BIR’s new regulation on the contents of CRM/POS invoices and receipts

ronald s cuberoWITH respect to the contents of invoices and receipts, recall that the Bureau of Internal Revenue (BIR) issued Revenue Memorandum Order (RMO) 12-2013 on May 2, 2013, which laid down the required information to be indicated on the invoices and receipts. This RMO, however, expressly excluded the taxpayers that use receipts/invoices issued through cash-register machines/point-of-sales (CRM/POS) machines and computerized accounting system. Such RMO says that CRM/POS machines are regulated in separate revenue issuances.

On July 21, 2014, the BIR this time issued RMO 27-2014, prescribing the policies and procedures in the accreditation of CRM, POS and other sales machines. In this RMO, the data required to be reflected on the tape receipt or invoice include (1) business name; (2) registered taxpayer’s name with BIR; (3) taxpayers identification number (TIN); (4) address where the machine will be used; (5) receipt/invoice number; (6) machine model accreditation number; (7) date of transaction; (8) quantity; (9) product description; (10) amount of transaction; and (11) the phrase “This serves as an official receipt.”

On the above data and information required to be printed on the receipts and invoices, many value- added tax (VAT) registered taxpayers have noticed that there appears no name, address and TIN of the buyer listed therein. As a result, these taxpayers are in limbo where they will indicate such information in compliance with the VAT invoicing and accounting requirements.

As we all know, such information is vital to a VAT-registered person insofar as their substantiation of input taxes is concerned. Absence of those will result to denial of the related input tax.

In order to address the above pressing concerns of many taxpayers, the BIR recently issued Revenue Regulations (RR) 10-2015, dated September 21, 2015. In this RR, in addition to the directive to use non-thermal paper, it provides information that shall now appear on the receipts/invoices generated from CRM/POS/other similar machines.

The information that shall now be indicated on the receipts for sales of services or invoices for sales of goods generated from CRM/POS/other similar machines includes (1) taxpayer’s registered name; (2) TP’s business name/style; (3) a statement that the taxpayer is VAT- or non-VAT-registered, followed by the TIN and 4-digit branch code; (4) machine identification number; (5) detailed business address where such receipts/invoices shall be used; (6) date of transaction; (7) serial number of the receipts/invoices printed prominently; (8) a space provided for the name, address and TIN of the buyer; (9) description of the items/goods or nature of service;  (10) quantity; (11) unit cost; (12) total cost; (13) VAT amount; (14) breakdown of VATable sales, VAT amount, zero rated sales, and VAT- exempt sales if engaged in mixed transactions; (15) The phrase “This document is not valid for claim of input tax” in bold letters shall be conspicuously printed at the bottom of the non-VAT receipts/invoices; (16) the word “exempt” shall be indicated prominently at the face of the non-VAT principal receipts/invoices whose transactions are not subject to VAT or percentage tax; and (17) the breakdown of sales subject to percentage tax  and exempt sales on the non-VAT principal receipts/invoices if the taxpayer is subject to percentage tax under Title V of the NIRC, but also sells goods/services under Section 109 (A) to (W), excluding (E) of the same Code.

Similar to RMO 12-2013 relative to manually issued receipts, this RR also requires at the bottom portion of the CRM/POS receipts/invoices the (1) name, address and TIN of the accredited supplier of CRM/POS/other similar machines; (2) accreditation number and the date of accreditation of the accredited supplier; (3) BIR final permit to use number; and (4) The phrase “This invoice/receipt shall be valid for five years from the date of the permit to use.”

Moreover, a space shall be provided for (1) senior citizen/PWD TIN; (2) OSCA ID/PWD ID; (3) Senior citizen discount/PWD discount (show detailed breakdown of 20- percent discount and/or 12-percent VAT exempt); and (4) signature of the senior citizen/PWD.

For those taxpayers, however, whose transactions are not covered by Expanded Senior Citizens Act of 2010, the above information may no longer be indicated.

In sum, as can be gleaned from the above-listed information, it is crystal clear that a space for the name, address and TIN of the buyer in the receipts/invoices of CRM/POS is now required, which answers the lingering question of many VAT-registered taxpayers.  And the mix-up mystification of many taxpayers—whether the information required under manually issued receipts is also applicable for CRM/POS receipts and invoices—is now settled, because the information required under the manually issued receipts under RMO 12-2013 was substantially adopted also
under this RR.

Ergo, with this recent issuance of the BIR, the story of confusion regarding the content of the CRM/POS invoices and receipts is now finally settled.

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The author is a junior associate of Du-Baladad and Associates Law Offices (BDB Law), a member-firm of World Tax Services (WTS) Alliance.

The article is for general information only and is not intended, nor should be construed as a substitute for tax, legal or financial advice on any specific matter. Applicability of this article to any actual or particular tax or legal issue should be supported therefore by a professional study or advice.  If you have any comments or questions concerning the article, you may e-mail the author at [email protected] or call 403-2001, local 350.

 

 

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