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Ease of Paying Taxes Act frees businesses from receipts under P499

With the enactment of the Ease of Paying Taxes Act into law, businesses are no longer required to issue receipts for purchases worth P499 and below.

Recognized as a priority bill, Repubic Act 11976 aims to streamline processes within the tax system to boost compliance. Apart from elevating the mandatory receipt threshold, the measure facilitates the electronic payment of internal revenue taxes, allowing taxpayers to bypass city or municipal treasurers.

Furthermore, the law introduces harmonized Value Added Tax (VAT) rules for the sale of goods and services, incorporating an invoice system designed to expedite VAT refunds. This system categorizes VAT refunds as low, medium, or high-risk, considering factors such as refund claim value, taxpayer compliance history, and the frequency of filing claims.

To ensure expeditious processing, the legislation imposes a strict 180-day deadline on the Bureau of Internal Revenue for handling general refund claims related to erroneously or illegally collected taxes.

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