Question & AnswerQ&A (BIR REVENUE REGULATIONS NO. 10-99)
The Regulations govern the procedures for granting permits to use cash register and POS machines in lieu of registered sales invoices or receipts, pursuant to Sections 237 and 244 of the National Internal Revenue Code, as amended by R.A. No. 8424.
Proprietors, owners or operators of certain lines of business such as supermarkets, department stores, drugstores, bookstores, groceries, bakeries, restaurants, bars, music stores, garages, gasoline stations, hotels, motels, lodging houses, token exchange stations, and recreational centers, among others, and other similar establishments may apply.
The application must be filed with the Revenue District Officer within whose jurisdiction the business establishment is located. For businesses under the Large Taxpayers Division (LTD), the application is filed with the LTD, and for businesses located in the city/municipality where the Regional Office is, the permit shall be issued by the Regional Director or the delegated Revenue District Officer.
The application must include a copy of the applicant's Annual Registration Fee Return (BIR Form No. 0605), certificates of registration with the BIR and other agencies, sample 'no sale' receipts, sample receipts showing accumulated grand total and reset counter numbers, proprietor's and reset keys for machines with resettable accumulating totals, software copies for POS machines, and operating manuals.
Conditions include exclusive use of the machine for one business line, equipment with two rollers for audit and customer receipts, automatic printing of sales amounts, presence of a reset counter, legible tapes, power connection for electronic machines, surrender of keys, restrictions on resetting and transfers, proper approval for repairs and withdrawal, visible attachment of original permit on the machine, and compliance with receipt data requirements.
At the end of each day, entries in the audit journal tape shall be summarized and transferred to the Cash Register Sales Book. The total sales from all registered machines shall then be entered in the Cash Receipts Book or Columnar Journal by noon of the next business day, with a special column distinguishing sales through cash register or POS machines.
Yes, provided the proprietor notifies the Revenue District Officer, secures and displays a warning poster stating the machine is not authorized to issue receipts, and duly registered sales invoices or receipts are issued for every sale. Machines without receipt dispensing mechanisms may be used without complying with these additional requirements.
Yes, persons authorized to use cash register machines are exempted from showing the name, business style and address of the purchaser and taxpayer identification number on the receipt, even if the purchaser is a VAT-registered person. The purchaser may still require a registered sales invoice or official receipt.
Violations can lead to revocation of the permit to use cash register or POS machines. If the violation involves non-issuance of sales invoices or receipts or issuance of unregistered receipts, the sanctions under Section 264 of the National Internal Revenue Code of 1997 apply.