As a business owner, you are required to issue receipts and invoices when you receive income, bill services and/or deliver goods. This seems to be very simple but surprisingly, it is one of the recurring issues during tax audits (or even in normal dealing with suppliers). Please know the importance of Authority to Print (ATP) Receipts and Invoices and the consequences of non-compliance. Read on.
What is Authority to Print?
Since business owners are required to issue registered receipts and invoices, they need to make sure that these documents are authorized to be printed by BIR. They cannot use internal documents or receipts/invoices purchased from bookstores. ATP is your permit from BIR allowing a registered printer to print your receipts and invoices. It is usually secured after processing of Certificate of Registration (COR) with the BIR and simultaneously with Books of Accounts.
Scope and validity
ATP is for taxpayers who have registered manual books of accounts. It is also for taxpayers who are registered to use loose-leaf books or computerized accounting system (CAS) in which receipts and invoices are not part of the registration. It means, you may use CAS for books and ATP for receipts/invoices. Your receipts and invoices are classified into two categories: primary and supplementary receipts/invoices. Primary documents are official receipts and sales invoice only. All other documents such as provisional receipt, acknowledgement receipt, billing statement/invoice are classified as supplementary.
The ATP is only valid for 5 years. 60 days prior to expiration, taxpayer should apply for another ATP. Penalties are charged for late application.
Consequences of noncompliance
BIR had set a table of penalties related to noncompliance of registration of receipts and invoices. Examples are P10,000 and P20,000 for 1st and 2nd offense, respectively, for failure to issue receipts or sales or commercial invoices. The same amount of penalty will apply for issuing receipts or invoices without authority from the BIR. However, recently, BIR had used a more aggressive approach for noncompliance which involve the suspension and temporary closure of the taxpayer’s business known as "Oplan Kandado." This is very painful to the business.
Also, non-issuance of official receipts and invoices may also affect your relationship with vendors/suppliers. They, in turn, need these documents for their compliance.
It is always worthy to understand compliance and actually implement it in the business. A simple ignorance of the law or the lax in implementation of it may bring so much pain to the business for costs and penalties and to you, as the business owner.
Should you need assistance for the application of ATP, you may send an email @ michellepalma33@gmail.com.
For questions or feedback, please comment below.
Disclaimer: The views or opinions in this article are mine. This is not a substitute for seeking professional advice.
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