BIR-required document issued by a seller for every payment received for services rendered or sale of goods. Numbered sequentially under an Authority to Print.
An Official Receipt is the primary proof of a business transaction for service-based businesses in the Philippines. Unlike in many other countries, the BIR mandates that every OR be pre-printed by a BIR-accredited printer under an Authority to Print (ATP) and carry a specific number series assigned to your business. Electronic ORs (e-ORs) are also accepted if issued through a BIR-approved system.
For service businesses, the OR is issued upon receipt of payment. For mixed businesses (selling both goods and services), the rule of thumb is: goods → Sales Invoice, services → Official Receipt. The OR must include the seller's registered name, TIN, address, ATP number, OR number, date, description of the service, amount, and whether it is VAT-inclusive or VAT-exempt.
In practice: Liwanag Salon in Manila charges ₱800 for a haircut and color service. Upon payment, the salon issues OR No. 0001745 which shows ₱714.29 as the service amount and ₱85.71 as 12% VAT — total ₱800.00. This OR is the client's proof of payment and the salon's record of a VATable transaction.
Why it matters: ORs are the backbone of BIR compliance for service businesses. Failure to issue ORs is one of the most common BIR violations flagged during Tax Compliance Verification Drives. Penalties range from closure orders (5-day "oplan kandado") to criminal prosecution for willful failure to issue receipts. Your clients also need your ORs to claim expense deductions.
Starting in 2024, the BIR has been accelerating the transition to e-invoicing for large taxpayers. SMEs should monitor BIR Revenue Regulations for their mandatory e-receipt adoption dates.