Simple definition: An acknowledgment receipt is a written record used as proof that cash, product, or service has been properly received. This is usually prepared by the seller and is used by delivery people for assurance that the items have been received by the buyer or that cash payment has been turned over from the buyer.
Upon reading until the end, you will acquire essential information about the general meaning of acknowledgment receipts and if they are important to small businesses in the Philippines, according to the regulations of the Bureau of Internal Revenue (BIR). You will also be provided with acknowledgment receipt samples and details on how to use them so you will be on the go anytime.
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Pursuant to the BIR Tax Code, in order to claim tax credits, registered businesses in the Philippines are required to submit sales invoices and official receipts. Revenue Regulations No. 18-2012 classify these documents into two main categories:
The supplementary receipts/ invoices, which include the acknowledgment receipts, however, cannot be used for official tax declaration, but are still subject to registration to BIR. Thus, before the acquisition of hard copies of the supplementary receipts, businesses still need to secure the Authority to Print (ATP) and can only have their documents printed by accredited printers.
To assist you with your sales invoicing needs, you can access our step-by-step guide here (What is a Sales Invoice | Download Templates | For Businesses in the Philippines). To answer your questions about official receipts, access this article (What is an Official Receipt | BIR Regulations | Definition, Purpose, and Elements).
However, with the amendments created by the TRAIN (Tax Reform for Acceleration and Inclusion) Law in 2017, there has been a mention of online invoicing.
In line with the digital transformation strategy of the Department of Information and Communication Technology, the TRAIN Law demands that by 2023, it is necessary for businesses in the Philippines to submit online invoices or e-invoices. If you are new to the concept, we have an in-depth explainer here (How to Create Invoices | Complete Guide for Businesses in the Philippines).
To know more about the effects of the TRAIN Law on small businesses in the Philippines, we got you covered here (TRAIN Law | Everything Small Businesses Should Know).
Now that you know which documents are required, it’s now time to know the differences among these three documents. Let’s get to know them as we take a look at the processes involved in a sales transaction.
After knowing the meaning of acknowledgment receipts, are you now ready to make your own? Check our free acknowledgment receipt samples below.
Download Our Free Proforma Invoice Templates
Acknowledgment Receipt Sample: How to Use
After downloading our free sample, you may be wondering which details you should include in your acknowledgment receipt of payment.
Do you have specific information about your business that you need to include in your acknowledgment receipt? Worry no more because Kernel Tools is here to help.
For expert assistance in all things related to invoicing, acknowledgment receipts, official receipts, and other accounting documents, Kernel Tools is your go-to friend. Create an account now and together, we will make invoicing a breeze. Here’s our registration guide (How to Create and Manage Invoices with Kernel Tools). )