Question & AnswerQ&A (BIR REGULATIONS NO. 11-2004)
The regulations aim to simplify accreditation, registration, and control of CRMs and POS machines, reduce administrative burdens on taxpayers, ensure reliable tax payment data, and promote efficient supervision by the Bureau of Internal Revenue.
The regulations cover all business machines used in recording sales transactions, including Cash Register Machines (CRMs), Point-of-Sale (POS) machines, taximeters, and handheld or mobile devices.
A CRM is a machine with a memory that records sales or service transactions as a replacement for registered sales invoices or official receipts, using firmware installed on an EPROM chip.
They must have a non-resettable accumulating grand total, be tamper-free without training or no-sale modes, generate reports on daily sales and grand total, have non-volatile memory or recovery system, reflect sales discounts or refunds, and separate VAT and Non-VAT sales clearly.
Only machines that are accredited and registered as compliant can be issued a "Permit to Use" and used for generating official invoices or receipts. Non-compliant machines found in use may be subject to seizure.
Receipts must show business name, registered taxpayer's name, TIN including branch code, machine address, receipt number, machine accreditation number, transaction date, quantity, product description, amount, separate VAT and Non-VAT totals, and the phrase "THIS SERVES AS AN OFFICIAL RECEIPT."
Businesses using CRM/POS machines are exempt from showing purchaser's name, business style, address, and TIN unless the purchaser is VAT-registered and requests a manual preprinted receipt with approved Authority to Print; otherwise, input tax claims may be disallowed.
The Bureau of Internal Revenue through the National Office CRM/POS Machine Accreditation Board (NMAB) for Large Taxpayers, or the Regional Office MAB (RMAB) for other taxpayers, is responsible for accrediting machines.
Suppliers must register the machine within five days from the sale date, disclosing buyer's TIN, VAT or non-VAT status, machine serial number, brand, model, and present reading and date. Registration can be done manually or electronically.
Users must maintain sales books for each machine, ensure operation with all tapes installed, keep legible records, notify the BIR prior to machine repairs or relocation, secure prior written approval for POS use, and keep sequence integrity of receipts. Machines must not be switched to modes avoiding sale recording.
The BIR reserves the right to inspect machines anytime during store hours to verify compliance with regulations, correctness of recorded data, and conditions of machine use.
Revocation of accreditation occurs upon violations of compliance and subjects the distributor/dealer/vendor to appropriate sanctions under internal revenue laws and regulations.
Yes. They must issue duly registered sales invoices or receipts for actual sales, notify the distributor/vendor and BIR, and display a warning poster indicating the machine is not authorized to issue receipts.
Prior application and approval must be obtained from the appropriate BIR office; the machine and accounting records will be verified, and the Permit to Use must be submitted for cancellation.
They must submit quarterly a Summary List of Machines Sold electronically, including accreditation-registration numbers, permit numbers, machine details, sale and registration dates, buyer's TIN, business info, present reading, and software customizations if applicable.