CASH INVOICE DEFINITION SOFTWARE

Official receipt is issued by the seller to the buyer as written evidence on sale of services or leasing of properties, as well as acknowledgement on collection of cash payment on services rendered.

If you are a VAT registered taxpayer engaged in sales of services, you will need to issue the following: a. If the sale was paid on cash, the cash invoice is enough. If the sale was on credit, the seller will then issue an collection receipt upon receipt of cash as payment from the buyer. Note: When the taxpayer is engaged in sale of goods or properties, it will need to issue a sales invoice when the goods is sold to the buyer, whether cash or on credit.

When you issue a collection receipt, indicate the sales invoice number to which the collection pertains to.

Collection receipt is issued by the seller to the buyer as acknowledgement on receipt of cash and/or payment of goods sold.

It will also be the basis of the output tax liability of the seller and the input tax claim of the buyer.

Sales invoice list down the details of the items or goods sold.Sales invoice is issued by the seller to the buyer as written evidence on sale of goods or properties in an ordinary course of business, whether cash or on account (credit).If you are a VAT registered taxpayer engaged in sale of goods or properties, you will need to issue the following: a. The first one is for VAT Taxpayers and the second one is for Non-VAT Taxpayers. Sale of services or lease of propertiesįor better understanding, we divided this article into two (2) sections.

Once you understand the difference between VAT and Non-VAT, the next step is to know the type of transaction that your business is engaged to, such as: To learn the difference between VAT and Non-VAT, you may read this article Difference Between VAT and Non-VAT. Check it out VAT vs Non-VATīefore we discuss the difference between a sales invoice and an official receipt, let’s first understand the two (2) types of taxpayers: (1) VAT and (2) Non-VAT. You can also use this tool for your taxes to save time and so you can focus on more important things.

CASH INVOICE DEFINITION SOFTWARE

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Cash invoice definition