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Tax Tips February 28, 2026 · 5 min read
OR vs SI: The Difference Every Small Business Owner Should Know
Official Receipts and Sales Invoices look similar but serve different purposes — and using the wrong one can trigger BIR penalties.
Many new business owners use “OR” and “SI” interchangeably. They shouldn’t.
An Official Receipt (OR) is issued for the sale of services or lease of property. A Sales Invoice (SI) is issued for the sale of goods.
Using the wrong one isn’t just paperwork — it’s a BIR compliance issue that can come up in an audit.
A simple rule of thumb
If a client is paying for your time or expertise → OR. If they’re paying for a physical product → SI. Mixed transactions sometimes require both.
If your business does both, register for both during your BIR setup. Trying to add one mid-year is more painful than adding it upfront.