BIR-required document evidencing the sale of goods. Required for every sale of goods regardless of whether payment has been received.
A Sales Invoice is the BIR-mandated document for the sale of goods in the Philippines. The critical distinction from many countries: in the Philippine tax system, the Sales Invoice is issued at the point of sale (when goods are delivered or transferred), not at the point of payment. If goods are sold on credit, the SI is issued when the goods are delivered; a separate Collection Receipt is issued when payment is received.
Like Official Receipts, Sales Invoices must be pre-printed by a BIR-accredited printer under an Authority to Print. The SI must show the seller's name, TIN, address, ATP number, SI number, date, buyer's details, itemized list of goods with quantities and unit prices, VAT amount (if applicable), and total amount.
In practice: Buhay Trading sells 200 bags of rice to a sari-sari store on credit for ₱18,000. Upon delivery, Buhay issues SI No. 0003291. Three weeks later when the sari-sari store pays, Buhay issues Collection Receipt No. CR-0001455 referencing the original SI.
Why it matters: Many Philippine SME owners confuse the SI with a delivery receipt or a collection receipt. The BIR expects an unbroken chain: SI → Collection Receipt (for credit sales) or SI → immediate payment (for cash sales, where the SI itself can serve as proof of payment when stamped "PAID"). Missing SIs for goods sold is a top BIR audit finding and can result in disallowed deductions for the buyer.
For VAT purposes, the buyer cannot claim input VAT unless they hold a valid VAT Sales Invoice from the seller. This makes accurate SI issuance critical for businesses in a VAT supply chain.