QuestionsQuestions (BIR REVENUE REGULATIONS NO. 10-99)
It is promulgated pursuant to Section 244 in relation to Section 237 of the National Internal Revenue Code (NIRC), as amended by R.A. No. 8424.
Permits may be issued only to proprietors/owners/operators of enumerated lines of business such as supermarkets, department stores, drugstores, bookstores, groceries, bakeries, restaurants/bars/refreshment parlors/eating places, record bars and music stores, video shops, garages/parking spaces, gasoline stations, hotels/motels/lodging houses, token exchange stations, recreational/amusement centers, and other similar establishments; the Commissioner may qualify other lines in meritorious cases.
It must be filed with the Revenue District Officer within whose jurisdiction the business establishment is located. The application is a joint sworn declaration by the applicant and the distributor/dealer/vendor of the machine (Annex A).
For cash registers: name/address/business name/style/VAT or non-VAT of applicant; line of business and location; dealer/vendor name/VAT or non-VAT; brand/model/serial number and type of all parts (electronic/mechanical; resettable or not; accumulating grand total; new/secondhand); maximum accumulating sales capacity; reset counter number; and other essential features.
Required attachments include: (1) copy of current Annual Registration Fee Return (BIR Form 0605); (2) copies of certificate of registration of business name/style (and SEC for corporations/partnerships); (3) sample receipts for a 'no sale' transaction showing required details and consecutive receipt numbers/dates; (4) sample receipt showing accumulated grand total reading and, for electronic/POS machines, the reset counter number; (5) for resettable accumulating grand total machines, all proprietor's and reset keys or a copy of software/customizations for POS; and (6) operating manuals.
The application and attachments are filed with the LTD for inspection/evaluation by the assigned Revenue Officer, and final approval is by the LTD Division Chief.
The machine must be used exclusively for one line of business covered by the permit; if another line lacks permit coverage, sales must be covered by registered invoices/receipts. The machine must be equipped with two rollers (or equivalent): one for audit journal tape and one for customers’ tape, and sales punching must not occur without both tapes installed.
The machine must have a reset counter that advances by one each time the total is reset to zero. For registered machines with resettable accumulating grand totals, the machines shall not be reset except when expressly authorized by the Revenue District Officer.
They must always be connected to a power source and must not be used as reserve units (kept for future use) to protect memory mechanisms/circuits and preserve stored data.
The proprietor must not change business name, machine use, or transfer to another location/branch, nor repair/upgrade/modify/remove the machine without prior written notice to the proper BIR office. After repair/upgrade/change, a joint sworn statement must be submitted and the proprietor must apply for new inspection/evaluation before reuse.
Withdrawal by retirement or sale requires prior application and approval by the Regional Director or Revenue District Officer. The officer verifies the machine and accounting records to ensure sales data is recorded. Approval shows the reset counter number, accumulated grand total sales, and the number of the last cash register receipt issued (Annex D), and the permit is recalled for cancellation.
Receipts must show: proprietor’s business name; municipal/city address (and branch identification if applicable); proprietor’s VAT or non-VAT number; amount of transaction; and date of transaction. Use without this info is generally prohibited except for authorized temporary use pending tape heading installation for up to 30 days.
Any violation is sufficient ground for revocation of the permit to use cash register or POS machine. If the violation is equivalent to non-issuance of sales invoice/receipt or issuance of an unregistered receipt, it is dealt with in accordance with Section 264 of the NIRC of 1997.