During a sale of goods or services, a buyer and a seller enter into an agreement to transact business and complete a financial transaction. The agreement can be documented with a receipt. A receipt is documentation that payment has been made to finalize a sale or that something has been received, especially in return situations in which goods are defective. It serves as proof of ownership in most cases. A receipt can be in the form of a tax invoice, or a printed cash register or hand written receipt. The Ethiopian Revenues and Customs Authority (ERCA) is the body responsible for collecting revenue from customs duties and domestic taxes from the tax payers. The ERCA shall have the powers and duties to establish and implement modern revenue assessment and collection system; one of the methods that ERCA uses to collect the revenue is by using receipt. The tax payers have an obligation to use receipt. According to part four - of the federal tax administration Proclamation No. 983/2016, the tax payers have the following obligations:
1/ A taxpayer that has the obligation to maintain books of account shall register with the Authority the type and quantity of receipts before having such receipts printed.
2/ Any person operating a printing press engaged by a taxpayer to print receipts shall ensure that the type and quantity of receipts are registered with the Authority before printing the receipts.
3/ Any taxpayer that has an obligation to maintain books of account shall issue a receipt for any transaction.
4/ The Authority shall issue directives for the implementation of this Article.
The proclamation also included taxpayers’ punishments when they break the tax law ofThe Ethiopian Revenues and Customs Authority. For instance, in proclamationNo. 609/2008 article--, Failure to use VAT Invoice: 1/ Any person who is registered for VAT commits an offence if carries out transactions without VAT invoice and shall, upon conviction, be punished with a fine of not less than Birr 10,000 and not more than Birr 100,000 and imprisonment for a term of not less than two years and not more than five years. 2/ Where the tax payable on the basis of the amount shown on the illegal invoice referred to in sub article (1) of this Article is in excess of the Birr 100,000 the fine shall be equal to the tax amount. In addition,in ProclamationNo. 609/2008 article—50, un authorized use or print of receipt any person commits an offence if uses unauthorized computer generated or printed receipts or provides the service of printing unauthorized receipts and shall, upon conviction, be punished with a fine of not less than Birr 10,000 and not more than Birr 100,000 and imprisonment for a term of not less than two years and not more than five years.
In general, a receipt is a written acknowledgment that a specified payment has been received. A receipt records the sale of goods or provision of a service. If the recipient of the payment is required to collect a tax from the customer, the amount a tax collected would also be included on the receipt and the amount would be deemed to have been collected by ERCA or tax authority. A receipt lists goods or services, prices, taxes, total amount paid and method of payment and soon. It generally includes information about buyers and sellers, in different formats and to varying degrees. When you buy something, you should ask a receipt. Receipts will help you to prove the ownership of the goods. Specifically, the receipt would provide taxpayers with detailed information regarding their tax payments. Therefore “Do not pay if a receipt is not issued.”