Legal basis and coverage
- The regulation is promulgated pursuant to Section 244, in relation to Sections 203, 222 and 235 of the National Internal Revenue Code of 1997 (NIRC), as amended.
- It amends Sections 2, 3, 4, 5 and 6 of RR No. 10-2015, as amended by RR Nos. 12-2015, 14-2015 and 6-2016.
- It governs taxpayers using cash register machines (CRMs)/point of sales (POS) machines and other invoice/receipt generating machine/software.
Core policy on paper use and retention
- Taxpayers using CRM/POS machines or other invoice/receipt generating machine/software have the option to use the type of paper depending on business requirements.
- The option to use any type of paper is subject to retention and preservation of accounting records for the period within which the Commissioner is authorized to assess and collect taxes under Sections 203 and 222 of the 1997 NIRC, as amended.
Mandatory content for tape receipts
- Tape receipts and the data printed on the tape receipts must show the information required under Section 5 of RR No. 10-2015, as amended, including the following:
- The tape receipt must show Taxpayer’s (TP) Registered Name.
- The tape receipt must show TP as Business Name/style, if any.
- The tape receipt must state that the taxpayer is VAT or NON-VAT registered, followed by the Taxpayer’s Identification Number (TIN) and a 4-digit branch code (example format: “VAT Registered TIN 123-456-789-0000”).
- The tape receipt must show the Machine Identification Number (MlN) and the serial number of the CRM/POS machine.
- The tape receipt must show the detailed business address where such Official Receipts (ORs)/Sales Invoices (SIs)/Commercial Invoices (CIs) shall be used/located and the date of transaction.
Operational receipt fields and VAT/Non-VAT markings
- Tape receipts must prominently include the Serial Number of the OR/SI/CI printed prominently.
- Tape receipts must provide a space for the Name, Address and TIN of the buyer.
- Tape receipts must contain: description of the items/goods or nature of service, quantity, unit cost, and total cost.
- For transactions subject to 12% VAT, the tape receipt must show the VAT amount.
- If the VAT taxpayer is engaged in mixed transactions, the amounts must be broken down to: VATable sales, VAT Amount, Zero Rated Sales, and VAT Exempt Sales.
- For Non-VAT ORs/SIs and CIs (VAT or Non-VAT) such as delivery receipts, order slips, purchase orders, provisional receipts, acknowledgment receipts, collection receipts, credit/debit memo, job orders and other similar documents that form part of accounting records and/or are issued to customers, the phrase “THIS DOCUMENT IS NOT VALID FOR CLAIM OF INPUT TAX” must be in bold letters and conspicuously printed at the bottom of the Non-VAT ORs/SIs/CIs.
- For taxpayers whose transactions are not subject to VAT or Percentage Tax, Non-VAT principal receipts/invoices must indicate prominently at the face the word “EXEMPT”.
- For taxpayers subject to percentage tax under Title V of the NIRC, who also sell goods/services under Section 109 (A) to (W), excluding (E) as amended by Republic Act (RA) No. 10378, the Non-VAT principal receipts/invoices must indicate the breakdown of Sales Subject to Percentage Tax (SSPT) and Exempt Sales.
Accredited supplier, BIR PTU validity notice
- The bottom portion of the OR/SI/CI printed must show:
- The Name, address and TIN of the accredited supplier of CRM/POS/Other similar machines/software.
- The accreditation number and the date of accreditation in the format (date issued amm/dd/yyyy) and valid until amm/dd/yyyy) of the accredited supplier.
- The BIR Final Permit To Use (PTU) Number.
- The phrase “THIS INVOICE/RECEIPT SHALL BE VALID FOR FIVE (5) YEARS FROM THE DATE OF THE PERMIT TO USE.”
Receipts for Senior Citizens and PWD transactions
- For taxpayers transacting with a Senior Citizen (SC) and/or Person/s With Disability (PWD) pursuant to RA 9994 (Expanded Senior Citizens Act of 2010) and RA 10754 (An Act Expanding the Benefits and Privileges of Persons With Disability (PWD)), receipts must include a space for:
- The Senior Citizen/PWD TIN.
- The OSCA ID No./PWD ID No.
- The Senior Citizen / PWD discount showing detailed breakdown of the 20% discount and/or 12% VAT exemption, whichever is applicable.
- The Signature of the SC/PWD.
- For taxpayers whose transactions are not covered by RA 9994/10754, the SC/PWD information may not be indicated.
Replacement of tape receipts and eSALES reporting
- A buyer/customer needing proof of payment for expense claims under income tax purposes or input tax claims under VAT purposes may return the issued tape receipt and request a manual invoice or receipt.
- Upon request, the seller shall issue the manual receipt/invoice to replace the previously issued tape receipt.
- Sales generated from CRM/POS machines where tape receipts were replaced by manual invoice/receipt must be deducted from sales to be reported in the eSALES system of the BIR.
- The deduction must be reflected as an adjustment in the CRM Sales Book/Back end report.
- The returned tape receipt must be attached to the duplicate copy of the manually issued invoice/receipt and must serve as the basis for adjusting sales.
- The sales replaced with manual invoice/receipt must still be included but must be separately indicated in the Summary List of Sales (SLS) required to be submitted by VAT registered taxpayers.
Penalties and revocation of inconsistent rules
- Any person who fails to comply with the regulations must be imposed a penalty based on existing revenue issuances.
- Provisions of existing regulations, rulings, or orders, or portions thereof, inconsistent with Revenue Regulation No. 16-2018 are revoked, repealed, or amended accordingly.