Document background
The Commercial Invoice And Tax Invoice is a fundamental business document required under Philippine law for documenting commercial transactions and ensuring tax compliance. It is mandated by the Bureau of Internal Revenue (BIR) through various regulations, including the National Internal Revenue Code and subsequent revenue regulations. This document is essential when goods or services are sold in a business transaction, particularly when the transaction is subject to Value Added Tax (VAT) or percentage tax. It must include specific information such as the TIN (Tax Identification Number), registered business name, and other details required by Philippine tax authorities. The document serves multiple purposes: it acts as proof of sale, supports tax reporting requirements, facilitates payment tracking, and helps maintain accurate business records. With the Philippines' move toward digital transformation, electronic versions of these invoices are becoming increasingly common, subject to specific BIR guidelines and requirements.
