RR No. 18-2011: Provides the penalties for violation of the requirement that Output Tax on the sale of goods and services should be separately indicated in the sales invoice or official receipt

Key points

1. Separate billing of VAT. VAT-registered taxpayers required to issue invoices or official receipts under Section 237 of the 1997 Tax Code, as amended, must bill the VAT separately. The tax amount appears as its own item in the invoice or receipt.
2. Penalty. Failure or refusal to comply is punished, upon conviction and for each act or omission, by a fine of not less than P 1,000.00 but not more than P 50,000.00. Imprisonment of not less than two (2) years but not more than four (4) years also applies.

Who is affected

• VAT-registered taxpayers required to issue sales invoices or official receipts