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Tax Notes

Business style in official receipts/invoices is business name

Bureau of Internal Revenue (BIR) Regulations prescribe the information that should be indicated on the official receipts (ORs) and invoices to substantiate expenses. The required information includes the customer’s name, address, Tax Identification Number (TIN), and business style. For noncompliance, the BIR may impose fines, penalties, and disallowance of the expense.

Taxpayers who have long been baffled by what to indicate on the “business style” portion required in the OR’s and invoices will be relieved to know that, on May 21, 2019, the BIR issued Revenue Memorandum Circular (RMC) No. 55-2019, providing the much needed clarification.

As stated in RMC No. 55-2019, “Business Style” pertains to the business name registered with the concerned regulatory body, contrary to the common misconception that the phrase refers to the nature or industry of the business.

To further explain, the BIR presented the following illustrations:

“1) A corporation is registered under the corporate name of XYZ Entertainment Corporation. Based on its Certificate of Registration issued by the Securities and Exchange Commission (SEC), the Corporation is operating under the business name of “Bozo the Clown.” In this case, the business style is the business name which is “Bozo the Clown.”

“2) A single proprietor named Juanita M. Ricafrente registered a business name with the Department of Trade and Industry (DTI). Reflected in her DRI Certificate of Registration is the business name of “JMR Trading.” Hence, the business style is “JMR Trading”.

For companies/partnerships that have multiple business or trade names for their various business segments and/or branches, the business style to be reflected on the OR must be declared in the articles of incorporation or partnership, as required by the Securities and Exchange Commission or with the Department of Trade and Industry.

With the issuance of RMC No. 55-2019, hopefully ORs and invoices will never go out of business style.



P&A Grant Thornton

Certified Public Accountants

P&A Grant Thornton is the Philippine member firm of Grant Thornton International Ltd


As published in SunStar Cebu, dated 30 May 2019