In this edition of Ask the Expert, financial planner Henry Ong explains to us the need to issue receipts even when joining bazaars and what to do if you are not operating a registered business
Q: If I join a bazaar this Christmas season, am I supposed to issue official receipts even if my business only operates during the course of the bazaar, which is about three days?
A: Technically, yes. Per BIR rule, for every item you sell, you are supposed to issue official receipt. But for you to be able to issue receipt, you need to be a registered company with the BIR.
The assumption is that when you are in business, you have already a company operating and you just happen to be in the bazaar for three days. The next question is what if you don’t have a company yet and you are just doing this as part time and joining the bazaar for three days is your only venture, your option is to approach companies to issue official receipts for you. [See four hottest and hippest bazaars in town here]
They can be your friend, associate or relatives. You can just pay them a percentage of your sales for using their OR. The other option is to ask bazaar organizers to issue OR on your behalf and you just pay them fixed fee per transaction.
Henry Ong, CMC, CMA, is president and COO of Business Sense (www.businesssense.com.ph ), a business advisory firm that provides expert solutions to small and medium sized companies. You may reach him at email@example.com or post your Money Matters question here.