(NAR) VOL. 25 NO. 1 / JANUARY - MARCH 2014
Revenue Regulations No. 18-2012 and Revenue Memorandum Order (RMO) No. 12-2013 in relation to Sections 106, 108, 113 and other pertinent provisions of the National Internal Revenue Code (NIRC), as amended, mandate that:
In relation thereto, Section II (H) of RMO No. 12-2013 provides that:
“II. POLICIES
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H. The buyer of goods on account or credit evidenced by a Charge Sales Invoice shall be entitled to claim input taxes. Upon collection of the account by the seller, a Collection Receipt (Supplementary Receipt) shall be issued to the client/buyer to evidence the receipt thereof;
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Based on the foregoing, the Sales invoice shall serve in lieu of Official Receipt in the sale of goods or properties for evidentiary purposes in terms of audit.
In view thereof, this Circular is hereby issued to reiterate that the provisions set forth in RR No. 18-2012 and RMO No. 12-2013, in the issuance of Principal and/or Supplementary Receipts/Invoices in the ordinary course of business and the consequent examination of evidence of receipt of payment, shall be strictly observed.
All internal revenue officials and employees are hereby enjoined to give this Circular as wide a publicity as possible.
(SGD) KIM S. JACINTO-HENARES
Commissioner of Internal Revenue