THE Bureau of Internal Revenue (BIR) has clarified that “marginal income earners” are not required to issue invoices or receipts for their business transactions.
Marginal income earners include small businesses such as sari-sari stores and micro-entrepreneurs such as tricycle drivers, street peddlers, and ambulant or sidewalk vendors.
BIR Regional Director Tomas Rosales made the clarification in the wake of reports that the bureau is now requiring owners of small stores to issue cash invoices for goods worth P25 and above.
Rosales explained that the marginal income earners category cover those with annual gross sales or receipts amounting to P100,000 and below.
These businesses are exempt from paying the annual registration fee of P500 and a percentage tax.
In another category, businesses with gross sales below P1.5 million a year and registered as non-VAT (value added tax) taxpayer are required to pay the annual registration fee and a monthly percentage tax of three percent, explained lawyer Beverly Milo, BIR assessment division chief.
Business owners can also choose to register as a VAT-taxpayer even though their gross receipts amount to less than P1,500,000 .
Meanwhile, Rosales, citing the good collection record to the efficiency of the BIR staff, expressed confidence that the regional office can attain its collection goal for the year with its P600 million “buffer” for the first semester.
He added that the campaign against tax evasion through the Run After Tax Evaders (RATE) program, Oplan Kandado, Project “Iboto Mo” and “Project RIP” have also been effective.
Lawyer Francisco Sarmiento said the bureau’s policy now is to follow up assessment and collection, then pursue prosecution of those found violating the tax code, as mandated by RATE, Oplan Kandado and other campaign against tax evasion.
RATE runs after business owners with criminal intent not to declare income, while Oplan Kandado is an administrative proceeding against those who fail to issue receipts or invoices, under-declare sales by at least 30 percent or fail to register as a VAT taxpayer.
Recently, three merchandize stores in Dagupan City were padlocked because the owner had failed to pay the right amount of taxes.
Revenue District Officer Yolanda Ferrer also said the district also exceeded its collection target for the first six months by about P151 million, which serves as an indication her office can achieve its goal for the year.