Sales Invoice Requirements for Sari-Sari Stores in the Philippines
A practitioner’s overview of the statutory, regulatory, and practical rules in force as of 28 May 2025
Important: The discussion below is based on the National Internal Revenue Code (NIRC) of 1997, as last amended by the TRAIN Law (RA 10963, 2017) and the CREATE Law (RA 11534, 2021), together with the most relevant Bureau of Internal Revenue (BIR) regulations, memoranda and rulings issued up to May 2025. It is intended for general information only and does not replace personalised legal or tax advice.
1. Background: why the BIR cares about sari-sari stores
Sari-sari stores are micro-retail outlets—often attached to a residence—that sell basic food, beverages and household sundries “by the piece” (tingi). In legal terms, they are engaged in the sale of goods; hence their transactions fall under Title IV (Value-Added Tax) and Title V (Other Percentage Taxes) of the NIRC, and under Section 237 on the issuance of sales invoices.
2. Statutory foundation
| Provision | Key rule for sari-sari store owners |
|---|---|
| § 236, NIRC | Every person subject to any internal-revenue tax must register with the BIR and display a Certificate of Registration (COR, Form 2303). |
| § 237, NIRC | A sales invoice must be issued for every sale of goods ≥ ₱100. For sales below ₱100, it must still be issued on demand of the buyer. |
| § 238, NIRC | No person may print or use invoices/receipts without an Authority to Print (ATP) or a registered Cash Register Machine (CRM) / POS. |
| § 264, NIRC | Failure to issue, or issuance of unregistered/ghost invoices, triggers administrative fines (₱1,000 per act, max ₱50,000) and possible criminal prosecution and business closure. |
3. Which document—sales invoice or official receipt?
| Type of business | Primary BIR document |
|---|---|
| Sale of goods (e.g., sari-sari store, grocery, pharmacy) | Sales Invoice (SI) |
| Sale of services (e.g., salon, consultancy) | Official Receipt (OR) |
Since a sari-sari store sells tangible goods, it must issue SIs, not ORs, even if it is non-VAT-registered.
4. VAT vs. Non-VAT and the small-store threshold
| Regime | Current threshold | BIR label to be printed on the SI |
|---|---|---|
| VAT (12 % output tax) | Annual gross sales > ₱3 million | “VAT-Registered” |
| Non-VAT / Percentage-Tax | ≤ ₱3 million (Sec. 109[BB], as amended) | “NON-VAT – Tax Exempt under Sec. 109(1)(BB), NIRC” |
| BMBE (RA 9178) | Must have BMBE Certificate + ≤ ₱3 M | “NON-VAT – BMBE” |
Tip: Most sari-sari stores fall below the ₱3 million VAT threshold and opt for the 3 % percentage tax (1 % during 1 July 2020 – 30 June 2023 under CREATE) or apply as a Barangay Micro-Business Enterprise (BMBE) to enjoy percentage-tax exemption.
5. Exemptions and special categories
Marginal Income Earners (MIEs)
- Defined in RR 7-2012 as self-employed individuals whose annual gross not exceed ₱100,000.
- Exempt from business tax but not from income tax.
- Advised (not strictly required) to issue a simple register book or informal receipts in lieu of a printed SI.
Purely occasional sellers (garage sales, one-off events) are not covered by the habitual-transaction rule.
If in doubt, the BIR’s default stance is to require an SI.
6. Compliance steps for a sari-sari store
| Stage | Action | BIR form / proof |
|---|---|---|
| Registration | Register TIN, pay ₱500 Annual Registration Fee | BIR Form 0605 + COR (Form 2303) |
| ATP / printer | Apply for Authority to Print manual SIs, or register a CRM/POS | BIR Form 1906 (for ATP) or 1907 / 1900 (for CRM/POS) |
| Bookkeeping | Secure bound manual books (General Journal/Ledger, Cash Disbursements, Cash Receipts) or have a BIR-approved Loose-Leaf/Computerized Accounting System | BIR Form 1905 (if stamping) |
| Display | Post the PTU plate (Permit-to-Use) beside the cash box | |
| Issuance | Give the customer copy of the SI on each qualifying sale; retain the duplicate copy for 10 years | |
| Filing & payment | File Quarterly Percentage Tax Return (2551Q) or VAT (2550Q) and Annual Income Tax (1701/1702) |
7. Form and content of a valid sales invoice
Under RR 18-2012, RR 16-2018, RMC 72-2020, and the CREATE amendments (which removed the old “5-year validity” rule), a principal SI must contain all of the following:
Serial number (consecutive, 12–13 digits) and Invoice Number.
Date of transaction (format: yyyy-mm-dd).
Seller’s details
- Registered Name
- Business Name/Style (if different)
- Address
- Tax Identification Number (TIN) + branch code (e.g., TIN-000).
- VAT or Non-VAT statement (see § 4 table).
Buyer’s Name / Address / TIN (required only if ₱1,000 or more; optional below).
Description of goods (plain language), quantity, unit price, gross amount.
VAT breakdown (if VAT-registered):
- Gross selling price (VAT-exclusive)
- VAT amount (12 %)
- Total invoice value (VAT-inclusive).
Signature (or name) of the seller-issuer or cashier.
System references if issued by CRM/POS (e.g., terminal ID, machine serial).
Footer legends:
- “THIS DOCUMENT IS NOT VALID FOR CLAIM OF INPUT TAX” (for non-VAT).
- “THIS INVOICE SHALL BE VALID UNTIL PERPETUALLY, PER CREATE LAW” (BIR still allows old pre-printed legend to stay until stocks are exhausted).
QR code (for large taxpayers covered by e-Invoicing; optional for micro-stores).
8. Manual versus electronic issuance
| Mode | Who may use it | Key compliance notes |
|---|---|---|
| Manual, BIR-printed receipts | The smallest stores; easiest compliance | Buy booklets directly from the RDO. No ATP needed, but booklet details are pre-registered by the BIR. |
| Manual, taxpayer-printed | Slightly larger; wants branding | Secure an ATP (Form 1906) from RDO, print at an accredited printer; report printer’s job completion within 30 days. |
| CRM / POS | Stores with daily volume but still micro | Register the machine (Form 1900/1907); issue tape receipts bearing all mandatory data; Z-read end-of-day reports kept for 5 years. |
| EIS / e-Invoice | Mandatory only for Top 1000 taxpayers OR exporters / e-commerce enterprises ≥ ₱500M sales | Not yet compulsory for micro-retailers, but voluntary enrolment allowed since 2024. |
9. Penalties and enforcement hot-spots
| Non-compliance | Statutory penalty | Typical BIR practice |
|---|---|---|
| Failure to issue SI | ₱1,000 per instance up to ₱50,000; plus surcharge/interest on unpaid tax | Surprise “Oplan Kandado” visit, inventory count, 5–15 day business closure. |
| Use of unregistered / expired SI or CRM | Same as above plus confiscation of books and machines | Closure order until compliance + penalty paid. |
| Possession of multiple / ghost SIs | Fine and imprisonment 2–4 years (Sec. 264-A) | Prosecution rare for micro-stores, but documented in grey-market cigarette cases. |
Pro-tip: Even a tiny sari-sari store is safer over-complying (issue a manual SI for any sale ≥ ₱100; keep a daily cash sheet) because closure for three days hurts more than the cost of a receipt booklet.
10. Interaction with local government and other rules
Business permit offices often cross-check with the BIR: without a COR and ATP (or BIR-printed booklet number), renewal of the barangay and mayor’s permits may be held. The Consumer Act (RA 7394) also obliges sellers to provide a receipt upon demand; a barangay-scale complaint can thus morph into a BIR case.
11. Best-practice checklist for the sari-sari proprietor
| Daily | Monthly / Quarterly | Annually |
|---|---|---|
| • Record every sale ≥ ₱100 in the duplicate SI. • Staple small cash-out papers (ice, load, water) to a petty-cash sheet. |
• File 2551Q (percentage tax) or 2550Q (VAT). • Reconcile physical SI numbers with the cash notebook. |
• File 1701A/1701 (income tax). • Renew business permit and post new stickers. • Pay ₱500 BIR Annual Registration Fee (on or before 31 January). |
Keeping one bound book for daily cash and one envelope for used SIs is usually enough to satisfy the field revenue officer.
12. Frequently asked questions
“My average sale is only ₱25—do I still have to issue an SI?” Only if the buyer asks. But once a single sale hits ₱100, the statutory duty is triggered.
“Can I re-use old unused SIs that bear the ‘Valid until 2024’ legend?” Yes. § 237, as amended by the CREATE Law, abolished the 5-year expiry. Use them until the serial run is finished, then secure a new ATP.
“I switched from Non-VAT to VAT in mid-year—do I need new booklets?” Yes. Change in tax type is a “change in line of business” under RR 18-2012; apply for a fresh ATP and surrender/consume old SIs, marking them “CANCELLED – became VAT on [date]”.
13. Conclusion
For the humble sari-sari store, complying with the BIR’s sales-invoice rules is less about paperwork and more about safeguarding the livelihood from surprise closures, surcharges, and reputational harm. The legal landscape has actually simplified over the last decade—manual booklets remain perfectly acceptable, the 5-year reprinting rule is gone, and percentage tax is straightforward. What has not changed is the BIR’s power to padlock a non-compliant stall.
A proprietor who (1) registers, (2) keeps legitimate sales invoices, and (3) files the short quarterly tax form can sleep soundly—even if the nightly sari-sari chatter goes late into the humid Philippine summer night.
Prepared 28 May 2025 — Asia/Manila