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Tax Updates

RMC 52-2013: Clarifying the Validity of Unused/Unissued Principal and Supplementary Receipts/Invoices Printed Prior to January 18, 2013

On August 13, 2013, the Bureau of Internal Revenue (BIR) issued Revenue Memorandum Circular (RMC) No. 52-2013,  for another clarification on the validity of unused/unissued principal and supplementary receipts/invoices printed prior to January 18, 2013 and other matters.  Among the matters clarified are:

  • Principal and supplementary receipts/invoices with Authority to Print (ATP) prior to January 1, 2011 shall no longer be valid as of August 31, 2013.
  • No deduction from gross income shall be allowed and input tax may not be claimed for such receipts.
  • Principal and supplementary receipts/invoices with ATP from January 1, 2011 to January 17, 2013 may be used until October 31, 2013, provided new APT was issued or or before August 30, 2013, the term “valid until October 31, 2013 only” shall be stamped prominently.
  • Application for new ATP filed after April 30, 2013 is deemed to have been filed out of time and subject to a penalty of One Thousand pesos (Php1,000).
  • A certified true copy of the ATP shall be included as attachment in any application for tax clearance.  Non-submission of ATP shall be a ground for non-issuance of tax clearance for whatever purposes.

Recall that the BIR issued RMC 44-2013: Extension of Validity of Unused/Unissued Principal and Supplementary Receipts and Invoices last June 2013.  Click Here to read.

Below is the full text of the Revenue Memorandum Circular No. 52-2013:


This Circular is issued to clarify the validity of Unused/Unissued Principal and Supplementary Receipts/Invoices Printed Prior to January 18, 2013 and other Matters.

CLARIFICATION

I. Receipts with Authority to Print prior to January 1, 2011

All Principal and Supplementary Receipts/Invoices with Authority to Print (ATP) dated prior to January 1, 2011 shall no longer be valid as of August 31, 2013 pursuant to Revenue Regulations (RR) No. 018-12 and Revenue Memorandum Circular No. 44-2013.

Issuance of said receipts/invoices starting August 31, 2013 constitutes a violation of Section 264 of the Tax Code of 1997 (Tax Code), as amended, and is considered as if no receipt/invoice was issued. Consequently, no deduction from gross income shall be allowed using these receipts/invoices as these are not valid proof of substantiation. Furthermore, in case of VAT-registered persons, no input tax may be claimed using these receipts/invoices.

II. Receipts with Authority to Print dated to January 1, 2011 to January 17, 2013

All Principal and Supplementary Receipts/Invoices with ATP dated January 1, 2011 to January 17, 2013 may be used until October 31, 2013 provided that new ATP was issued on or before August 30, 2013. However, application for new ATP filed after April 30, 2013 is deemed to have been filed out of time and subject to a penalty of One Thousand pesos (Php1000) pursuant to Section 264 of the Tax Code, as amended.

In all principal and supplementary receipts/invoice which can still be used until October 31, 2013, the term “valid until October 31, 2013 only” shall be stamped prominently on the face of the receipts or invoices (original and duplicate copies). Otherwise, no deduction and input tax may be claimed using these receipts/invoices.

III. Tax Compliance Verification Drive

All Revenue District Officers (RDO) and Chief-Large Taxpayers District Offices (Chief) are hereby instructed to ensure compliance with this Circular and to match the taxpayers’ database against the ATPs issued as of January 18, 2013.

A report on the compliance and matching of Taxpayers’ database as against the ATPs issued shall be submitted to the Regional Director (RD)/Assistant Commissioner-Large Taxpayers (ACIR-LTS) Service. Pursuant to the report and upon recommendation of the RDO/Chief, a mission order shall be issued by the RD/ACIRLTS.

Cases due for verification on tax compliance noted by RDO/Chief in violation of this Circular shall be covered by existing procedures on Tax Compliance Verification Drive (TCVD).

IV. Tax Clearance

To fully implement the requirements under RR No. 18-12, a certified true copy of the ATP shall be included as attachment in any application for tax clearance. Accordingly, non-submission of ATP shall be a ground for non-issuance of tax clearance for whatever purposes.

All concerned are hereby enjoined to be guided accordingly and give this Circular as wide a publicity as possible.
This Circular shall take effect immediately.

(Original Signed)
KIM S. JACINTO-HENARES
Commissioner of Internal Revenue

Download a copy of the Revenue Memorandum Circular No. 52-2013, Here!

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About leecpa

Orlando Calundan is a Certified Public Accountant. He has exposures in audit of financial statements of entities in various industries such as real estate, food (quick service restaurants), manufacturing, service organizations and BPOs, automotive, holding/investment companies and more. He also has exposure on internal audit engagements. http://calundan.co

Discussion

19 thoughts on “RMC 52-2013: Clarifying the Validity of Unused/Unissued Principal and Supplementary Receipts/Invoices Printed Prior to January 18, 2013

  1. “valid until October 31, 2013 only” shall be stamped prominently on the face of the receipts or invoices (original and duplicate copies). Otherwise, no deduction and input tax may be claimed using these receipts/invoices.
    Question? Who will stamp the word “valid until October 31, 2013 only” .. is it the BIR or the company?

    Posted by mayann | August 16, 2013, 7:48 am
  2. The Company issuing the receipts/invoices Mayann.

    Posted by leecpa | August 16, 2013, 9:30 am
  3. Thank you for this update.

    Posted by Boie Inc | August 23, 2013, 8:20 am
  4. “provided that new ATP was issued on or before August 30, 2013”. What if the ATP has not been released yet. would the received copy of 1906 suffice?

    Posted by mitz | August 30, 2013, 12:35 am
  5. Hi, what if no ATP was still issued? and it was due to the BIR?

    Posted by kathy | August 31, 2013, 1:48 am
  6. Hi Kathy,

    Recall that the application for new ATP for those with ATP issued before January 18, 2013 was only up to April 30, 2013. If you file for renewal before that date and BIR still havent issued before August 30, 2013, maybe you should discuss that with your RDO to clarify.

    Posted by leecpa | August 31, 2013, 4:20 am
  7. Hi, Has there been a clear regulation on when to issue a collection receipt vs. an official receipt? I am a bit confuse on why some companies insists on receiving a collection receipt as against an O.R….

    Posted by Bill | September 3, 2013, 8:45 am
    • I believe collection receipt and official receipts are the same. What is usually distinguished is invoice vs. receipts since invoice is usually the basis for the taxation on sale of goods while receipt is the basis for taxation on sale of services. But I don’t really see the distinction of collection receipt with official receipt.

      Posted by leecpa | September 3, 2013, 9:53 am
      • Hi Sir,

        I think Official receipt substantiates purchase of services and is a principal receipt. So for purchases of services that will be claimed as tax deductible item, OR will substantiate claimed expense. On the other hand, the form collection receipt, is enumerated by rr 18-2012 to be falling under supplementary receipts, which can be used as a document evidencing payment and as a support to principal invoices. I think some companies insist of being issued with collection receipt rather than OR because there are some instances that the BIR auditors say that if you hold an OR that means you purchase services and therefore should have withheld 2% instead of 1%. BIR sometimes is fond of adapting the higher percentage when assessing esp. when they use documents/forms as their evidence of transaction/purchase.

        rr 18-2012 also states that “Supplementary receipts/invoices, for purposes of Value-Added Tax, are not valid proof to support the claim of Input Taxes by buyers of goods and/or services.” Though depending on the examiner and since collection receipt is enumerated under supplementary receipt, phrase above can be used as ground to disqualify claims of input taxes.

        Sir LEECPA, we are in this line of thinking in our group when we discussed this BIR regulation, as an experienced tax practitioner, do you think we are over-interpreting this regulation?

        Thank you.

        Posted by Ron | November 13, 2013, 4:01 am
  8. so we dont have to go to our designated rdo to get our receipts stamped? meaning we can just stamp it ourselves?

    Posted by Alma | September 5, 2013, 6:13 am
    • Yes. I think the only purpose is to avoid erroneous issuance after the validity date, which is October 31, 2013. If it is required that the RDO shall do the stamping, it should have been clearly provided in the Circular, which is, clearly not the case.

      Also, imagine if that will be the directive, how many ORs are there in the entire country? Note that every original and duplicate should have such stamp. If this would be assigned to the BIR, then the validity period will already lapse but still they’re not yet done stamping! 😀

      Posted by leecpa | September 5, 2013, 6:22 am
  9. “All Principal and Supplementary Receipts/Invoices with ATP dated January 1, 2011 to January 17, 2013 may be used until October 31, 2013 provided that new ATP was issued on or before August 30, 2013”

    Question:
    If I would be the receiver of the SI, how would I know if the issuing party has already new ATP?

    Posted by Mark | September 10, 2013, 11:02 am
  10. Hi Sir Is their any penalty if after August 30, 2013 old receipts and invoices are still in our possession eventhough were not using it because were using POS, were just using the invoices/receipts for backup purposes in case of computer shutdown? Our prior receipts and invoices are dated year 2009. In BIR Rosales they fined us 10,000 for the reason of possession of old receipts and invoices. Is there any memorandum for the amount of penalty? we encountered it in some branch but they only fined us 1,000 for late destruction?

    Posted by Joana Arellano | October 16, 2013, 1:40 am
  11. There is no widely distributed guidance on penalties regarding matter Ms. Joana, as far as I am aware. I know of some who contested the P10,000 penalty and was able to reduce it to P1,000. The reason they brought up was the basis for the assessment of such amount, if there are any guidelines.

    Posted by leecpa | October 16, 2013, 3:34 am
  12. helo sir..yesterday i went to bir to compute the penalty for late late atp..they computed 20,ooo. for late atp..is this right computation? and i read the bir RMC no.52-2013 , says issuance of said receits starting august 31, 2013 constitutes aviolation of section 264 of the tax code 0f 1997, as amended. and is considered as if no receipts was issued. but in section 264 of violations..failure to issue receipts. first offense. 10,ooo. second offense 20,000.00..fine of not less than 1,ooo but not more than 50,000…buti kung na tax mapped ka, hindi nmn..lease advise..pwede ba yan sabihin 10,ooo.khit first offense lng?

    Posted by jing | July 9, 2014, 6:07 am

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