Since the official receipt can be use as expenses which is deducted to sales, it will in effect minimize your companyвЂ™s tax payments due to lower net income. Decreases Tax PaymentsДЄnother importance of asking for an official receipt is that it can be used to legally minimize or decrease tax payables. If in case you are VAT registered and your input tax (vat on expenses) exceeds output tax (Vat on sales), you may claim for refund on the excess or difference. If you ask for an official receipt on your purchases or payments, you can validly claim it as expense and use it as deduction to sales. Without an official receipt, your accounting records is incomplete which can be risky in the long run. One of the basic benefits of asking official receipt is completeness of accounting records to support existence of recorded transactions. Some Benefits of always Having an Official Receipt of Your Purchases 1.

This is why the BIR have created different ways to remind customers to do so such as requiring business establishments to display the ASK FOR RECEIPT signage, Premyo sa Resibo raffle promos and more.ДЇurthermore, it has issued Revenue Memorandum Circular No 16-2013, stating that for expenses to be claimed as deduction to income tax, it should be substantiated by Official Receipts/Invoices issued by third-party establishments. The importance of asking for an official receipts on every purchases or payments made is not a common knowledge to individuals or business owners. For small amount, you can automate the process of your accounting, tax preparation and filing which will save you a lot of time and prevent errors. Bookkeeping is a complicated, routinely and often redundant task which takes up significant time when performed manually or using poorly designed tools.

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