All income earners, except those who receive only compensation, are required to issue a receipt or invoice for each sale of services or products. The BIR even requires that all businesses prominently display the sign "Ask for Receipt" in their establishments. This is to ensure that all purchasers are aware of their right to request a receipt or invoice and that the tax on said sale is properly declared and remitted to the BIR. If you, as a buyer of a service or goods, require a receipt or invoice registered by the BIR, you will have the advantage of ensuring that the payment you have made is valid and supported by documents for accounting and tax purposes.

However, despite the importance of issuing a receipt or invoice, many businesses are still penalized for not issuing them. Some may not issue them intentionally, but for many it is due to the lack of awareness and knowledge of the business owner and/or their employees on how to issue a receipt or invoice.

Personally, I always exercise my right to Ask for Receipt BIR or invoice when I make purchases at a store, such as for gasoline, transportation, groceries, supplies, rent, etc. I do this so that I can back up my payments with valid documentation. Sometimes I even ask for a manual receipt or invoice with NIRI BIRentry. I do this if the receipt or invoice was printed on thermal paper (which fades over time) or if the store does not have a cash register and the cashier will not issue a receipt or invoice unless asked.

It has been my experience that some cashiers don't know what a manual receipt or invoice is, while others don't know how to properly issue them when I ask. From this experience, I have written this article to serve as a guide for business owners and non-bookkeepers to better understand an official receipt.

What is an official receipt?

An official receipt is generally a document that evidences the sale of a service. It is issued after the customer has received payment.

Who issues the official receipt?

The official receipt is issued by the cashier or other person who has the cash or collection from the business.

Where is the issued official receipt kept?

The official receipt is kept and issued at the business premises and is usually kept by the cashier.

The accountant or bookkeeper may also keep the official receipt issued or used, as it serves as proof and basis for record keeping.

It is advisable to retain copies of issued official receipts for a period of at least 10 years. This is in case of a future audit.

You should also not throw away unused official receipts because of Notice to Issue Receipt or Invoice, as you will need to hand them over to the BIR, especially when you close your business.