Law Summary
Eligible Lines of Business for Permit Issuance
- Permits issued only to proprietors, owners, or operators of specified lines of business such as supermarkets, department stores, drugstores, bookstores, groceries, bakeries, restaurants, bars, music stores, garages, gasoline stations, hotels, token exchange stations, recreational centers, and similar establishments.
- Commissioner of Internal Revenue may qualify other lines of business considering modern practices.
Application Procedures
- Application in the form of a joint sworn declaration by the applicant and machine distributor/dealer including detailed machine specifications.
- Filed with the Revenue District Officer where the machine will be used.
- Required attachments include current registration fee return, business registration certificates, sample receipts, operating manuals, and software details for POS.
Permit Issuance and Conditions
- Revenue District Officer issues permits after inspection and evaluation.
- Large Taxpayers Division or Regional Director handles applications within their jurisdiction.
- Separate permits required for each application and line of business.
- Conditions include exclusive use for one business line, machine features like dual rollers for audit and customer receipts, reset counter, legibility, non-tampering of receipt numbering, and preservation of tapes.
- Proprietors must notify prior to changes or repairs and surrender keys.
- Permits must be attached to the machine visibly with serial numbers.
- Machines capable of separating taxable and non-taxable sales may be authorized.
Recording of Sales
- Daily summaries of audit journal tapes must be entered into the Cash Register Sales Book.
- Total sales from all registered machines aggregated in the Cash Receipts Book or Columnar Journal by noon the following day.
- Audit journal tapes and sales books form part of accounting records and must be preserved per laws.
Use of Cash Register Machines for Internal Control Only
- Machines may be used for internal control if registered sales invoices are issued for all sales.
- Notification to Revenue District Officer required and a warning poster must be displayed on the machine.
- Machines without receipt dispensing mechanism can be used without the poster.
Exemptions
- Users of cash register machines exempted from showing buyer’s name, business style, address, and TIN on receipts, even if buyer is VAT-registered.
- This does not bar purchasers from requesting official registered invoices or receipts.
Registration of Other Types of Machines and Additional Business Lines
- Machines with capacity to accumulate sales for multiple lines of business may be authorized provided sales are clearly distinguished.
- Application filed with Revenue District Officer for verification.
- Unmanned bill, coin, or token-operated machines without receipt issuing capacity must be registered.
Penal Provisions
- Violations may lead to revocation of permit.
- Violations equivalent to non-issuance or issuance of unregistered receipts are penalized under Section 264 of the NIRC.
Transitory Provisions
- Regional Directors to require submission of inventory of all machines within 60 days.
- Existing permits remain valid for 60 days from effectivity then require reapplication.
- Registration of cash register sales books required within 60 days.
Repealing Clause
- Inconsistent revenue regulations, orders, or memoranda are repealed or modified accordingly.
Effectivity
- Regulations effective immediately upon issuance.