The Marcos administration is looking to require small farmers and fishermen to issue receipts and invoices or keep a record of their sales for 10 years.
The BIR will be conducting a public hearing on the proposed revenue regulation for small-scale agricultural producers in the BIR National Training Center Auditorium on August 14, 2023 that will require farmers and fishermen and other small scale agricultural producers to register with the tax authorities. They will also be required to register their simplified sales book with the BIR.
Small scale agricultural producers refer to suppliers, producers, sellers, contract growers, and millers of agricultural food products whose annual gross sales or receipts do not exceed P1 million.
Among the products that the BIR will be looking at are crops such as corn, coconut, coffee, livestock, poultry, marine products, and salt without iodine. Even agricultural food products that have undergone simple processes such as freezing, drying, salting, smoking, and roasting are included.
According to the draft revenue regulation, small farmers and fishermen should have been issuing receipts or invoices for sales worth P100 or more. In compliance with the ease of doing business, the BIR will be exempting small scale agricultural producers from the issuance of receipts or invoices if they record the transactions in a simplified sales book.
The date of the transaction, description of the goods sold, the registered name and address and the TIN of the buyer must be recorded in the book including the amount of sales and the amount withheld.
The exemption from the issuance of the receipts or invoices will only apply to those whose gross sales do not exceed P1 million. Those whose sales exceed P1 million must issue official receipts and invoices for transactions worth P100 or more.
