Filipinos who love to shop and are frequently found in groceries and shopping malls will have noticed a ubiquitous fixture called the cash register machine (CRM). A CRM is a machine that has a memory that can record a sale of merchandise or services rendered, in lieu of a registered sales invoice or official receipt. An improvement from the CRM are point-of-sale (POS) machines which are not only capable of performing the basic functions of a CRM, but can also record and track customer orders, process and debit credit card accounts, link to other systems in the establishment’s network, and manage inventory (Revenue Regulations No. 11-04). Typically, a CRM/POS machine generates official receipts (ORs) or sales invoices (SIs) which are required by the Bureau of Internal Revenue (BIR) to indicate the seller’s registered name/business name/style; a statement whether he is value-added tax (VAT) or non-VAT registered; taxpayer identification number (TIN); detailed business address; and date of transaction among other information.

Particularly, a common type of paper used by the CRM/POS machines for issuing ORs/SIs is generally called “thermal receipt paper”, a special kind of paper coated with a chemical that changes color when exposed to heat. Thermal paper is found in most CRM/POS machines, as well as credit card terminals due to the fact that it is inexpensive and provides a much faster rate of printing. However, there is a downside to the convenience it offers: thermal paper receipts are notorious for fading easily, are sensitive to heat, and thus require a proper way for them to be stored.

business address; and date of transaction among other information. Particularly, a common type of paper used by the CRM/POS machines for issuing ORs/SIs is generally called “thermal receipt paper”, a special kind of paper coated with a chemical that changes color when exposed to heat. Thermal paper is found in most CRM/POS machines, as well as credit card terminals due to the fact that it is inexpensive and provides a much faster rate of printing. However, there is a downside to the convenience it offers: thermal paper receipts are notorious for fading easily, are sensitive to heat, and thus require a proper way for them to be stored. This is one of the reasons why in 2015 the Department of Finance (DOF) and the BIR required all new business registrants with CRM/POS machines with built-in printers to only use non-thermal paper for their transactions. As for businesses with existing CRM/POS machines, the BIR provided for a tiered schedule to allow concerned taxpayers to meet compliance requirements over a three (3) year-period.

Fast-forward to 2018 (the end of the 3-year period to comply), and it seems that the DOF/BIR have done some serious back-pedaling by issuing RR No. 16-2018, which now gives taxpayers the option to choose whatever paper for their CRM/POS or other invoice/receipt generating machines, depending on their business requirements. This is of course subject to the retention and preservation periods of accounting records required under the Tax Code, as amended.

In addition to the usual required information to be indicated by the ORs/Sls as discussed above, the regulation requires the serial number of the CRM/POS machine to be shown as well. Buyers who are in need of a manual invoice or receipt to be able to claim for an expense (for income tax purposes) or input tax (for VAT purposes), may return the issued tape receipt and request for a manual invoice or receipt from the seller. The returned tape receipt shall be attached to the duplicate copy of the manually issued invoice or receipt and shall be the basis in adjusting the seller’s amount of sales. The amount of the sale for which a manual invoice or receipt was issued shall still be included in the Summary List of Sales (SLS) required to be submitted by VAT registered taxpayers to the BIR.

Manila Times Source

ATTY. PEACHES ARANAS

Managing Partner LMA LAW