1) The short legal position in Philippine practice

Yes—parking operators engaged in business are generally required to issue a BIR-registered proof of sale for parking fees collected. Traditionally, this proof of sale took the form of an Official Receipt (OR) because parking is commonly treated as a service.

However, under the government’s shift toward invoicing (including reforms that treat the invoice as the primary document for both goods and services), the compliance focus is best stated this way:

A parking operator must issue a BIR-registered invoice/receipt that meets BIR requirements—a parking ticket by itself is not automatically a valid BIR receipt unless it is an authorized, compliant document generated/printed under BIR rules.

So, if the question is strictly “Is an ‘Official Receipt’ required?” the legally correct modern framing is: a compliant BIR document is required; whether it is labeled OR or invoice depends on the operator’s registration, system, and transition rules in force for their business.

2) Why parking fees trigger receipt/invoicing obligations

2.1 Parking is a taxable business transaction

A parking operator typically earns from:

Parking fees (hourly/daily/overnight)
Monthly parking subscriptions
Penalties (lost ticket, overtime, towing/immobilization fees, depending on setup)

These are generally considered income from business and commonly treated as consideration for:

a service (use of parking facility management and access), and/or
lease/use of space (depending on structure and documentation)

Either way, the operator is selling something for a price, which is the core trigger for receipt/invoice issuance under Philippine tax rules.

2.2 The National Internal Revenue Code (NIRC) requires issuance of proof of sale

Philippine tax law requires persons engaged in business to issue receipts/invoices for sales of goods or services, and prescribes:

what must appear on the document,
printing/system authority requirements,
and penalties for failure or refusal to issue.

For VAT-registered taxpayers, the invoicing requirement is even stricter (VAT details must be stated properly).

3) “Parking ticket” vs “Official Receipt” vs “Invoice”: what counts?

3.1 A parking ticket is usually not the tax receipt by itself

A typical ticket dispensed at the barrier (with only time-in and a stub number) is mainly a control document for operations. By itself, it usually lacks required information such as:

business name/registered name and style,
business address,
taxpayer identification number (TIN),
VAT registration status (if any),
serial number format and authority to print/system permit references,
breakdown of VAT (if VAT-registered),
required phrases (e.g., “VAT Registered TIN …” or “NON-VAT” markings depending on status),
and other BIR-mandated content.

Result: the ticket alone may be operationally useful but may not satisfy BIR proof-of-sale requirements unless it is designed and authorized as a compliant receipt/invoice output.

3.2 What the customer is legally entitled to receive

From a tax and consumer protection standpoint, the customer is entitled to a document that serves as proof of payment and proof of sale. In practice, this is fulfilled by any of the following if BIR-compliant and authorized:

a BIR-printed receipt/invoice (from an authorized printer),
a POS/CRM-generated receipt/invoice from a BIR-permitted system,
an electronic invoice/receipt allowed under BIR rules and the taxpayer’s system registration.

3.3 “Official Receipt” terminology in transition

Historically:

Sales Invoice (SI) → goods
Official Receipt (OR) → services

Reforms and BIR issuances have moved toward invoice-centered documentation. Practically, many businesses still use ORs during transition or based on their existing registrations and printed forms, but the safe compliance view is:

The operator must issue the correct BIR-registered document recognized for their transaction and registration (invoice/receipt), containing the required information, and issued at the proper time.

4) When must the parking operator issue the receipt/invoice?

4.1 Timing: upon collection

As a rule, the proof-of-sale document should be issued when payment is received (i.e., at the cashier or upon payment at the machine/app, depending on the setup).

For monthly parkers or billed arrangements:

issuance generally aligns with the billing/payment terms and applicable tax accounting rules (e.g., issuance upon collection or billing depending on VAT/non-VAT method and the nature of the arrangement).

4.2 Small amounts and “upon request”

Philippine rules have long had a low-value threshold concept (commonly encountered as a “₱100 and above” rule) and also a firm rule that a receipt/invoice must be issued when the customer asks, even for smaller amounts.

Practical takeaway: even if an operator uses consolidated reporting for tiny transactions, they must be able to provide a compliant receipt/invoice when requested.

5) VAT vs Non-VAT parking operators: what changes?

5.1 If VAT-registered

A VAT-registered parking operator must issue a VAT invoice/receipt that:

states VAT registration details and TIN,
shows the VAT amount (or VAT breakdown),
complies with VAT invoicing rules.

Failure to issue correct VAT invoices/receipts can expose the operator to:

tax assessments,
disallowance of input VAT on the buyer side (in B2B contexts),
penalties and possible business suspension/closure for serious violations.

5.2 If Non-VAT (percentage tax or otherwise)

A non-VAT operator must still issue proof of sale, but the document should clearly show the taxpayer’s status (commonly “NON-VAT”) and must not misrepresent VAT.

6) System-based parking (barrier machines, pay stations, QR/app): compliance requirements

Modern parking often uses:

entry/exit barrier systems,
pay-on-foot kiosks,
QR-based payment and validation,
app-based wallet payment.

6.1 These systems must be BIR-registered/authorized if they generate receipts

If the receipt/invoice is printed by a machine or generated by software, the operator typically must:

secure BIR authority/registration for the Cash Register Machine (CRM)/Point-of-Sale (POS) or similar system,
ensure receipts carry required information, including serial numbering and taxpayer details,
comply with reporting and recordkeeping rules.

6.2 A two-document setup can be acceptable (ticket + official receipt/invoice)

Many compliant operators implement:

Ticket/Stub = control document for parking duration
Receipt/Invoice = issued at payment as BIR proof of sale

The key is that the customer ultimately receives the BIR-compliant document.

7) Who exactly is obligated: operator vs property owner vs contractor

Parking in malls, condominiums, hospitals, and business districts is often outsourced.

7.1 The party collecting the fee must be able to issue the receipt/invoice

The obligated issuer is generally the party that is:

engaged in business, and
receiving the payment (or earning the income) from the parking transaction.

Common structures:

Parking contractor collects in its own name → contractor issues receipts/invoices.
Property owner collects; contractor only manages → owner issues receipts/invoices.
Revenue-share arrangements → depends on who is the seller to the public; documentation must match the contractual and operational reality.

Misalignment (e.g., contractor collects but receipt bears a different taxpayer without proper arrangement) is a common compliance risk.

8) Special case: LGU-operated or on-street parking

8.1 LGU collections are usually receipted under government accounting forms

If the parking fee is collected by a city/municipality or its authorized collectors as a government charge, receipts may be issued under government accountable forms (e.g., treasury official receipts) governed by public finance and auditing rules.

8.2 If an LGU engages a private operator

If a private operator collects fees as a business, the private operator’s BIR compliance comes into play. The exact treatment depends on the concession/contract:

who is the seller to the public,
who recognizes revenue,
who is authorized to collect and in what name.

9) Penalties and enforcement risks for not issuing receipts/invoices

Parking is high-volume, low-ticket—exactly the kind of business where the BIR expects controls.

Consequences of failure/refusal to issue compliant receipts/invoices can include:

statutory penalties under the NIRC (including fines and potential imprisonment depending on the violation),
compromise penalties and tax assessments,
administrative sanctions, including possible temporary closure for serious or repeated violations in appropriate cases,
exposure during BIR surveillance operations (e.g., test-buy/monitoring operations).

From the customer side, refusal to issue proof of sale can also raise consumer protection and local regulatory concerns (e.g., business permit compliance).

10) What a compliant parking receipt/invoice should typically contain

While exact formats depend on BIR rules applicable to the taxpayer, a compliant receipt/invoice commonly includes:

Taxpayer and registration details

Registered business name and/or trade name
Business address
TIN
VAT registration details (if VAT-registered)
Branch code (if applicable)

Document control

Serial number (properly formatted and sequential)
Date of transaction
Machine/system identifiers if POS/CRM-generated
Required authority references (e.g., printer authority/system permit details, depending on format)

Transaction details

Description (e.g., “Parking Fee” with duration/time reference if desired)
Amount paid
VAT breakdown (if VAT-registered)
Any discounts, if applicable (and basis)

11) Practical compliance checklist for parking operators

Confirm who the seller is (operator vs owner) and align contracts, signage, and collection practice.
Ensure BIR registration of the business and branches where collections occur.
Use BIR-authorized printed forms or a BIR-registered POS/CRM capable of issuing compliant receipts/invoices.
If using tickets, treat them as control documents, not substitutes—unless properly authorized and compliant.
Train cashiers/attendants to issue receipts/invoices upon payment and upon request, even for small amounts.
Ensure correct VAT or non-VAT markings and computations.
Keep proper books and records and reconcile ticket counts, machine logs, cashier collections, and issued receipts/invoices to reduce audit exposure.

12) Bottom line

Parking operators are generally required to issue a BIR-compliant proof of sale for parking fees collected.
Calling it an “Official Receipt” reflects the traditional treatment of parking as a service, but documentation is increasingly invoice-centered under Philippine reforms.
A parking ticket is not automatically an official receipt; it only counts if it is BIR-authorized and contains required information.
VAT status, collection structure, and whether the system is POS/CRM-based materially affect the exact compliance steps—but the obligation to provide a compliant document remains the rule, not the exception.