We recently published an article about the BIR new rules on receipts. For those who are still seeking for clarity, here are the top questions that we received from different customers and taxpayers with regard to RR 7-2024.
1. What are the specific changes introduced by BIR RR No. 7-2024 regarding receipts and invoices?
RR No. 7-2024 introduces a shift from Official Receipts to Invoices for documenting sales transactions. Businesses MUST issue invoices for sales or services valued at P500 or more, with adjustments for inflation every three years.
VAT-registered businesses MUST issue invoices regardless of the transaction amount. Official Receipts are no longer mandatory but can still be used optionally or converted to invoices following specific guidelines.
2. How do I convert my remaining Official Receipts into invoices, and is approval required from BIR?
To convert unused Official Receipts into invoices, strike through the term “Official Receipt” and replace it with “Invoice” or a similar term.
Ensure these converted documents contain all required invoice information, including a prominent serial number, seller’s registered name, TIN, business address, and breakdown of sales if applicable. No approval from BIR is needed for this conversion, but businesses must obtain new invoices with an Authority to Print (ATP) before December 31, 2024, or before using up the converted Official Receipts.
3. What information must be included in an invoice to comply with the new BIR regulations?
Invoices must include:
- Seller’s registered name, TIN, and business address.
- Statement of VAT registration status.
- Label “Invoice” clearly printed on the document.
- Date of the transaction.
- Space for buyer’s details (not mandatory for B2C transactions).
- Prominent serial number.
- Quantity, unit cost, and description of goods or services.
- Total sale amount, with VAT shown separately.
- Breakdown of sales if applicable.
- Additional information for specific transactions.
4. How does Taxumo help in complying with the new invoicing regulations?
If you need to change your official receipts into invoices (have new ones printed), you can message customercare@taxumo.com and we will ask one of our partner CPAs / processors help you out.
Also, If you are in need of an online invoicing solution – join our waitlist to get early access through this reservation link.
5. What should I do with my remaining Official Receipts, and can I still use them after the new regulation takes effect?
Businesses can continue using their remaining Official Receipts as supplementary documents until they are used up. These receipts must be stamped with “THIS DOCUMENT IS NOT VALID FOR CLAIM OF INPUT TAX” upon the regulation’s effective date. Alternatively, businesses can convert unused Official Receipts into invoices by following the conversion guidelines. These converted documents are valid for input tax claims until December 31, 2024, provided they contain all required invoice information.
6. Can you discuss more about claiming VAT?
Each invoice now should have the breakdown indicated on the side. It should include VATable sales, zero-rated sales, VAT-exempt sales, and 12% VAT. So in the picture of the invoice above, VAT cannot be claimed for that since there is no breakdown.
Also, for non-VAT sales invoices, you should print “THIS DOCUMENT IS NOT VALID FOR CLAIM OF INPUT TAX” in bold letters at the face of the invoice. For transactions under VAT-exempted, it’s a must to have the word “EXEMPT” clearly indicated on the document.
Hi,
Can you further clarify when exactly we need to get a new ATP. Can I still use up all my converted receipts well into 2025 or will I need to start with new invoices after Dec 31 2024?
Hello Jay,
You can still use your current OR until end of 2024. Just strikethrough the OFFICIAL RECEIPT and replace it by stamping SALES INVOICE on your actual OR. But, you need to submit an inventory of unused ORs to your RDO if you plan to do this. Then, come 2025, you should have a new set of Sales Invoices already. 🙂
Do Bir has a format or form to fill up for the inventory list of Unused OR? When is the deadline of submission?
Hello Leony,
Good day!
You can use our prepared template here: https://docs.google.com/document/d/1XmbUc7zbwI151r5M8Q3fFSmMKOvGoGz2i7-0DdbMP34/edit
For the deadline, some RDOs extended the deadline of submission from May 27 to July 31, 2024. You can check with your RDO if they are also extending their deadline on this. 🙂
Hello Millicent,
But, you need to submit an inventory of unused ORs to your RDO if you plan to do this.
— When is the deadline for this?
Should I submit inventory before converting these OR to to Invoice?
In what format would we submit this. Do you have sample?
Thank you!
Hello Alyssa,
Good day!
The original deadline was last May 27, but some RDOs extended the deadline until July 31, 2024. You can check with your RDO to know if they are also extending their deadline of submission.
For the sample template, you can click this link: https://docs.google.com/document/d/1XmbUc7zbwI151r5M8Q3fFSmMKOvGoGz2i7-0DdbMP34/edit 🙂
Good day, I am NON VAT, do I still need to maintain a Subsidiary Sales Journal and Subsidiary Purchase journal
Hello Goodlight,
For non-VAT, you only need to update and maintain your Cash Receipt Journal, Cash Disbursement Journal, General Ledger and General Journal. 🙂
Hello, question pls, same lang ba sa OR upon collection/receiving of payment ang issuance ng service invoice?
TIA
Hello,
Good day!
No po. Since we’re following Accrual Basis na, you should issue the sales invoice upon receiving the order of an item or service. Then you can issue an OR as a supplementary document once the item/service has been paid by the client na. 🙂
Hi, Jay!
Thank you for this. Our company provides both goods and services to some clients, so we already have Sales Invoices (for the goods we sell). Can we issue the same Sales Invoices for the services we render to the clients, or should we produce new ones?
TIA.
Hello Cha,
Good day!
Yes, you can use the same Sales Invoice for your services as well. 🙂
Do you have a date for seminar so I can register to know about the RR 7-2024
Hello Resty,
Good day!
If you are pertaining to our FREE Tax 101 sessions, you may book your slot through this link: https://calendly.com/consultnow/free-tax-101-for-smb-microbusinesses?preview_source=et_card&month=2024-06
Hope this helps! 🙂
How about Vatable company. What books should we maintain?
Hello Cris,
Good day!
The Books for VAT businesses are the following:
Cash Receipt Journal
Cash Disbursement Journal
General Ledger
General Journal
Sales Journal
Purchase Journal
Hope this helps! 🙂
Do i need to bring SPA when i represent my brother in the submission to rdo 28 of List of Invty of unused ORs to be converted to INVOICES and Supplementary Receipts?
Since in Iloilo RDO 74, they did not ask for SPA or SEC Cert anymore.
Thank you.
Hello Emily,
Good day!
Best to prepare an SPA in case the RDO officer look for this upon receiving the inventory list. 🙂
Hello.
We are a non-VAT Homeowners Association. Are we included in this RR No. 7-2024? Do we need to change from Official Receipt to Invoice too?
Since the application for authority to print takes one whole day to process and printing takes 7-14 days, we purchased 50 booklets in March 2024 only.
Appreciate your thoughts. Thank you.
Hello Geraldine,
Good day!
Yes, all are required to change from OR to Sales Invoice regardless if under VAT or non-VAT. 🙂
Hi, what are the RDO requirements if I opt to have a new set of the new Service Invoices instead of using the remaining OR with stamped?
Hello Jane,
Good day!
You will need to have a new Authority to Print for your new sales invoice. If you have a proposed sales invoice format, you can have your RDO check it for approval before printing it through their accredited printing partners. 🙂
Hi, in case I would just obtain a new set of sales invoice instead of using up my old official receipts, do I still need to do the inventory of my old receipts?
Hello Shara,
Good day!
Yes, you should still prepare and declare an inventory of unused ORs for compliance and record keeping in BIR. 🙂
I have a client whose receipts belong to the old regulation that has a 5 yr validity. His OR just expired last May 7th. Can he still use the extension(RR 7-2024) or he’s totally obliged to reprint them right away? Thank you
Hello Julianne,
Good day!
If their OR was printed before July 2022, they need to have a new printed sales invoice because only those ORs that were processed starting July 2022 are exempted of the 5yr expiration rule (voided of OR expiry date). 🙂
Are non-vat entities required to comply with RR no 7? Do they need to stamp their ORs with Invoice and/or issue an invoice? Thanks
Hello Jona,
Good day!
Yes, even non-VAT entities/individuals are required to comply to RR 7-2024. They can either strikethrough their ORs and changed the title to SALES INVOICE (valid till Dec 31, 2024 only) or print a new set of Sales Invoice booklets. 🙂
When are we supposed to submit the inventory of unused ORs if you opt to continue using them? Is it after the end of the year? Or before May 27?
Hello Darnell.
Good day!
The original deadline was last May 27, but some RDOs extended the deadline until July 31, 2024. You can check with your RDO to know if they are also extending their deadline of submission. 🙂
Hello,
Is there a deadline to submit the remaining unused OR to the BIR?
If failed to do so what will be the consequences?
Hello Carol,
Good day!
The original deadline was last May 27, but some RDOs extended the deadline until July 31, 2024. You can check with your RDO to know if they are also extending their deadline of submission. 🙂
Do I need to submit a sworn statement for the inventory of unused official receipts? or Annex D will suffice (annex-d-inventory-list-of-unused-or-expired-receipts-and-invoices) thank you.
Hello Jerlyn,
Good day!
Two copies of Annex D will suffice but prepare your old ATP too just in case your RDO asks for this file. 🙂
What receipts are to be replaced and can i have a sample of the new receipts
Thank you
Hello Evangeline,
Good day!
All Official Receipts or primary sales receipts are required to be replaced with Sales Invoice. Basically, the Sales Invoices are now the main documentation for sales, while official receipts are just supplementary. For further details on the key points of this regulation, you may refer to the article linked below, which summarizes the important considerations:
https://www.taxumo.com/blog/bir-rules-on-receipts-transitioning-to-invoices/
Hi Taxumo,
If corp is non-stock non profit, do we need to convert our OFFICIAL RECEIPTS TO SERVICE INVOICE?
Thank you.
Hello Guada,
Good day!
Yes you are also required to convert your Official Receipt to Service Invoice too. Basically, the Sales/Service Invoices are now the main documentation for sales, while official receipts are just supplementary. For further details on the key points of this regulation, you may refer to the article linked below, which summarizes the important considerations:
https://www.taxumo.com/blog/bir-rules-on-receipts-transitioning-to-invoices/ 🙂
Pingback: How to Issue the Inventory List of Unused Official Receipts
Good day,
Where can I find the Annex D for the inventory of ORs?
Thank you
Hello Norma,
Good day!
You can click this link to get our prepared template: https://docs.google.com/document/d/1XmbUc7zbwI151r5M8Q3fFSmMKOvGoGz2i7-0DdbMP34/edit 🙂
Hello,
May I ask how to apply for the new invoices?
Do we still need to go to our respective RDOs to request for ATP and approval?
Thank you.
Hello Kat,
Good day!
Yes, you should process this directly through your RDO, get a new ATP for the sales invoice booklets and have it printed via your RDO’s accredited printing partners. 🙂
Hello,
What invoice should i use? Sales or service invoice? I am in janitorial services industry but also supplies janitorial supplies.
Hello Cham,
Good day!
Kindly use Sales Invoice. 🙂
For non-vat, i can opt to just print “THIS DOCUMENT IS NOT VALID FOR CLAIM OF INPUT TAX” in bold letters at the face of the invoice.
I dont need to change it and will still be useful even after Dec 31, 2024?
Hello Elle,
Good day!
You will also need to strikethrough the OFFICIAL RECEIPT title and replace it with SALES INVOICE title. You will also need to submit an inventory list of your unused ORs too. 🙂
I am one of the officers of a homeowners’ association, my question is, do I need to comply with RR-7-2024 since homeowners’ associations are tax exempted. We collect monthly dues and other fees from homeowners to be used as payment for our security guards, maintenance of facilities and amenities, utilities, salaries of staff and other expenses. Upon collection of these fees, we issue an official receipt. Can you please enlighten me on this. Thank you very much
Hello Albert,
Good day!
Yes, you will also be required to transition from using Official Receipts to Sales/Service Invoice. Basically, the Sales Invoices are now the main documentation for sales, while official receipts are just supplementary. For further details on the key points of this regulation, you may refer to the article linked below, which summarizes the important considerations:
https://www.taxumo.com/blog/bir-rules-on-receipts-transitioning-to-invoices/ 🙂
My husband is Non-vat. Can we just stamp unused ORs with “this is not valid for claim of input tax”?
Can you also clarify the removal of the expiration for ORs?
Thank you
Hello Deb,
Good day!
Aside from the stamp of “this is not valid for claim of input tax”, you will also need to strikethrough the OFFICIAL RECEIPT title and replace it with SALES INVOICE (through stamping as well).
For the ORs please be advised that we do not have expiry dates for ORs created from July 2022, however we are still required to use the Sales Invoice starting this year to comply with the new RR 7-2024 regulation. 🙂
Hi. Is this also applicable for NON-VAT taxpayer? How does this affect the “Removal of 5-year validity period on receipts/invoices”? Could you please explain? Thank you in advance!
Hello MC,
Good day!
Yes it is applicable to all taxpayers including non-VAT individuals or business owners. Basically, the Sales Invoices are now the main documentation for sales, while official receipts are just supplementary. For further details on the key points of this regulation, you may refer to the article linked below, which summarizes the important considerations:
https://www.taxumo.com/blog/bir-rules-on-receipts-transitioning-to-invoices/
For the ORs please be advised that we do not have expiry dates for ORs created from July 2022, however we are still required to use the Sales Invoice starting this year to comply with the new RR 7-2024 regulation. 🙂
Hi
Please enlighten me, if the transaction was billed prior EOPT and the collection was made after the effectivity of EOPT, should I already issue invoice instead OR? or still OR?
May i know the basis? What RR/RMC?
Thank you.
Hello Ynna,
Good day!
You should use the Service Invoice and basis will still be the RR-2024 since this regulation is applicable for the year 2024. 🙂
Hi! I am non-VAT. I have a few questions regarding this:
1. Am I also required to submit the inventory of unused receipts on my printed ORs?
2. I have not been able to submit the Inventory of Unused Receipts since I only learned about this today, the date of the deadline. Can I opt to not use the printed ORs and just get a new set of ORs printed instead? If yes, what should I do with the unused ORs? If no and I really need to submit the inventory, is there a penalty for late submission?
3. What did you mean by updating and maintaining journals in your prior response Goodlight’s questions above?
Hello James,
Good day!
1. Yes you should still submit an inventory of unused receipts for your OR booklets.
2. The original deadline of inventory submissionwas May 27, 2024, but some RDO’s extended the deadline to July 31, 2024. You can check with your RDO and see if they also extended their deadline of submission for the inverntory list of unused ORs. If you will opt to print new sets of sales invoice, it is still best to prepare an inventory of unused ORs. 🙂
Hello, May I know when is the deadline for the inventory of old OR to the BIR?
Hello Mario,
Good day!
The original deadline was May 27, 2024, but some RDO’s extended the deadline to July 31, 2024. You can check with your RDO and see if they also extended their deadline of submission for the inventory list of unused ORs. 🙂
what is the requirement in availing new service invoice in BIR?
Hello Marifel,
Basically, the Sales Invoices are now the main documentation for sales, while official receipts are just supplementary. For further details on the key points of this regulation, you may refer to the article linked below, which summarizes the important considerations:
https://www.taxumo.com/blog/bir-rules-on-receipts-transitioning-to-invoices/
Hello,
May I ask how to apply for the new invoices?
Do we still need to go to our respective RDOs to request for ATP and approval?
Thank you.
Hello Kat,
Yes, you will need to process this directly to your RDO. 🙂
Hi, I would like to confirm the new RR 72024, here’s my scenario, I am a lessor of residential apartment, and I have my OR, my business is considered non vat. Do I still need to update my ORs? Thanks in advance for the response.
Hello Mc,
Good day!
Yes, you will need to update your ORs to Sales Invoice. Basically, the Sales Invoices are now the main documentation for sales, while official receipts are just supplementary. For further details on the key points of this regulation, you may refer to the article linked below, which summarizes the important considerations:
https://www.taxumo.com/blog/bir-rules-on-receipts-transitioning-to-invoices/ 🙂
Hi, what are the requirements and process of submitting the inventory of unused official receipt to RDO?
Hello Mary,
Good day!
You will only need to prepare your Annex D Inventory List of Unused ORs, and Authority to Print for your current ORs. You may check this template that we prepared for your reference:
https://docs.google.com/document/d/1XmbUc7zbwI151r5M8Q3fFSmMKOvGoGz2i7-0DdbMP34/edit 🙂
Is there no extension for this?
Hello Lorgina,
Good day!
Some RDOs extended their deadline until July 31, 2024. You may check with your RDO and see if they also extended the deadline of submission too. 🙂