The Bureau of Internal Revenue (BIR) has exempted from issuing receipts agricultural producers whose annual gross sales/receipts do not exceed P1 million.
“Small farmers do not need to issue receipts. The BIR will do its part in making the lives of our farmers easier. The BIR will only require receipts if their annual gross sales/receipts exceed P1 million,” BIR Commissioner Romeo Lumagui Jr. said in a statement yesterday.
For ease of doing business, the BIR issued revenue regulation 12-2023 which removes the requirement of principal and supplementary gross sales/receipts for the sale of agricultural food products by these small farmers.
Agricultural food products refer to products in their original state which are generally used for yielding or producing food for human consumption, such as farm produce, livestock, poultry, marine product, ordinary salt and agricultural inputs.
Products that have undergone the simple process of preparation or preservation for market are also covered.
Agricultural producers, however, should still record each sale transaction in a simplified sales book.
“If the annual gross sales/receipts exceed P1 million at any time during the taxable year, the agricultural producer shall be required to issue official receipts/sales invoices for each subsequent transaction valued at P100 or more,” the regulation states.
Agricultural producers covered by the regulation include suppliers/producers/sellers, contract growers and millers of agricultural food products.
