BIR Invoicing Requirements for Cash Advance Liquidations and Reimbursements

To: All Employees

In compliance with the Bureau of Internal Revenue (BIR) regulations, all employees are reminded of the invoicing requirements when liquidating cash advances or requesting cash advances for business expenses. Failure to submit valid invoices may result in non-reimbursement or tax implications for the company.

1. Invoicing Requirements

To ensure compliance, all liquidations and reimbursements must be supported by valid invoices that meet the following BIR requirements:

• Sales Invoices / Service Invoices / Invoices / Converted Invoices issued by BIR-registered sellers
• Must contain the Taxpayer Identification Number (TIN) of the issuer
• Must reflect the Business Name and Address of the issuer
• Must include a Serial Number, Date of Issue, and BIR Permit Number
• Must indicate VAT or Non-VAT details (if applicable)
• Must specify the Description of Goods/Services, Quantity, Unit Price, and Total Amount

2. Sample Valid Invoices Acceptable by the BIR

Below are examples of invoices that meet BIR requirements:

Example 1: Service Invoice

Example 2: Sales Invoice

Example 3: Converted Official Receipt to Invoice

·       Per BIR RR 11-2024, items previously not shown, such as the unit cost, quantity and description or nature of sold goods/services, must be stamped in the converted Official Receipt.

Example 4 : E-invoice

3. Submission and Compliance

A. Supplier Accreditation & BIR-Registered Vendors

• Only transact with BIR-registered suppliers and service providers to ensure invoices are valid.
• Check if the supplier has a valid BIR Authority to Print (ATP) on the invoice.

B. Proper Documentation & Record-Keeping

• Ensure that the invoice clearly states the nature of the expense (e.g., “Office Supplies” instead of just “Merchandise”).

C. Timeline for Submission

• Submit liquidations within 5 days from the date of expense or activity.
• Late submissions may be subject to non-reimbursement or require special approval.

D. Cash Advance Restrictions

• Cash advances should only be used for official business purposes and must be liquidated in full.
• Any unused portion of the cash advance must be returned immediately with a validated deposit slip or receipt.