Question & AnswerQ&A (REVENUE REGULATION NO. 16-2018)
The primary purpose of Revenue Regulation No. 16-2018 is to amend certain provisions of RR No. 10-2015 and its subsequent amendments regarding the use of non-thermal paper for all Cash Register Machines (CRMs), Point of Sales (POS) machines, and other invoice/receipt generating machines or software.
RR No. 16-2018 is promulgated pursuant to Section 244, in relation to Sections 203, 222 and 235 of the National Internal Revenue Code of 1997, as amended.
Taxpayers using CRM/POS machines or similar devices have the option to use the type of paper according to their business requirements, provided they retain and preserve accounting records for the period required under the law.
These documents must conspicuously display the phrase 'THIS DOCUMENT IS NOT VALID FOR CLAIM OF INPUT TAX' in bold letters at the bottom.
Non-VAT principal receipts/invoices must prominently indicate the word 'EXEMPT' on their face if the transactions are not subject to VAT or percentage tax.
The bottom must show the name, address and TIN of the accredited supplier of CRM/POS machines or software, accreditation number and validity dates, BIR Final Permit to Use number, and the phrase 'THIS INVOICE/RECEIPT SHALL BE VALID FOR FIVE (5) YEARS FROM THE DATE OF THE PERMIT TO USE.'
For transactions with Senior Citizens and PWDs, the receipt or invoice must include spaces for Senior Citizen/PWD TIN, OSCA or PWD ID numbers, a detailed breakdown of discounts or VAT exemptions received, and the signature of the senior citizen or PWD.
The seller must issue a manual receipt or invoice replacing the tape receipt. The sales reported in the eSALES system must be adjusted by deducting the sales that correspond to the replaced tape receipts, with the returned tape receipt attached to the duplicate manual copy to support the adjustment.
Any person who fails to comply with the provisions of these regulations shall be subject to penalties in accordance with existing revenue issuances.
The regulation took effect fifteen (15) days after its publication in a newspaper of general circulation.