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SECTION 1. SCOPE. – Pursuant to the provisions of Section 244, in relation to Sections  203, 222 and 235 of the National  Internal  Revenue  Code of 1997 (NIRC), as amended, these Regulations  is hereby promulgated  to mandate the use of Non-thermal paper for all CRM/POS and other invoice/receipt-generating machine/software.

SECTION   2.   BACKGROUND.   –   Pursuant   to   Section   1   of   Revenue Regulations No. 5-2014, which states that:

“Section  1. Section  2  of  Revenue  Regulations  No.  17-2013  is  hereby amended to read as follows:”

“xxx

Section 2. RETENTION PERIODS. – All taxpayers are required to preserve their books of accounts, including subsidiary books and other accounting records, for a period of Ten (10) years reckoned from the day following the deadline in filing a return, of if filed after the deadline, from the date of the filing of the return, for the taxable year when the last entry was made in the books of accounts.

The term “other accounting records” includes the corresponding invoices, receipts, vouchers and returns, and other source documents supporting the entries in the books of accounts. They should also be preserved for a period of Ten (10) years counted from the date of last entry in the books to which they relate.

xxx”

Further,  in  relation  to  Section  5.2  of  Revenue  Regulations  No.  11-2004, which states that:

“5.2 For Cash Register Machines:

xxx… Provided, that all tape receipts issued, and the data printed on the receipts, are of a quality that can be preserved for a period within which the Commissioner is authorized to make an assessment and collection of taxes, as prescribed in Sections 203 and 222 of the National Internal Revenue Code, as amended.

xxx”

SECTION 3. NEW BUSINESS REGISTRANTS WITH CRM/POS/OTHER SIMILAR MACHINES/SOFTWARE. – All new business registrants with CRM/ POS/other  similar  machines/software  with  built-in  printer  for  their  transactions shall use non-thermal paper only.

SECTION   4.  EXISTING   REGISTERED   TAXPAYERS   WITH  CRM/POS/ OTHER SIMILAR MACHINE/SOFTWARE USING THERMAL PAPER. – Considering the associated costs of transitioning to non-thermal paper, a tiered compliance structure is hereby put in place to allow concerned taxpayers to meet compliance requirements  over a three (3) year-period (3 years depreciable life).

Accordingly,   all   existing   taxpayers   with   CRM/POS/other   similar   machines/ software using thermal paper for their daily transactions are subject to the herein prescribed staggered implementation dates, to wit:

For those subject machines registered starting:	Staggered Implementation Dates:
July 1, 2014 onwards	On or before July 1, 2018
July 1, 2013 – June 30, 2014	On or before July 1, 2017
Prior July 1, 2012 – June 30, 2013	On or before September 1, 2016

SECTION 5. INFORMATION THAT SHALL APPEAR AT THE OFFICIAL RECEIPTS/SALES   INVOICES/OTHER   COMMERCIAL   INVOICES   (ORs/SIs/ CIs) GENERATED  FROM CRM/POS/OTHER  SIMILAR  MACHINES/ SOFTWARE. – The ORs for sales of services or SIs/CIs for sales of goods generated  from  CRM/POS/other   similar  machines/software,   shall  be  printed showing among others the following:

1.    Taxpayer’s (TP) Registered Name;

2.    TP’s Business Name/style (if any);

3.     A statement that the taxpayer is VAT or Non VAT registered followed by the Taxpayers  Identification  Number (TIN) and 4-digit Branch Code. (Example: VAT Registered TIN 123-456-789-0000);

4.    Machine Identification Number (MIN);

5.    Detailed Business address where such ORs/SIs/CIs shall be used/located;

6.    Date of transaction;

7.    Serial Number of the OR/SI/CI printed prominently;

8.    A space provided for the Name, Address and TIN of the buyer;

9.    Description of the items/goods or nature of service;

10. Quantity;

11. Unit cost;

12. Total cost;

13. VAT amount (if transaction is subject to 12% VAT);

14. If the VAT taxpayer is engaged in mixed transactions, the amounts involved shall be broken down to: VATable  Sales, VAT Amount,  Zero Rated Sales, and VAT Exempt Sales;

15. For Non-VAT ORs/SIs and other 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 the accounting  records of the taxpayer and/or issued to their customers, in addition to the above-enumerated applicable information, the phrase “THIS DOCUMENT IS NOT VALID FOR CLAIM OF INPUT TAX” in bold letters, shall be conspicuously  printed at the bottom of the Non VAT ORs/SIs and other CIs;

16. Taxpayers  whose  transactions  are not subject  to VAT  or Percentage  Tax shall issue non-VAT principal receipts/invoices  indicating prominently  at the face of such receipts/invoices the word “EXEMPT”.

17. If the taxpayer is subject to percentage tax under Title V of the NIRC, as amended,  but  also  sells  goods/services   under  Section  109  (A)  to  (W), excluding  (E) of the same Code, as amended  by Republic  Act No. 10378, the non-VAT principal receipts/invoices shall indicate the breakdown of Sales Subject to Percentage Tax (SSPT) and Exempt Sales;

The  following  information  shall  be  printed  at  the  bottom  portion  of  the OR/SI/CI:

1.     Name, address and TIN of the accredited supplier of CRM/POS/other similar machines/software;

2.     Accreditation     number     and     the     date     of     accreditation     (date     issued
“mm/dd/yyyy” and valid until “mm/dd/yyyy”) of the accredited supplier;

3.     BIR Final Permit to Use (PTU) Number;

4.     The  phrase  “THIS  INVOICE/RECEIPT  SHALL  BE  VALID  FOR  FIVE  (5) YEARS FROM THE DATE OF THE PERMIT TO USE.”

For taxpayers transacting with Senior Citizen/s (SC/s) and/or Person/s With Disability  (PWD)  pursuant  with  Republic  Act  No.  9994  known  as  “Expanded Senior Citizens Act of 2010”, in addition to the information enumerated above, a space for the following shall also be required:

1.     Senior Citizen/PWD TIN;

2.     OSCA ID No./PWD ID No.;

3.     Senior  Citizen  Discount/PWD  Discount  (show  detailed  breakdown  of 20%
discount and/or 12% VAT exempt); and

4.     Signature of the Senior Citizen/PWD.

However,  for taxpayers  whose  transactions  are  not covered  by RA 9994,  the above information may not be indicated.

SECTION  6.  TAXPAYERS  USING  CRM/POS  LINKED  TO COMPUTERIZED ACCOUNTING SYSTEM (CAS) WITH OPTION TO SEND ELECTRONIC  MAIL TO CLIENT-TAXPAYERS. – All existing taxpayers issuing receipts/invoices generated thru CRM/POS/other similar machine/software (using thermal paper or otherwise), including those connected to a network or linked to CAS or component(s) thereof, generating electronic receipts, shall be covered by the requirements set forth under Section 4 and 5 hereof.

SECTION  7.  PENALTIES. –  Any  violation  of  these  Regulations  shall  be subject to the corresponding penalties under the pertinent provisions of the NIRC of 1997, as amended, and applicable Revenue issuances of the BIR.

SECTION 8. TRANSITORY  PROVISIONS. - In order to provide ample time in procuring, reconfiguring machines and systems, to comply with Section 5, adjustments  shall be undertaken  on or before October  1, 2015. Any extension due to enhancements  of systems required to be undertaken  abroad shall seek the  approval  from  the  concerned  Regional  Director  or  ACIR,  Large  Taxpayer Service which shall not be longer than six (6) months from the effectivity of these Regulations.

SECTION 9. REPEALING CLAUSE. – The provisions of any existing regulations, rulings or orders, or portions thereof inconsistent with the provisions of these Regulations are hereby revoked, repealed or amended accordingly.

SECTION 10. EFFECTIVITY. – This Regulations shall take effect fifteen (15) days after its publication in a newspaper of general circulation.