“Business No-Receipt Report” in the Philippines
A comprehensive legal primer for businesses, consumers, accountants, and compliance officers
Abstract
In the Philippines, the simple act of issuing or demanding a receipt sits at the crossroads of tax administration, consumer protection, and corporate governance. This article distills everything a Philippine-based business or taxpayer should know about situations in which no official receipt (OR) or sales/commercial invoice is issued, lost, or destroyed, and explains how to prevent, detect, or report those lapses in compliance.
1. Statutory & Regulatory Framework
| Source | Key Provisions |
|---|---|
| National Internal Revenue Code (NIRC), 1997, as amended | • § 237 – Obligation to issue receipts/invoices for each sale ≥ ₱100 (for smaller amounts when demanded). • § 238 – Printing requires prior Authority to Print (ATP) or BIR Permit-to-Use (PTU) for CAS/POS. • § 113 (B) – VAT-registered persons must issue VAT invoices/ORs showing mandatory VAT breakdown. • § 235 – Books and duplicate receipts must be preserved for 10 years. • § 264 (a) & (b) – Criminal and administrative fines (₱1 000–₱50 000) and 2-4 years imprisonment for failure or refusal to issue, or for using unregistered receipts. |
| TRAIN Law (RA 10963, 2018) & CREATE Law (RA 11534, 2021) | • Raised receipt thresholds to ₱100. • Introduced Electronic Invoicing/Receipt System (EIS) for large taxpayers and exporters. |
| Revenue Regulations (RR) | • RR 18-2012 & RR 10-2015 – Detailed rules on printing requirements and Information on Invoices/Receipts. • RR 11-2020 – Intermediate guidelines on e-receipts. • RR 16-2022 – Full roll-out schedule for mandatory e-invoicing under EIS. |
| Revenue Memorandum Orders (RMO) | • RMO 3-2009 & RMO 19-2015 – Oplan Kandado program: five-day business closure for habitual non-issuance. • RMO 12-2013 – Standard operating procedures for processing “No-OR” complaints. |
| Consumer Act (RA 7394) | Consumers have an enforceable right to demand receipts to support returns, warranty claims, and complaints. |
2. Who Must Issue Receipts and When
- All persons subject to internal revenue tax—whether sole proprietor, partnership, corporation, cooperative, or professional—must issue an OR or sales invoice for every sale or service worth ₱100 or more, or for a lesser amount when the customer asks.
- E-commerce sellers and food-delivery platforms are not exempt; an electronic OR (PDF/e-invoice) is sufficient if compliant with e-receipt rules.
- The receipt must be issued “at the time the transaction is effected”, not at day-end or upon customer follow-up.
3. Form, Content, and Printing Controls
| Requirement | Highlights |
|---|---|
| Authority to Print (ATP) | Secured per booklet series; valid for 5 years or until exhausted. |
| Mandatory information | Serial & OR number, business name, TIN, address, date, quantity/description, VAT or “VAT-exempt” legends, buyer’s name (≥ ₱1 000), and breakdown of VAT/base/discounts. |
| Electronic Receipts (EOR) | Large taxpayers/exporters: upload to BIR EIS within 3 days of issuance; smaller taxpayers may voluntarily enroll. |
| Cancellation | Spoiled or void receipts must be marked “CANCELLED”, attached to duplicate copy, and kept. |
4. Common “No-Receipt” Scenarios & Required Action
| Scenario | What the Business Must Do | What the Customer/Whistle-blower Can Do |
|---|---|---|
| A. Receipt simply not issued | - Treat as a violation; train staff → issue immediately. - Self-report to the RDO if habitual lapses discovered. |
File a “No-OR Complaint” with BIR: eComplaints portal, hotline (155-IRS), or written letter to the RDO. Attach photos, purchase details, and your contact info. |
| B. Duplicate booklet lost before issuance | 1. Draft Notarized Affidavit of Loss within 30 days of discovery. 2. File BIR Form 1905 (Update) + affidavit + inventory of lost booklets. 3. Apply for reprint (ATP) or system re-serialization. 4. Annotate accounting records (“Missing OR Nos. 000201–000300”). |
N/A |
| C. Issued receipt lost by customer | Provide a certified true copy of the duplicate OR (photocopy with “CTC” stamp and signature). | Accept the certified copy; still valid for warranty and expense substantiation. |
| D. POS breakdown—temporary handwritten receipt | Use BIR-registered manual back-up booklet; encode into CAS when system is restored. | Verify that handwritten receipt bears ATP details. |
| E. Expense with no receipt (employee reimbursement) | Company may require Expense Report + Narrative + Approving Officer’s Certification. Tax impact: Expense is non-deductible for income tax and no input VAT may be claimed (§ 34 NIRC). |
Employee may still be reimbursed internally, but the company absorbs the tax disallowance. |
5. Penalties & Enforcement Tools
Administrative & Criminal Fines (NIRC § 264): ₱1 000 – ₱50 000 per act plus 2-4 years imprisonment.
Compromise penalties (BIR Table): ₱10 000 – ₱25 000 for first offense, higher for repeat.
Oplan Kandado (Business Closure): • BIR may suspend or close for minimum 5 days if:
- Non-issuance constitutes at least 10 | of sales under-declaration, or
- 3 verified “No-Receipt” incidents within a 30-day period.
Civil Consequences: Disallowed expense deductions, disallowed input VAT, surcharge/interest.
Consumer Remedies: DTI adjudication for deceptive sales practices; refund or price adjustment.
6. Reporting a “No-Receipt” Violation – Step-by-Step (for consumers & competitors)
Gather Evidence
- Photo of cashier area showing no OR signage/violation.
- Copy of any provisional slip, invoice, or bag tag.
- Note date, time, amount, names present.
Prepare a Complaint Letter or Use BIR eComplaint Form
- Required fields: Business name, TIN (if known), address, nature of transaction, approximate sale value.
Submit
- Online: https://www.bir.gov.ph >> eComplaint.
- Email: contact_us@bir.gov.ph (include attachments).
- Walk-in: RDO/Legal Division front-desk.
Follow-up
- BIR issues an Acknowledgment Ticket and may invite the complainant to testify.
- Investigators perform a tax mapping or mission order.
Rewards
- There is no official cash reward program at present, but information may contribute to tax assessments.
7. Lost or Destroyed Official Receipts – Company Procedure
| Timeline | Action Item | Form & Supporting Docs |
|---|---|---|
| Day 0 (Discovery) | Secure cashier logs; estimate missing serial numbers. | Internal incident report |
| Within 30 days | Notarized Affidavit of Loss signed by Treasurer/Controller. | Sworn statement |
| Same window | BIR Form 1905 – apply for cancellation of lost booklet and issuance of replacement ATP. | Form 1905 + inventory list |
| Book-closure | Record “Lost OR” entry in General Journal and Sales Book. | Books of account |
Failure to file the report within 30 days triggers § 264 penalties and possible disallowance of the associated sales.
8. Expense & VAT Implications of “No Receipt”
| Scenario | Income Tax Deductibility | Input VAT Claim |
|---|---|---|
| Valid OR/Invoice | Allowed (if ordinary & necessary) | Allowed |
| Lost OR, certified duplicate provided | Allowed | Allowed |
| No OR at all, only affidavit/explanation | Disallowed (§ 34 NIRC) | Not creditable (§ 110 NIRC) |
| Aggregated de minimis (< ₱300/employee/yr) | May be allowed under De Minimis Benefits Rules | N/A |
Tip: Use a “No OR Listing” in your working-papers to monitor disallowances and compute separate tax-adjusted net income.
9. Electronic Receipts & the Transition to the EIS
- Large taxpayers, exporters, and e-commerce platforms designated by BIR must generate e-invoices/e-receipts in XML + PDF and transmit to the EIS portal within 3 calendar days.
- Non-compliance (late or no upload) is penalized under RR 16-2022 at ₱1 000 per day of delay up to ₱1 million per taxable year.
- Smaller taxpayers who voluntarily adopt must still observe serial sequencing and maintain electronic books.
- Consumers may scan the QR code on an e-receipt to verify authenticity in real time.
10. Best-Practice Compliance Checklist for Businesses
| Control Area | Key Actions |
|---|---|
| Registration | Secure COR, ATP/PTU, and display “Ask for Receipt” signage. |
| Staff Training | Daily briefing on compulsory issuance and consequences. |
| POS/CAS | Use BIR-accredited software; ensure serial-to-sales reconciliation. |
| Monitoring | Surprise spot-checks; POS Z-read vs. OR stub counts. |
| Document Retention | Keep duplicates & e-backups for 10 years; adopt cloud archiving. |
| Incident Response | Written SOP for lost/void receipts and customer complaints. |
| Internal Audit | Quarterly walk-through and test buys by compliance team. |
11. Practical Tips for Consumers
- Always ask for an OR—even for online purchases (the seller can email a PDF OR).
- For warranties or product returns, the OR is still the primary evidence.
- Keep digital photos of receipts; ink fades quickly in tropical humidity.
Conclusion
Non-issuance or mishandling of official receipts is more than a minor paperwork slip—it cuts to the heart of tax integrity, consumer rights, and a business’s license to operate. Philippine law provides clear, escalating penalties for violators—but it also offers straightforward remedies and procedures for honest taxpayers to stay compliant. By embedding diligent receipt practices, robust internal controls, and prompt reporting protocols, enterprises can steer clear of fines and closures, while contributing to a fairer revenue system for everyone.
Disclaimer: This material is for general information only and is not a substitute for formal legal or tax advice. Consult the Bureau of Internal Revenue, the Department of Trade and Industry, or a qualified professional for guidance tailored to your specific circumstances.