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How to issue official receipts: Be sure to keep your Authority to Print

How to issue official receipts: Be sure to keep your Authority to Print

How do you issue official receipts in the Philippines?

I wish BIR had less glossy ads and more substantive efforts on making things easier for taxpayers who actually want to pay their taxes.
I wish BIR had less glossy ads and more substantive efforts on making things easier for taxpayers who actually want to pay their taxes.

After you register your business with the Bureau of Internal Revenue (BIR) and receive your Certificate of Registration (COR) you’re not yet done with the paper work.

To issue official receipts you will need to apply with the BIR for an Authority to Print (ATP).

I don’t know why the BIR just doesn’t issue an ATP automatically when they issue a COR to a business. Everything the taxpayer needs to start operating should be accomplished upon turnover of the COR instead of lengthening the process further.

Anyway, after the ATP is issued you’ll need to take it to a BIR accredited printer (or you can ask around the BIR Revenue District Office, they usually have a preferred printer which they can point you to) to actually print the receipts.

Once you have your receipts, be sure to keep your ATP. The ATP is not a one use item. You’re supposed to keep the original and bring out that same original every time you need to print a new batch of receipts.

I emphasize keeping the ATP as I didn’t know this and promptly lost the ATP for my business after printing my first batch of receipts. So I had to go back to the BIR and get a new ATP, more paper work.

There’s very little leeway for printing customized receipts. You’re pretty much stuck with the standard (ugly, IMHO) layout for the official receipts.

The above is an outline for small businesses. Larger business with cash registers and other POS devices are issued a different authority whereby the receipt issued by the register may already be considered an official receipt.

If you go to most large stores though (eg. SM or Puregold) and request for an official receipt they will take your machine printed receipt and replace it with a handwritten sales invoice.

Sales invoices are the documents which the BIR now checks to determine whether an expense can properly be classified as deductible.

Review: One Asia Inc.

Review: One Asia Inc.

At the end of the year Philippine companies are required to file a General Information Sheet (GIS) with the Securities and Exchange Commission (SEC) and an Audited Finanical Statement with the SEC and the Bureau of Internal Revenue (BIR).

I’ve completed and filed GISs before but I’ve never had to come up with an AFS. Moreover as I am not an accountant I wouldn’t even know where to begin. So I hired One Asia Inc. to come up with the Alcoves AFS for 2014. Overall my review would be satisfied and I would consider contracting their services again. However I wasn’t satisfied sufficiently that it would be a sure thing that I would get One Asia Inc. for next year’s AFS.

Accounting - is there anything more dreary?
Accounting – is there anything more dreary?

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How to Compute VAT

How to Compute VAT

VAT or value added tax (GST in other countries) in the Philippines is 12% of the price of the good or service.

So you’d think a purchase worth PHP100 would have a VAT amount of PHP12.

Nope, you’re wrong. The correct VAT amount on a sale of PHP100 would be PHP10.71. Find out how to compute the proper VAT amount after the fold.

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