QuestionsQuestions (BIR REGULATIONS NO. 11-2004)
It aims to refocus and simplify the CRM/POS registration/accreditation process to reduce taxpayer burden and BIR administrative costs, while ensuring effective supervision/control and speedy collation of accurate transaction data.
All business machines used to record sales transactions, including Cash Register Machines (CRMs), Point-of-Sale (POS) machines, taximeters, and handheld/mobile devices.
A CRM is a machine with memory that records sales/transfer of merchandise or services in lieu of a registered sales invoice/official receipt, using firmware in non-volatile memory (e.g., EPROM). A POS is a computerized replacement for a CRM, usually more complex, capable of recording/tracking orders, processing debit/credit cards, linking to other systems, and managing inventory.
When: (1) the model is among those already accredited by the BIR; (2) the supplier has registered the machine with the Bureau on behalf of the user; and (3) if not previously accredited but compliant with required specifications, the owner/manager may personally register it under the rules and obtain a provisional authority.
The BIR reserves the right to inspect/verify any registered machine anytime during store hours to confirm compliance and accuracy of generated data; store personnel must present the machine for inspection.
It may be considered subject to seizure.
Among others: (1) non-resettable accumulating grand total with required digit capacity and advance approval of next grand total; (2) CRM reset counter / POS unique sequential transaction numbering; (3) tamper-free (no training mode/no-sale mode/manipulations avoiding sale recording); (4) ability to generate reports of daily sales and accumulated grand total; (5) non-volatile memory or recovery/back-up system; (6) storage/recording of sales discounts/refunds; and (7) separate indication/reporting of VAT and Non-VAT items where applicable.
“THIS IS NOT AN OFFICIAL RECEIPT.” It is required to prevent the use of certain modes that would otherwise avoid proper recording/receipt compliance, and serves as a qualifier when manipulations are permitted.
CRMs must have two rollers/tape equivalents: one for audit journal tape and one for customers’ tape, with itemized consecutively numbered receipts; a safety mechanism preventing operation if only one roller is used; and automatic printing of discounts/refunds on both customer and audit tapes.
All sales per POS must be automatically and completely recorded in the central server, with data preserved for the assessment/collection period under the NIRC; and the supplier must attest that the BIR can view/validate/verify submitted sales/receipt summaries, including controls to identify voided sales and unrecorded sales.
Receipts must show business name; registered taxpayer name with BIR; TIN (12 digits incl. branch code); address where machine is used; receipt/invoice number (min 6 digits); machine model accreditation number; transaction date; quantity; product description; amount (separate totals for VAT and Non-VAT); and “THIS SERVES AS AN OFFICIAL RECEIPT.” Purchaser details (name/address/TIN) may be exempted from appearing on the CRM/POS receipt itself for authorized users—unless the purchaser is VAT-registered and the machine can display purchaser details, in which case a manually preprinted ATP invoice/receipt must be requested and issued by the seller to support input tax.
Suppliers/distributors/dealers/vendors apply for accreditation with the NMAB for Large Taxpayers Service jurisdiction or RMAB for those under RDO jurisdiction, through a sworn declaration and required attachments supported by inspection/demonstration.
Accreditation is limited to the specific brand-model/software evaluated. Any upgrading/integration/modification must be subject to prior approval.
The supplier registers the machine on behalf of the buyer/user not later than five (5) days from the date of sale and before actual use. Registration must disclose buyer TIN and VAT/non-VAT, machine serial/brand/model, and present reading/date of reading. A “Permit to Use” is then issued, attached conspicuously to the machine.
Users must maintain required sales books for CRMs, ensure correct tapes/journals and tamper-free operation, keep records available for verification, and for both CRM/POS avoid training/no-sale modes except with the required non-official receipt qualifier. They must notify BIR before changing business name/use/location or before repairs/updates/modifications; after modifications, a joint sworn statement is required and the machine must be inspected/evaluated before reuse.
It means the machine may be used for internal control even if it is not authorized to issue receipts. The supplier/BIR must be informed, and a poster must be displayed stating: “WARNING - THIS MACHINE IS NOT AUTHORIZED TO ISSUE RECEIPT. ASK FOR SALES INVOICE. REPORT ANY VIOLATION TO THE B.I.R. COMMISSIONER OF INTERNAL REVENUE.” The poster must not be detached or covered.