Why should you always ask for official receipts?
- Keep a Complete Record of Expenses
- Proof of Purchase
- Compliance With Regulations
At some point when you’ve entered a retail store or a restaurant, you might have seen a medium-sized piece of orange and white paper with the letters “BIR” written in bold. This is simply a document that signifies an establishment has been granted the legal rights to operate their business. Usually the document is followed with a statement that asks customers to request for an OR every time a transaction is made. In this case you may be wondering why you should always ask for official receipts.
If you’re not really financially-savvy, you might think that these extra slips of paper are just clutter to you. However, it actually benefits you and the business in question, in many ways. Here’s why.
Keep a Complete Record of Expenses
A simple reason why you ask and keep your official receipts (ORs) is that they help you keep a complete record of your expenses.
When you’re budgeting, you want to make sure that every financial-related activity you make is accounted for.
For example, a monthly budget may provide you a reflection of how much you need to survive for that month. While manually logging in your expenses on a phone app is helpful, there are cases wherein you might forget to do this. By not discarding your receipts, you can constantly refer back to them, in case you forget to input an amount or a sum of money.
Proof of Purchase
An OR also serves as your proof of purchase when you buy merchandise, or avail of a service from a business. This is documented proof to both you and the business that a transaction was made on their products/services on a particular date, with a specific value attached to it.
Let’s say you want to return, or receive a refund for a damaged item. The store you bought the product from will need to ask you for a copy of the OR as proof that you did buy that product from that particular store. Without it, there’s a good chance that the business simply won’t just take your word for it.
Compliance With Regulations
As a taxpaying citizen of the country, it’s within your every right to request for an OR from a legitimate business. Apart from serving as the official proof of the sale, the OR also tells you that the business is complying with the regulations set forth by the Bureau of Internal Revenue (BIR).
When a business fails to give you a receipt, whether unknowingly or not, they will be slapped with a corresponding penalty by the BIR. Here’s a simple list of some penalties that you should be aware of:
- Failure to issue receipts or sales or commercial invoices — Php 10,000 for the First Offense, and Php 20,000 for the Second Offense.
- Refusal to issue receipts or sales or commercial invoices — Php 25,000 for the First Offense, and Php 50,000 for the Second Offense.
- Issuance of receipts that do not truly reflect and/or contain all the information required to be shown therein — Php 1,000 for the First Offense, and Php 2,500 for the Second Offense.
If you think a business or establishment is committing these shortcomings, go to the BIR website, then fill out and submit a complaint form on their eComplaint NO-OR homepage.
By now, you should already have some idea on why you should always ask for official receipts. A simple OR can already help you better manage your finances. It also serves as the official proof of purchase for products or services that were provided for you by a business, as well as the proof they’re operating within legal boundaries.
There are many other important things that you should know about ORs. Who better to teach you about them than from one of the most influential entrepreneurs in the Philippines? Benito Keh can provide you with invaluable advice on anything that you’ll need to know. Click here to get in touch with him!