For businesses in the Philippines, staying compliant with the Bureau of Internal Revenue (BIR) requirements is crucial. One of these compliance obligations is the submission of Relief Purchases reports, which are part of the Summary List of Purchases (SLP) under the BIR’s RELIEF (Reconciliation of Listings for Enforcement) System.
In this guide, we’ll break down the step-by-step process of filing Relief Purchases in your BIR reports, common mistakes to avoid, and best practices to stay compliant.
What Are Relief Purchases?
Relief Purchases refer to the list of all purchase transactions made by a VAT-registered taxpayer within a given reporting period. These purchases are submitted electronically through the BIR RELIEF System.
Why it matters:
- Ensures VAT transparency between buyers and suppliers.
- Helps the BIR cross-match sales and purchases.
- Avoids possible penalties for underreporting or non-compliance.
Who Needs to File Relief Purchases?
Businesses that are:
- VAT-registered under the BIR.
- Required to submit the Summary List of Purchases (SLP).
- Engaged in transactions subject to VAT.
👉 If your business is non-VAT registered, you generally don’t need to file Relief Purchases.
Step-by-Step: Filing Relief Purchases in Your BIR Reports
Step 1: Gather All Purchase Records
- Collect VAT receipts and invoices from suppliers.
- Make sure invoices include valid TINs, business names, and VAT amounts.
- Check that your suppliers are VAT-registered to claim input tax.
Step 2: Organize Your Data in the Required Format
The BIR requires specific data for Relief Purchases:
- Supplier Name
- TIN (Taxpayer Identification Number)
- Address
- Gross Purchase Amount
- VAT Amount
- Invoice Number / OR Number
💡 Tip: Use accounting software or spreadsheets to keep data accurate.
Step 3: Install and Open the BIR Relief System
- Download the RELIEF System from the BIR website.
- Install it on your computer.
- Open the program and select Summary List of Purchases (SLP).
Step 4: Encode the Purchase Data
- Input each supplier’s information and corresponding amounts.
- Double-check details (wrong TINs or invoice numbers often cause rejections).
Step 5: Generate the Data File (.DAT)
- Once complete, generate the .DAT file from the Relief System.
- This is the file you will submit to the BIR.
Step 6: Submit to the BIR via eSubmission or CD
Depending on your Revenue District Office (RDO) requirements:
- Upload through BIR eSubmission portal, OR
- Save the .DAT file on CD/USB and submit manually.
Step 7: Keep Proof of Submission
- Secure the BIR confirmation email (if electronic).
- Keep a stamped receiving copy if submitted manually.
- Retain digital files for at least 3 years.
Common Mistakes to Avoid
❌ Incorrect TINs of suppliers
❌ Missing VAT invoices/receipts
❌ Forgetting to submit on time (usually every quarter)
❌ Encoding wrong VAT amounts
Best Practices for Smooth Relief Purchases Filing
- Use accounting software to track purchases and VAT automatically.
- Reconcile purchases with supplier sales to avoid discrepancies.
- Always file before the deadline to avoid penalties.
Penalties for Non-Compliance
The BIR may impose:
₱1,000 per failed filing (up to ₱25,000 annually).
Audit risks for inaccurate or late submissions.
Conclusion
Filing Relief Purchases in your BIR reports may seem tedious, but with proper preparation and accurate records, it becomes manageable. By following the step-by-step process outlined above, your business stays compliant, avoids penalties, and ensures smooth VAT reporting.
Remember: compliance is not just about avoiding penalties—it’s about building credibility for your business.