1. pay registration fee, if applicable;
2. secure Certificate of Registration;
3. get “Ask for Receipt” notice, if applicable;
4. attend the taxpayer’s initial briefing to be conducted by the BIR

6. Who are required to proceed to the second stage of the registration process?
a. Employees b. Self-employed individuals, professionals, estates and trusts, their branches or facilities c. Corporations, partnerships, cooperatives, associations, their branches or facilities d. GAIs, GOCCs, LGUs, their branches or facilities

7. When to Proceed the Second Stage
TAXPAYER
TIME FRAME
EMPLOYEES
Within 10 days from date of employment
Self-Employed Individuals, Professionals, Estates and Trusts, their branches
within thirty (30) working days from the day the corresponding Mayor’s Permit/PTR is issued to the taxpayer
Corporations (Taxable or Non-taxable)
before payment of any tax due
Partnerships, Associations, Cooperatives, GAIs and Instrumentalities
before or upon filing of any applicable tax return, statement or declaration

8. Where to File Registration Form
Registration Form shall be filed with the same RDO where TIN was obtained.
If individual applies for business and principal place of business is under the jurisdiction of an RDO different from the RDO that issued his TIN, said TIN shall be transferred to the new RDO.

9. Annual Registration Fee
An annual Registration Fee (RF) in the amount of P for every separate or distinct establishment or place of business shall be paid upon registration and every year thereafter on or before January 31 by every person subject to any internal revenue tax.

10. Exempt from Payment of Annual Registration Fee
1. Cooperatives duly registered with the CDA; 2. Individuals earning purely compensation income whether locally or abroad; 3. Overseas workers; 4. GAIs, in the discharge of governmental functions; 5. Marginal Income Earners; 6. LGUs;

11. Annual Registration Fee
7. Tax exempt persons enumerated under Section 30 of the Code, as amended; 8. Non-stock/non-profit organizations not engaged in business; 9. Persons subject to tax under one-time transactions; and 10. Facility/ies where no sales transaction occur.

12. Where to pay the Registration Fee
To an Authorized Agent Bank (AAB) located with the RDO, or to the Revenue Collection Officer (RCO), or duly authorized Treasurer of the city or municipality where each place of business or branch is registered, subject to the EFPS rules and regulations.

13. Rules on Registration of Tax Type
WHERE TO REGISTER
Income Tax
Head Office (HO) Only
VAT
HO Only
Percentage Tax
HO only or with each branch at the option of the taxpayer
Withholding Tax
Documentary Stamp Tax
Excise Tax
Registration Fee
In the Head Office and in all branches/facilities

14. UPDATE REGISTRATION DATA
Accomplish Form 1905 and submit
to your home RDO for:
Change of registered address
Change of registered activity
Change of tax types (cancellation or addition)
Additional personal exemption

15. Venue for TIN Application
TAXPAYER
WHERE TO SECURE TIN
Individual/Non-individual
RDO having juridiction of the HO or branch
For Roving Stores, Mobile Store Operators, Privilege Store Owners and the like
RDO having jurisdiction over the place of residence of seller
For Employees
place of office of the employer where such employee is expected to report for work
For Employees of Employers under TAMP
employers shall be responsible for securing TIN through the e-TIN/e-Reg facility.

16. Venue for TIN Application
TAXPAYER
WHERE TO SECURE TIN
Employees with Multiple Employers
RDO having jurisdiction over his principal/main employer.
Estate
residence of the decedent
Donation
Residence of the donor
Sale of Real Property
RDO having jurisdiction over the real property
Sale of shares of stock
address of the seller for shares of stock not traded in the stock exchange. For listed shares, place where the Local stock Exchange is located.
Other Applicants (EO 98)
residence of the applicant

17. Your Unique Identifier: TIN
Only one TIN for life
Multiple TIN is punishable by law.
Professionals may electronically secure TIN through e-REG system

18. REGISTRATION OF BRANCH
Taxpayers are also required to register and pay the corresponding Registration Fee for each separate or distinct establishment.

19. Your Usual Tax Types Registration Fee (RF) Income Tax Business Tax
VAT – 12% if gross annual fees exceed 1.5M or if opted to register as VAT Taxpayer
Percentage tax – 3% on the gross, if gross annual income is below 1.5M

20. Your Usual Tax Types Withholding Taxes
- withholding tax on compensation income paid
- expanded withholding tax on income
payments made

21. BOOKKEEPING REQUIREMENTS
Sections 232 to 235 of the 1997 Tax Code

22. Who are required to keep books of accounts?
All corporations, companies, partnerships or persons required by law to pay internal revenue taxes.

23. Books of Accounts to be kept
Simplified set of books – if quarterly sales, earnings or receipts, or output do not exceed P50,000.
Audited Financial Statements – if gross quarterly sales, earnings or receipts or output exceeds P150,000.

24. Books of Accounts (RR No. V-1)
Journal (Sales Journal, Purchase Journal, Cash Book);
Ledger;
Subsidiary books;
Electronic Records (RR ) – if a taxpayer maintains electronic and hard copy formats, the TP shall make the records available to the Bureau in electronic format upon request of the commissioner or its authorized representative.

25. Registration of Manual Books of Accounts (RMC 82-2008)
Registration Procedures:
Manual books of accounts previously registered
whose pages are not yet fully exhausted can still be used in the succeeding years without the need of re-registering or re-stamping
the portions pertaining to a particular year should be properly labelled or marked by the taxpayer.

26. Registration of Manual Books of Accounts (RMC 82-2008) cont...
The registration of a new set of manual books of accounts shall only be at the time when the pages of the previously registered books have all been already exhausted.
Not necessary to register new set of manual books of accounts each and every year.

27. Registration of Manual Books of Accounts (RMC 82-2008) cont...
Other Deadlines
Jan. 30 of the ff year (RMO ) applies only to computerized books of accounts and not to manual books of accounts
The “15 days after the end of the calendar year” (RMC 13-82) refers to loose-leaf books of accounts and not to manual books of accounts

28. Registration of Manual Books of Accounts (RMC 82-2008) cont...
Newly registered taxpayers shall present the Manual Books of Accounts before use to the RDOs where the place of business is located or concerned office under the Large Taxpayer Service for approval and registration.

29. Registration of Manual Books of Accounts (RMC 82-2008) cont...
Subsidiary manual books of accounts to be used by taxpayers, in addition to the manual books of accounts, shall be registered before use, following the same rules.
TSS personnel has no authority to examine whether the previously registered books are complete and/or updated prior to its approval.

30. On CAS – (RMO )
The requirement of binding and stamping of computerized books of accounts and/or receipts and invoices are no longer necessary, provided that:
1. Soft copy of the CAS in text file format
shall be made available in the ff mode:
In CD-ROM (read only) properly labelled
Electronically archived information
In case the TP has no capability to submit in CD-ROM form, procedures under the manual system shall prevail.

31. On CAS – (RMO )
A duly notarized certification in the form of an affidavit ascertaining/attesting the accuracy of the ff shall be submitted to the RDO within 30 days from the close of the taxable year:
The number of receipts and invoice used during the year; and
Soft copy in CD-ROM duly stamped “registered” and signed by authorized official or the archived books of accounts.

32. On Loose Leaf - (RMC 13-82)
TP should be required to bind the loose leaf forms within 15 days after the end of the taxable year.

33. INVOICING REQUIREMENTS

34. Invoicing Requirements
Issue sequentially Official Receipt (OR) for fees received
Sales Invoice for sale of goods (medicines).
Each OR issued shall indicate the name and address of the client, date of transaction, nature of service rendered and the amount.

35. Invoicing Requirements
The OR shall be accomplished at least in duplicate
The duplicate retained & preserved in place of business for 3 years from close of taxable year.

36. Sample of Commercial Invoice – A Non-VAT Official Receipt
SAMPLE ONLY

37. Proper Invoicing and Receipting of Output Tax
Revenue Regulations
Reiterates Sec. 237 of the Tax Code that VAT-registered taxpayers should separately bill the VAT.
The amount shall be shown as a separate item in the invoice or receipt 37 37

38. Proper Invoicing and Receipting of Output Tax
Ex: If the amount charged is P560.00, it shall be presented in the following manner:
Sales (P560.00/112%) P
Add12% VAT (12% of P500.00)
Total Amount charged P 38 38

39. Proper Invoicing and Receipting of Output Tax
SAMPLE ONLY 39 39

40. Proper Invoicing and Receipting of Output Tax
SAMPLE ONLY
Particulars
Service Fee
P1,124.10
12% VAT
134.90
Total
P1,259.00
VAT should be
billed separately 40 40

41. Proper Invoicing and Receipting of Output Tax
Penalty
for each act or omission, be punished by a fine of not less than P1, but not more than P50, and
suffer imprisonment of not less than two (2) years but not more than four (4) years. 41 41

42. The importance of Asking for Receipts
To support input tax claims
Will facilitate audit trail
To ascertain that sales transactions are properly recorded
Corresponding taxes are paid
To support business purchases/expenses 42 42

43. INVOICING REQUIREMENTS (Sec. 237)
All persons subject to internal revenue tax shall:
For each sale of P25 or more;
Issue duly registered receipts or sales or commercial invoices;
Prepared at least in duplicate.

44. Invoicing Requirements (Sec. 237)
Required information:
Date of transaction
Quantity
Unit Cost
Description of merchandise or nature of the service
TIN of purchaser if VAT-registered

45. Invoicing Requirements (Sec. 237)
Required information:
Name, business style and address of the purchaser shall be indicated in the ff cases –
Amount exceeds P100;
Seller and buyer are VAT-subject persons;
Receipt covers rentals, commission, compensation or fees.

46. Invoicing Requirements (Sec. 237)
Disposition of the receipts/invoices
Original -> purchaser
Duplicate -> retained by issuer
Copies of receipts/invoices should be preserved in the place of business for a period of 3 years, if engaged in business.

47. Invoicing Requirements (Sec. 237)
(continued)
BIR Printed Receipts (RMO )
All registered taxpayers who are required by law under Section 237 of the Tax Code to issue duly registered receipts or sales and/or commercial invoices may, at their option use the BPR provided these taxpayers have -

48. Invoicing Requirements (Sec. 237) BIR Printed Receipts (BPR)
Business transactions that will require the use of not more than one booklet of 50 pages in one taxable period (of no less than 12 months).
However, the use of BPR is mandatory for taxpayers who were found during the TCVD to have committed for the first time any of the following violations:

49. Invoicing Requirements (Sec. 237)
BIR Printed Receipts
Failure to register with BIR under Sec. 236 of the Tax Code but has commenced business and failure to issue duly registered receipts or invoices;
Registered with BIR but without required receipts or invoices;

50. Invoicing Requirements (Sec. 237)
BIR Printed Receipts
3. Possession of any of the following:
a. Unregistered and/or fake receipts/
invoices;
b. Multiple or double sets of receipts/
c. Unregistered cash register
machines, POS or similar devices.

51. Printing of Receipts (Sec. 238)
Information required:
Serial number (separate series for HO and branch
Name
Business style
TIN and Branch Code (if applicable)
Business Address (exact) of user (HO or branch)

52. Printing of Receipts (RMO 28-2002))
Centralized issuance of ATPs –
At the RDO of the HO
Separate application and permit for each establishment to be filed at RDO of the HO
Signed by official of the HO
Register the receipts with RDO of the user (HO or branch).

53. Printing of Receipts (RMO 28-2002))
Users of registered Computerized Accounting Systems (CAS) – are also be required to secure ATP for manual receipts and invoices to be issued in case of system unavailability or if the CAS does not generate pre-numbered receipts/invoices.

54. BOOKKEEPING REQUIREMENTS

55. BOOKKEEPING REQUIREMENTS
Cash or accrual
Preserved within the prescriptive period of 3yrs
Gross receipts exceeding P150,000 in any given quarter must be audited by a CPA

56. BOOKKEEPING REQUIREMENTS
Transactions for the day must be entered in books on or before 12nn the following day. Balances transferred to Ledger day following end of month
It’s not required to register new set of books every year; only before the pages of current book is almost used up.

57. Tax Compliance Verification Drive
(Tax mapping)
Original Certificate of Registration, Registration Fee and the Ask for Receipt Notice must be conspicuously displayed in the physician’s place of business and/or clinic

58. Posting Requirement
Display “Ask For Receipt Poster” which shall be issued upon release of COR

59. Posting Requirement:
Display Certificate of Registration (COR) at the establishment (BIR Form 1556)

60. Posting Requirement (RR 4-2000)
At the place of business
In an area conspicuous to the public
At all times
Penalty: P1,000 and/or imprisonment of not more than 6 months.

61. VIOLATIONS CHECKLIST On Registration Requirements Failure to Register
If located in the
Cities
P20,000
1st Class Municipality
10,000
2nd Class Municipality
5,000
3rd Class Municipality
2,000
Penalties provided are inclusive of all other violations
Failure to Pay Annual Registration Fee
P1,000
Failure to Display Annual Registration Fee
No Original Certificate of Registration Displayed
Failure to display the poster “Ask for Receipt” 61 61

62. Not qualified for compromise
VIOLATIONS CHECKLIST
On Invoicing Requirements
1st Offense
2nd Offense
Failure to issue receipts/invoices
P10,000
P20,000
Refusal to issue receipts/invoices
25,000
50,000
Duplicate Copy of the receipts/invoices is blank but the accomplished original is detached
20,000
Use of unregistered receipts/invoices
Incomplete information in the receipts/invoices
5,000
10,000
If the information missing is the correct amount of the transaction
Possession or use of multiple or double receipts or invoices
Not qualified for compromise 62 62

63. VIOLATIONS CHECKLIST 63 63

64. Thank you!