With the onset of the Christmas season that is expected to give
business brisk sales, Revenue Commissioner Kim S. Jacinto-Henares
advised ‘tiangge’ (privilege store) operators nationwide to register
their business and issue invoice to customers for their respective
purchases. Henares told revenue regional directors and revenue district officers
(RDOs) nationwide during a closed-door conference that they will be held
responsible for tolerating the presence of colorum “tiangge” business
in their respective jurisdictions.
She said she will conduct surprise visits to “tiangge” centers in Metro Manila and elsewhere to verify compliance.
She reminded field tax officials of Revenue Regulations No. 16-2013
issued last year imposing new rules and taxation on “tiangge”
operations.
The guidelines state that “privilege stores refers to an outlet which
is not permanently fixed to the ground and normally set up in public
places like streets, parks, subdivisions, shopping malls and public
buildings for the purpose of selling a variety of goods and services for
short durations or during special events including festivals.”
These stores should operate for not more than 15 days, otherwise it
will be classiffied as regular business subject to existing laws and
regulations.
Aside from registration and issuance of invoices, “tiangge” operators
are also required to post in their stalls certificate of registration
and deduct and withhold expanded withholding tax on rent payments to the
lessor of real property.
They are also required to keep books of accounts, use cash register,
or point of sale machines or provide its own official receipts for
services or invoices for goods.
Under the Tax Code, the administrative sanction for non-issuance of
receipts or invoices start from P10,000 for first offense, P20,000 for
the second violation and closure of the business for third offense.
If the offender is charged in court and found guilty, he will pay a
fine of up to P50,000 and face a jail term from two to four years.
