At A Glance
- The Bureau of Internal Revenue (BIR) has introduced a new exemption for certain agricultural producers with annual gross sales of less than P1 million.<br>The exemption aims to streamline government transactions.<br>Producers under this exemption are not required to issue invoices and receipts to clients. However, they must maintain a simplified sales book to record each sale transaction.<br>The sales book should include essential details such as transaction date, description of goods and services sold, sales amount, withheld tax, and registered name of the purchaser if engaged in business.<br>The exemption applies to agricultural producers involved in the sale of farm produce, livestock, poultry, marine products, ordinary salt, and agricultural inputs like fertilizers and seedlings.<br>The regulations cover agricultural products, even if they have undergone basic preparation or preservation for the market.
The Bureau of Internal Revenue (BIR) has introduced a new exemption for certain agricultural producers with annual gross sales of less than P1 million, aimed at streamlining government transactions.
According to Revenue Regulations No.12-2023, signed by Finance Secretary Benjamin E. Diokno and recommended by BIR Commissioner Romeo D. Lumagui Jr., these producers are no longer required to issue invoices and receipts to their clients.
However, agricultural producers falling under this exemption are still obligated to maintain a simplified sales book for recording each sale transaction.
This record must include essential details like the transaction date, description of goods and services sold, sales amount, withheld tax and the registered name of the purchaser if engaged in business.
The categories of agricultural producers covered by these guidelines include those involved in the sale of farm produce, livestock, poultry, marine products, ordinary salt, and agricultural inputs like fertilizers and seedlings.
These regulations apply to agricultural products, even if they have undergone basic preparation or preservation for the market.
Section 237 of the Tax Code requires sellers of goods and services to issue sales papers for transactions worth P100 and more, except for those agricultural producers meeting the specified criteria.