Transcript Registration, Bookkeeping & Invoicing

Presented by:
MS. GLORY JANE H. BRIONES
Revenue Officer
Revenue District No. 112, Tagum City

Legal Basis
Section 236 of the 1997 Tax Code
Relevant Revenue Issuances
RR 11-2008 dated Aug. 15, 2008
Primary Stage
Second Stage
Persons
who may
secure
TIN
Apply
for TIN
TIN Application
Form
Registration
Form
Documentary
Requirement
s
Documentary
Requirements
Submit to TSS
Comp
lete?
Issue
TIN
Accomplish
Registration
Form
Reject
Application
Submit to
appropriate RDO
Issue
COR




Any person subject to any national internal
revenue tax
Any person required to withhold taxes on
account of his income payments
Any person who makes, renders or files a
return, statement or other document whereby
he/it is required to indicate his/its TIN
Application to open bank account, loan with
banks, financial institutions & other
intermediaries



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Application for Mayor’s Permit
Application for business license with DTI
Other documents
Any person required to secure TIN by virtue
of EO No. 98


Individual – Birth certificate or any ID card
that will show applicant’s complete name,
address, proof of birth, and signature. For a
married woman: marriage contract shall be
required.
Non-individual –
1. proof of authority of authorized
representative
2. Corporation – SEC Certificate, Articles
of Corporation/Partnership

Non-individual (continued)
3. Cooperatives – CDA Registration & Articles
of Cooperation
4. Homeowner’s Association – HLURB
Certificate
5. Gas, LGUs, GOCCs – Unit or Agency’s
Charter
6. Estate under Judicial Settlement – Death
certificate of decedent
7. Irrevocable Trust – Trust Agreement


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Sale, Assignment, Mortage, Purchase and/or
Disposal of shares of stock and/or real estate
properties – Deed of Sale/Deed of
Assignment/Mortgage Document
Donation of properties – Deed of Donation
Transfer of properties by succession – Deed of
Extrajudicial Settlement of Estate, Judicial
Settlement of estate, Death Certificate
Claim of Winnings – Certification from Awarding
Company/person
Registration of Vehicle – Cash Invoice or Official
Receipt for brand new vehicle; for second-hand
vehicle, Deed of Sale and COR
Secure TIN
Proceed
to
Second
Stage?
No
System
Confirmati
on Page
Yes
System
Confirmation
Page/Other
Doc. Reqs.
Submit to
TSS of BIR



For Individuals/Non-individuals – RDO having
jurisdiction over the place where the HO or
branch is located.
For roving stores, mobile store operators,
privilege store owners and the like – RDO
having jurisdiction over the place of residence
of seller
For employees – place of office of the
employer where such employee is expected
to report for work

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For employees of employers under TAMP –
employers shall be responsible for securing
TIN through the e-TIN/e-Reg facility.
Employees with multiple employers – RDO
having jurisdiction over his principal/main
employer.
Estate – residence of the decedent
Donation – residence of the donor
Sale of real property – RDO having
jurisdiction over the real property


Sale of shares of stock – address of the seller
for shares of stock not traded in the stock
exchange. For listed shares, place where the
Local stock Exchange is located.
Other applicants (E.O. 98) – residence of the
applicant

Who are required to proceed to the second
stage of the registration process?
a. Employees
b. Self-employed individuals,
professionals, estates and trusts, their
branches or facilities
c. Corporations, partnerships,
cooperatives, associations, their branches or
facilities
d. GAIs, GOCCs, LGUs, their branches or
facilities

Except for employees and facilities, it is the
stage where the registrants are required to:
1. pay registration fee, if applicable;
2. secure Certificate of Registration;
3. get “Ask for Receipt” notice, if
applicable;
4. attend the taxpayer’s initial briefing to
be conducted by the BIR



Employees – Within 10 days from date of
employment
Self-employed individuals, professionals,
estates and trusts, their branches – within
thirty (30) working days from the day the
corresponding Mayor’s Permit/PTR is issued
to the taxpayer
Corporations (Taxable or Non-taxable) –
before payment of any tax due

Partnerships, Associations, Cooperatives, Gas
and instrumentalities – before or upon filing
of any applicable tax return, statement or
declaration


Registration Form shall be filed with the
same RDO where TIN was obtained
If individual applies for business and
principal place of business is under the
jurisdiction of a RDO different from the
RDO that issued his TIN, said TIN shall be
transferred to the new RDO



The COR shall only be issued to individuals
engaged in business or the practice of
profession and to juridical persons
Each HO, branch or facility shall be issued
with a COR
Posting of COR – Persons issued with COR
shall post or exhibit the same, and his/its
duly validated RF Return at a conspicuous
place in its/his principal place of business

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A. Deliberate misrepresentation or omission
by the taxpayer of material facts in the
application;
B. Non-submission by the taxpayer of
material supporting documents required of
him by the BIR;
C. The filing of application is on its face
erroneous or fraudulent;
D. The taxpayer already has a previously
issued TIN

An annual Registration Fee (RF) in the amount
of P500.00 for every separate or distinct
establishment or place of business shall be
paid upon registration and every year
thereafter on or before January 31 by every
person subject to any internal revenue tax.
The following are exempt from the
imposition of annual registration fee:
1. Cooperatives duly registered with the
CDA;
2. Individuals earning purely compensation
income
whether locally or abroad;
3. Overseas workers;
4. GAIs, in the discharge of governmental
functions;
5. Marginal Income Earners;
6. LGUs;
7. Tax exempt persons enumerated under
Section 30 of the Code, as amended;
8. Non-stock/non-profit organizations
not
engaged in business;
9. Persons subject to tax under one-time
transactions; and
10. Facility/ies where no sales transaction
occur.

To an Authorized Agent Bank (AAB) located
with the RDO, or to the Revenue Collection
Officer (RCO), or duly authorized Treasurer
of the city or municipality where each place
of business or branch is registered, subject
to the EFPS rules and regulations.

Registration of tax types/fees by a business
entity would consist of the following:
a. Income tax;
b. VAT and/or percentage tax;
c. Withholding tax on compensation;
d. Creditable withholding tax at source on
certain income payments;
e. Final withholding tax on certain income
payments;
f. Documentary stamp tax;
g. Excise tax; and
h. Annual registration fee.

The types of taxes which are on tax
holiday or exemption shall not be included
in the registration of tax types he is
obligated to pay for the effectivity of the
exemption period. Upon expiration
thereof, the RDO shall automatically
update the registered tax types.

VAT Registration
Any person who, in the course of trade or
business, sells, barters, exchanges goods
or properties, or engages in the sale of
services subject to VAT imposed in Secs.
106 and 108 of the Code, as amended.

Mandatory VAT Registration
1. gross sales/receipts for the past twelve
(12) months except Section 109 (1) (A) (U)
of the Tax Code, exceeds P1.5M; or
2. there are reasonable grounds to believe
that his gross sales or receipts for the next
twelve (12) months, other than those
under Section 109 (1) (A) to (U) of the Tax
Code, will exceed P1.5M.


Register with the RDO having jurisdiction over
the Head Office of that person.
Failure to register shall make him liable to
pay the output tax, as if he were a VATregistered person, without benefit of input
tax credits for the period in which he was not
properly registered.

Non-VAT Registration
Who are required to register under nonVAT:
1. those persons subject to percentage
tax under Title V of the Code;
2. those whose transactions are VATexempt under Section 109 of the Code;
and
3. Marginal income earners.

Who may opt for VAT Registration?
1. Any person who is VAT-exempt since
gross sales/receipts do not exceed P1.5M;
2. Any person who is VAT-registered whose
transactions are mixed, on his exempt
transactions; and
3. Franchise grantees of radio and/or TV
broadcasting whose gross receipts of the
preceding year do not exceed P10M. This
option, once exercised, is irrevocable.


Apply for VAT registration not later than ten
(10) days before the beginning of the taxable
quarter.
Once registered, the optional VAT taxpayer is
liable to output tax and entitled to input tax
beginning the first day of the month
following his registration.


DST shall only be registered in respect to
those taxpayers who are liable to pay it on a
periodic basis.
Registration of excise tax type shall only be
applicable to those persons subject to it
under Section VI of the Tax Code.

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Income tax – with the Head Office only;
VAT – with the Head Office only;
Percentage tax – with the Head Office only,
on a consolidated return (pertinent to the
total sales of all the branches); or with each
branch pertinent to the sale of each branch;
Withholding tax on compensation – with the
Head Office only or with each branch, at the
option of the taxpayer;
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Creditable withholding tax at source on
certain income payments – with Head Office
only or with each branch, at the option of the
taxpayer;
Final withholding tax on certain income
payments – with Head Office only or with
each branch, at the option of the taxpayer;
Documentary stamp tax – with Head Office
only or with each branch, at the option of the
taxpayer;
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
Excise tax – with the Head Office or with
each branch, at the option of the taxpayer;
Annual registration fee – in the Head Office
and in all the branches, facilities with sales
transaction

For Large Taxpayers
Rules on registration of tax type does not
apply since they are required to register
under the eFPS facilities.
Income, VAT, Percentage, and withholding
taxes shall be filed on a consolidated
basis.

Instances where taxpayer shall update his
registration information:
1. A person’s business has become exempt
in accordance with Section 109 (1) of the
Code;
2. A change in the nature of the business
itself from sale of taxable goods to exempt
sales;
3. A person who availed of the optional VAT
registration, who, after three years, applies
for cancellation as such;
4. A VAT-registered person whose gross
sales/receipts for three (3) consecutive years
did not exceed P1.5M beginning July 1, 2005;
and
5. Any other changes/updates in registration
information previously supplied, including
cancellation or change in any tax types.
Cancellation may either be cancellation of TIN
or business registration
Reasons for cancellation of TIN
1. Death of an individual;
2. Dissolution, merger or consolidation of
juridical person;
3. Discovery or a taxpayer having multiple
TINs;
4. Payment of estate tax

FORMS
1900
TITLE
Due date
Application for Authority to Use CAS or
Components thereof / Loose-Leaf Books of
Accounts
1901
Application for Registration for Self-Employed
and Mixed Income Individuals, Estates and
Trusts
W/in 30 days from
date of
commencement of
business
1902
Application for Registration for Individuals
W/in 10 days from
Earning Purely Compensation Income, and Non- date of employment
Resident Citizens/ OCWs/Seamen Earning Purely
Foreign-Sourced Income
FORMS
TITLE
Due date
1903
Application For Registration for
Corporations/Partnerships (Taxable/NonTaxable), Including GAIs and LGUs
W/in 10 days from
date of registration
with SEC/CDA
1904
Application for Registration for One-Time
Taxpayer and Person Registering under E.O. 98
1905
Application for Registration Information Update W/in in 30 days from
date of change
1907
Application for Permit to Use Cash Register
Machine/Point-of-Sale Machine

Cancellation of business registration may be
granted on the following instances:
1. Closure/cessation of business
registration;
2. Dissolution of corporate partnership;
3. Merger/consolidation;
4. Death of an individual

Legal Basis
Sections 232 to 235 of the 1997 Tax Code
All corporations, companies,
partnerships or persons required by
law to pay internal revenue taxes.


Simplified set of books – if quarterly sales,
earnings or receipts, or output do not exceed
P50,000
Audited Financial Statements – if gross
quarterly sales, earnings or receipts or output
exceeds P150,000

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Journal (Sales Journal, Purchase Journal, Cash
Book)
Ledger
Subsidiary books
Electronic Records (RR 9-2009) – if a taxpayer
maintains electronic and hard copy formats,
the TP shall make the records available to the
Bureau in electronic format upon request of
the commissioner or its authorized
representative


All Large Taxpayers under RR 1-98 are
required to maintain CAS (Computerized
Accounting System) or components thereof.
All books of accounts and accounting records
shall be in electronic format.
All LT who are currently using manual books
of accounts are required to register CAS not
later than December 31, 2009.


CAS books/records may be examined by duly
authorized Revenue Officers and BIR Officials
in the course of a tax audit/investigation.
Books of accounts/other accounting records
in electronic format that were submitted and
registered with the BIR within thirty (30) days
from the close of the taxable year (RMO 292002) shall be provided to the BIR upon
audit/investigation.
Registration Procedures:
1. Manual books of accounts previously
registered
◦
◦
whose pages are not yet fully exhausted can still
be used in the succeeding years without the
need of re-registering or re-stamping
the portions pertaining to a particular year
should be properly labelled or marked by the
taxpayer.
2.
The registration of a new set of manual
books of accounts shall only be at the time
when the pages of the previously registered
books have all been already exhausted.
 Not necessary to register new set of manual books of
accounts each and every year.
3.
other deadlines

Jan. 30 of the ff year (RMO 29-2002) applies only to
computerized books of accounts and not to manual
books of accounts

The “15 days after the end of the calendar year”
(RMC 13-82) refers to loose-leaf books of accounts
and not to manual books of accounts
4.
Newly registered taxpayers shall present the
Manual Books of Accounts before use to the
RDOs where the place of business is located
or concerned office under the Large
Taxpayer Service for approval and
registration.
5.
6.
Subsidiary manual books of accounts to be
used by taxpayers, in addition to the
manual books of accounts, shall be
registered before use, following the same
rules.
TSS personnel has no authority to examine
whether the previously registered books are
complete and/or updated prior to its
approval.
The requirement of binding and stamping of
computerized books of accounts and/or
receipts and invoices are no longer necessary,
provided that:
1. Soft copy of the CAS in text file format
shall be made available in the ff mode:
 In CD-ROM (read only) properly labelled
 Electronically archived information
In case the TP has no capability to submit in CD-ROM
form, procedures under the manual system shall
prevail

2. A duly notarized certification in the form of an
affidavait ascertaining/attesting the accuracy of
the ff shall be submitted to the RDO within 30
days from the close of the taxable year:


The number of receipts and invoice used during the
year; and
Soft copy in CD-ROM duly stamped “registered” and
signed by authorized official or the archived books
of accounts

TP should be required to bind the loose leaf
forms within 15 days after the end of the
taxable year
All persons subject to internal
revenue tax shall
 For each sale of P25 or more
 Issue duly registered receipts or
sales or commercial invoices
 Prepared at least in duplicate
Required information:
 Date of transaction
 Quantity
 Unit Cost
 Description of merchandise or
nature of the service
 TIN of purchaser if VATregistered
Required information:
Name, business style and address of
the purchaser shall be indicated in
the ff cases –
 Amount exceeds P100;
 Seller and buyer are VAT-subject
persons;
 Receipt covers rentals, commission,
compensation or fees.
Disposition of the receipts/invoices
◦ Original -> purchaser
◦ Duplicate -> retained by issuer
Copies of receipts/invoices should
be preserved in the place of
business for a period of 3 years, if
engaged in business.
Invoicing Requirements
(Sec. 237)
(continued)
BIR Printed Receipts (RMO 13-2003)
All registered taxpayers who are
required by law under Section 237
of the Tax Code to issue duly
registered receipts or sales and/or
commercial invoices may, at their
option use the BPR provided these
taxpayers have
Invoicing Requirements (Sec. 237)
BIR Printed Receipts (BPR)
Business transactions that will require the use of
not more than one booklet of 50 pages in one
taxable period (of no less than 12 months)
However, the use of BPR is mandatory for
taxpayers who were found during the TCVD to
have committed for the first time any of the
following violations:
Invoicing Requirements
(Sec. 237)
BIR Printed Receipts
1. Failure to register with BIR under
Sec. 236 of the Tax Code but has
commenced business and failure to
issue duly registered receipts or
invoices;
2. Registered with BIR but without
required receipts or invoices;
Invoicing Requirements
(Sec. 237)
BIR Printed Receipts
3. Possession of any of the following:
a. Unregistered and/or fake receipts/
invoices;
b. Multiple or double sets of receipts/
invoices;
c. Unregistered cash register
machines, POS or similar devices
Information required
1. Serial number (separate series for
HO and branch
2. Name
3. Business style
4. TIN and Branch Code (if applicable)
5. Business Address (exact) of user (HO
or branch)
Centralized issuance of ATPs –
 At the RDO of the HO
 Separate application and permit
for
each establishment to be
filed at RDO of the HO
 Signed by official of the HO
Register the receipts with RDO of
the user (HO or branch).
Users of registered Computerized
Accounting Systems (CAS) – are
also be required to secure ATP
for manual receipts and invoices
to be issued in case of system
unavailability or if the CAS does
not
generate
pre-numbered
receipts/invoices.

Display “Ask For
Receipt Poster”
which shall be
issued upon
release of COR

Display Certificate
of Registration
(COR) at the
establishment (BIR
Form 1556)
At the place of business
 In an area conspicuous to the
public
 At all times

Penalty: P1,000 and/or
imprisonment of not more than 6
months.
Stickers
for CAS-linked CRM/POS
machines shall be issued by the
RDO of the branch upon
submission of copy of the Branch
Permit issued by the HO RDO.
For
stand-alone CRM/POS
machines, the provisions of RR 1099 or later regulations shall apply.
Requirement for a Cash Register
Machine Sales Book shall be waived if
CAS is capable of generating reports
such as daily sales and accumulated
sales containing all the information
required in the manual CRM Sales
Book. These shall be made available
during post system evaluation of the
CAS or during an authorized tax audit.
Pools of stand-by or roving
CRM/POS machines for use during
peak seasons shall be treated as
HO machines and identified as
such in their applications.
 Transfer thereof to branches
shall be subject to approval of the
HO RDO.
Alternative receipts in case of
systems downtime, and CAS has
no redundancy/automatic
switchover:
1. Remaining receipts from previously
approved manual receipts; or
2. Manually pre-printed and prenumbered receipts not exceeding
1,000 sets with approved ATP.
For CAS generating receipts and
invoices, whether global or national:
Secure advanced approval of the next
set of Pre-Approved Range of Serial
Number within 30 days before full
utilization of current series.
If printed abroad under a global
system, present to the BIR for
registration prior to use, in lieu of
advanced approval.
For CAS generating receipts and
invoices, whether global or national:
 Within 30 days from the close of the
taxable year, submit a report on the
range of serial numbers of receipts
and invoices consumed and/or
cancelled during the taxable year.
Binding and stamping of computerized
books of accounts and/or receipts and
invoices generated by an approved
CAS shall no longer be required,
provided that soft copy be made
available in any of the following
mode:
1.
2.
CD-ROM (read only) labeled with the name of
taxpayer, taxable year and the Serial No. and
Volume No. of the books of accounts and
other accounting records/documents duly
stamped registered and signed on the label
by the LTAD I or II, LTDO or RDO.
Subsequent adjustments shall also be
submitted in the same format.
Electronically archived information to be
retained for three years from due date or
actual date of filing of the annual ITR.
3.
A notarized affidavit attesting to the accuracy
of the required soft copy and the number of
receipts and invoices used during the year
shall be submitted to the LTAD I or II, LTDO
or RDO within 30 days from the close of the
taxable year.

Required Specifications
1. must have a non-resettable accumulating
grand total of at least ten(10) digits or
twelve(12) digits
2. equip CRM with a reset counter that
advances by 1 every time the accumulating
grand sales total is reset to zero.
3. must be tamper-free
4. must be able to generate a daily sales
report and accumulated grand total recorded
therein

5. non-volatile memory or must be equipped
with a recovery/back-up system
6. reflect/store information on sales
discounts, refunds, etc.
7. indicate separately VAT and non-VAT
subject items
8. generates a report summarizing all VAT
sales and non-VAT sales



The machine must be equipped with two (2)
rollers, one for customers’ tape copies and
the other for audit journal tape.
POS machines connected to a server, all sales
per POS must be automotically and
completely recorded in the central server.
The stored data shall be preserved for a
period within which the Commissioner is
authorized to make an assessment and
collection of taxes.
1. CONTENTS
 A. Business Name;
 B. Registered Taxpayer’s Name with BIR;
 C. TIN;
 D. Address where machine will be used;
 E. Receipt/Invoice Number;
 F. Machine Model Accreditation Number;
 G. Date of Transaction;
 H. Quantity;
 I. Product Description;
 J. Amount of Transaction;
 K. “THIS SERVES AS AN OFFICIAL RECEIPT”


2. Submit sample design of receipt upon
application for accreditation;
3. Businesses authorized to use CRM/POS
are exempted from showing Name, Business
Style, Address and TIN of taxpayer;


Responsibility of Machine/System suppliers –
accredit the machine with the Bureau prior to
actual distribution/sale of such machines.
Venue for Accreditation
a. National Office MAB – for supplier
under the jurisdiction of the LTS;
b. Regional Office MAB for supplier under
the jurisdiction of the RDOs.
The application must be in the form of a
Sworn Declaration



Actual system demonstration/machine
inspection must be conducted by the
applicant-dealer
Once dealer is accredited, he/it will be issued
an Accreditation Number
Any upgrading, integration or modification
made in the machine shall be subject to prior
approval

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
Vendor/dealer/manufacturer must register the
machine within five (5) days from date of sale of
the machine;
Registration may be done manually, by e-mail or
website of the BIR
If applied thru website, the system-generated
permit serves as the taxpayer’s authorization to
use the machine;
Attach Permit to Use to the back of the machine;
Print boldly the serial number of the machine




Maintain cash register sales book for each
machine (RR 10-99);
Install corresponding tapes on both rollers or
its equivalent;
The imprint on the tapes should be legible at
all times;
The subsidiary cash register sales book
should be available at all times at the place
where the CRM is located, and shall be
available at all times for verification.



All users of POS machines must secure
approval from the Bureau, in writing, for the
use of such machines;
Secure approval also for the subsequent
document range of serial numbers to be used
at least one month prior to consumption of
previous document range;
No POS shall be operated without the
corresponding electronic journal.





Report all number of resets to the Bureau;
No switching to “training mode” or “no-sale
transaction mode”;
Use machine exclusively in the operation of
only one line of business;
Changes or updates on the information of the
tape shall not be done without prior written
notice to the Bureau;
Any repair, change, upgrade or updates to
the machine shall not be done without prior
written notice to the Bureau;



Following the repair, upgrade, change,
modifications or any update, and prior to the
reuse of the machine, user and person who
made the repair must submit a joint sworn
statement attesting to such development;
The machine may be withdrawn from use,
retired or sold only upon prior application of
and approval by the Bureau;
The receipt numbering mechanism/circuit of
a registered machine shall not be disturbed
or tampered with.