#AskTheTaxWhiz: Can I start a business without official receipts?

I am planning on starting a business, but I don't want to delay my business because the official receipts haven't been delivered or printed yet. Can I start a business without official receipts?

Yes. According to Revenue Memorandum Circular (RMC) No. 28-2019, taxpayers who have already registered but have not yet received their official receipts can already begin their business.

Instead of official receipts, they will be allowed to use BIR Printed Receipts (BPRs) or BIR Printed Invoices (BPIs) which can be secured at the New Business Registrants Counter. They can only use this for a period of 15 days from the date of registration.

Utilizing the BPRs or BPIs is entirely optional and taxpayers may instead use their own receipts or invoices covered by the authority to print (ATP) during registration.

The BPR or BPI is issued as principal evidence in the sale of goods or services and can be used as supporting documents when claiming deductions.

Does this mean I no longer have to apply for authority to print during registration?

No. RMC 28-2019 notes that new business registrants are required to secure ATP for principal receipts or invoices.

In fact, the BIR issued new forms for business registration under RMC 27-2019. The updated forms still list BIR Form No. 1906 (Application for Authority to Print Receipts and Invoices) as a requirement for registration.

RMC 27-2019 circulates the new registration forms for the following:

Keep these new forms in mind if you're planning on registering your business. Using the outdated application forms could cause you unnecessary difficulty.

After starting your business, your next worry will be tax compliance. Already on its way to automate tax compliance, the TaxWhizPH mobile app makes paying taxes easier especially for the self-employed. Since the app is part of an advocacy to improve the ease of paying taxes, the TaxWhizPH mobile app is free to use. It is already available for download at the App Store (iOS) or the Play Store (Android).

For questions and inquiries, you can reach us at consult@acg.ph or via (02) 622-7720. – Rappler.com

Mon Abrea, popularly known as the Philippine Tax Whiz, is one of the 2017 Outstanding Persons of the World, a Move Awards 2016 Digital Mover, one of the 2015 The Outstanding Young Men of the Philippines (TOYM), an Asia CEO Young Leader of the Year, and founding president of the Asian Consulting Group (ACG) as well as the Center for Strategic Reforms of the Philippines (CSR Philippines). Assisting him in his column is JM Miñano, communications associate of ACG. He graduated with a bachelor's degree in Communication Arts from the University of the Philippines Los Baños.

For inquiries, you may email consult@acg.ph or visit www.acg.ph for tax-related concerns.