Summary
RMC No. 61-2003 prescribes additional information that VAT invoices and receipts must carry.
Key points
- Required phrase. VAT invoices/receipts must carry the phrase “Not to be issued for non-VAT/exempt sale of goods, properties or services. If issued, sales shall be subject to 10% VAT.” It is stamped on those already printed and printed on those still to be printed as of the effectivity of the Circular.
- Penalty for omission. Leaving out the phrase on a VAT invoice or receipt is subject to the administrative penal sanctions in the Tax Code and implementing regulations.
- Consequences of a VAT invoice for non-VAT sales. A VAT-registered person who issues a VAT invoice or receipt for a sale not subject to VAT must pay output tax computed at 1/11 of the total amount on the invoice/receipt. No input tax credits may be claimed against that output tax. The person is also liable to applicable Percentage Tax under Title V of the Tax Code.
Who is affected
- VAT-registered taxpayers
Summary by Tax Resources PH. It is not a substitute for the full text of the issuance or professional advice.
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