Law Summary
Scope and Coverage
- Includes all business machines capturing sales: Cash Register Machines (CRM), Point-of-Sale (POS) Machines, Taximeters, Handheld/Mobile Devices used in business for sales transactions.
Definitions
- CRM: Machine with memory recording sales using firmware in EPROM chips, replacing official receipts.
- POS Machine: Computerized advanced version of CRM, tracks orders, credit card processing, inventory.
- CRM/POS linked to CAS: Machines connected to a Computerized Accounting System.
- Computerized Accounting System (CAS): Integrated computerized Books of Accounts.
- Stand-Alone CRM/POS: Machines operating independently.
- System Enhancement: Modifications in software or system components.
- Volatile Memory: Memory losing content without power.
- Non-Volatile Memory: Memory retaining content after power off.
- Sales Machine: Device that issues receipt/invoice for sales transactions.
General Provisions for Use and Permits
- Only accredited and registered machines compliant with specifications shall receive "Permit to Use".
- Existing permits before effectivity remain valid until revoked.
- Immediate use allowed if machines are accredited or registered accordingly.
- Bureau may inspect machines anytime during business hours.
- Non-compliant machines found post-inspection may be subject to seizure.
Machine Control Specifications
- Must have non-resettable accumulating grand total of at least 10 digits.
- Equipped with a reset counter or unique sequential transaction numbering.
- Must be tamper-proof with no "training mode" or "no-sale transaction mode".
- Must print "THIS IS NOT AN OFFICIAL RECEIPT" on paper tapes if applicable.
- Capable of reporting daily sales and accumulated totals.
- Equipped with non-volatile memory or backup system.
- Reflect sales discounts, refunds, and separate VAT and Non-VAT sales.
- CRMs require dual rollers for audit and customer receipts; safety mechanism preventing single roller operation.
- POS connected to a central server must store sales data accessible by the Bureau.
Receipt/Invoice Data Requirements
- Must include business and taxpayer’s name, TIN, address, receipt number, machine accreditation number, date, quantity, product description, transaction amount with VAT/Non-VAT split.
- Must state "THIS SERVES AS AN OFFICIAL RECEIPT".
- Purchaser’s TIN, name and address exempt on CRM/POS receipts unless purchaser is VAT-registered requiring manual preprinted receipts.
Accreditation of Machines
- Suppliers must have machine models accredited before distribution.
- Applications must be submitted to National or Regional Machine Accreditation Board with sworn declaration and supporting documents.
- Includes machine details, sample receipts, software demos, system descriptions, reset keys.
- Machine inspections/demonstrations conducted for compliance verification.
- Certificates of accreditation issued with accreditation number posted on BIR website.
- Upgrades or modifications require prior approval.
- Accreditation may be revoked for violations.
Machine Accreditation Boards
- National and Regional Boards evaluate and inspect applications.
- Boards composed of various BIR officials and representatives.
- Process applications only if complete documentation is submitted.
- Final approval by heads of Large Taxpayer Divisions or Revenue District Officers.
Registration of Machines
- Manufacturers/dealers register machines on behalf of buyers within five days after sale.
- Registration can be manual or electronic.
- Registration data includes TIN, VAT status, machine serial number, brand, model, and meter readings.
- Permit to Use issued after registration and must be visibly attached on machines.
Conditions for Use
- Maintain registered cash register sales book.
- Both rollers must be used and tapes legible and preserved.
- POS users must seek approval for document ranges and must not operate without electronic journal.
- No tampering with receipt numbering or switching to non-sale modes unless receipts are marked accordingly.
- Machines must be used exclusively for registered lines of business.
- Changes in business name, location, or machine modifications require prior notice and joint sworn statements.
- Machines may only be withdrawn from use with prior approval and proper verification.
Reporting and Monitoring
- Suppliers must submit quarterly Summary List of Machines Sold electronically.
- List reconciled with Bureau’s registration database; discrepancies verified.
Use of Machines for Internal Control Only
- Machines may be used for internal control if official receipts are issued for sales.
- Prior notification and posting of warning posters is required.
- CRMs without receipt dispensers may be exempted from certain requirements.
Registration of Other Machines and Lines of Business
- Machines capable of multiple business lines must clearly indicate distinctions.
- Applications to use machines for other lines require investigation and approval.
- Bill/coin/token-operated unmanned machines must also be registered.
- Taxi-meters covered under separate regulation but follow accreditation processes here.
Transitory Provisions
- Distributors must inventory non-compliant stocks and schedule phase-out.
- Urged to withdraw non-compliant machines from sale.
Repealing Clause and Effectivity
- Inconsistent prior regulations repealed or modified.
- Regulations effective 15 days after publication in newspapers.