Freelancers with foreign clients often get confused about receipts. Many ask: is it ok to indicate dollar or needs to be peso on a receipt? This matters because receipts are legal tax documents. If the amount is written incorrectly, your books may be questioned, or your tax filing may be delayed. Understanding the correct format helps you stay compliant and confident.
Can You Put Dollars on a Receipt?
The short answer: No.
BIR requires all receipts issued in the Philippines to show amounts in Philippine Peso (PHP). Even if your client pays in USD, AUD, GBP, or EUR, your official receipt must still reflect the value in pesos.
Foreign currency can only appear as a reference, not the main amount.
Why This Rule Matters for Freelancers
Freelancers earn from global clients. But BIR rules are strict when it comes to currency. Using peso on receipts ensures:
- Correct tax computation
- Proper record-keeping
- Clear audit trails
- Accurate quarterly and annual filings
If your receipt only shows USD and not PHP, the BIR may reject it as an official document.
The Correct Way to Issue Receipts When Paid in USD
Here’s the proper way to do it:
1. Determine the Peso Conversion
Convert the dollar payment to pesos using:
- The exchange rate on the day you received the payment
- Preferably the rate used by your payment platform (PayPal, Payoneer, Wise, GCash)
Keep a screenshot of the conversion rate as proof.
2. Write the Amount in Peso on the Receipt
On the official receipt, write the peso-equivalent as the main amount.
Example:
“₱28,500.00”
3. Add a Note About the Dollar Payment (Optional but Helpful)
Below the amount, you may add:
“Equivalent to USD $500 based on exchange rate on [date].”
This is allowed as long as the main amount is in PHP.
4. Record the Peso Amount in Your Books
Your books of accounts must reflect the peso total, not the foreign currency amount.
5. Attach Proof of Payment
Save screenshots of:
- Payment received
- Conversion rate
- Transaction ID
This helps during audits or reconciliations.
When and Who Must Follow This Rule?
This BIR rule applies to:
- Freelancers
- Virtual assistants
- Social media managers
- Developers
- Designers
- Consultants
- Anyone issuing receipts inside the Philippines
You must follow this rule every time you issue an official receipt, regardless of the currency your client uses.
Tips for Freelancers
- Always use peso in your receipts to comply with BIR.
- Save exchange rate screenshots for transparency.
- Use platforms that show clear conversion rates to avoid confusion.
- Create a standard template showing PHP amount + USD equivalent.
- Issue the receipt immediately after payment to avoid rate changes.
These habits make tax filing easier and safer.
So, is it ok to indicate dollar or needs to be peso on a receipt?
The main amount must always be in peso, because BIR only recognizes PHP as the official currency for tax documents. You may add the dollar amount as a note, but the receipt must still reflect the peso value clearly.
Following this rule protects your compliance, ensures accurate taxes, and supports your freelancing credibility.
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