Reminder on the invoicing requirements

(Revenue Memorandum Circular No. 55-2019)

This Tax Alert is issued to remind all concerned on the meaning of “business style” required to be indicated in the official receipts and invoices.

As clarified under RMC No. 55-2019, the required “business style” in the receipts/invoices refers to the business name registered with the concerned regulatory body used by the taxpayer other than its registered name or company name. 

For example, a corporation with corporate name of XYZ Entertainment Corporation, is operating under the business name of "Bozo the Clown" per its SEC Certificate of Registration. In this case, the business style is the business name which is "Bozo the Clown". For individuals engaged in business, for example, a single proprietor named Juanita M. Ricafrente’s registered business name with the Department of Trade and Industry (DTI) is "JMR Trading". Hence, her business style is "JMR Trading".

The rules on the issuance of receipts and sales invoices provide that the taxpayer’s “business style”, if any, must be indicated in the receipts/invoices. In addition, for sales in the amount of P1,000 or more and where the sale or transfer is made to a VAT-registered person, or where the receipt is issued to cover payment for rentals, commissions, compensation or fees, the “business style”, if any, of the purchaser, customer, or client shall be indicated in the receipts/invoice.

Note that failure to issue receipts/invoices that do not contain all the information required to be shown therein is punishable by a fine of not less than P1,000 but not more than P50,000, and suffer imprisonment of not less than 2 years but not more than 4 years. Amount of compromise that may be paid amounts to P5,000 for the 1st offense and P10,000 for the 2nd offense. While subsequent violations can no longer be compromised.