AMENDING THE TRANSITORY PROVISIONS OF REVENUE REGULATIONS (RR) NO.7-2024 RELATIVE TO THE DEADLINES FOR COMPLIANCE WITH THE INVOICING REQUIREMENTS

Introduction

REVENUE REGULATIONS NO. 11 – 2024

Amends the transitory provisions of RR No.7-2024 in relation to deadlines for compliance with the invoicing requirements under the Ease of Paying Taxes Act.

The following amendment to RR No.7-2024 are as follows:

1.  Certificate of Registration (COR) reflecting the Registration Fee – The existing BIR Certificate of Registration which displays the Registration fee does not need to be replaced by business taxpayers and the validity of the same shall be retained. Taxpayers are also no longer required to pay the Annual Registration fee. If there are changes to the registration information excluding Registration Fee, the COR must be updated.
2. Unused Official Receipts-
   1. Taxpayers may continue the use of remaining Official Receipts as supplementary document – Unused or unissued Official Receipts can be used as supplementary documents until fully consumed, provided the phrase “THIS DOCUMENT IS NOT VALID FOR CLAIM OF INPUT TAX” is stamped. Official receipts, along with other documents like Collection Receipt, Acknowledgement Receipt, and Payment Receipt, serve as proof of payment for goods or services.
   2. The taxpayer may convert the remaining Official Receipts into an invoice and the Billing Statement/Statement of Account/Statement of Charges into a Billing Invoice. – Taxpayers are allowed to strikethrough the word “Official Receipt” or “Billing Statement/Statement of Account/Statement of Charges” on manual/ printed receipts, stamping them as “Invoice”, “Cash Invoice”, “Charge Invoice”, “Credit Invoice”, or any names describing and issuing transaction as primary invoice provided that it includes necessary information under Section 6(B) of RR No. 7-2024, including quantity, unit cost, and service description, and may be stamped if not originally indicated to comply with the requirements.
      
      These documents are valid for claiming input tax and serving as proof of sales transaction/payments from April 27,2024 until fully consumed, provided it bears the stamped “Invoice/Billing Invoice” and no missing information as enumerated under Section 3(D)(3) of RR No. 7-2024.
      
      Starting April 27, 2024, manual “Official Receipts” issued without a stamped “invoice” will be considered supplementary documents and ineligible for input tax claims, as per Section 8(2.1) of these Regulations.
      
      Taxpayers can stamp Official Receipt as Invoice or Billing Statement/Statement of Account/Statement of Charges without approval from Revenue District Offices/LT Offices/LT Divisions but in compliance with Section 8(2.3). They must also obtain new printed invoices with the Authority to Print (ATP).
      
      Taxpayers can stamp Official Receipt as Invoice or Billing Statement/Statement of Account/Statement of Charges as billing invoice without approval from Revenue District/LT Offices (with compliance of Section 8-2.3) New printed invoice with Authority to Print must be obtained.
   3. Reportorial requirement for unused Official Receipts/Billing Statement/Statement of Account/Statement of Charges to be used as Invoice or Billing Invoice upon effectivity of these Regulations –  Unused manual and loose leaf Official Receipts/Billing Statements/Statement of Account/Statement of Charges that will be converted as invoice or billing must be reported by submitting an inventory to the RDO/LT Office/LT Division on or before July 31, 2024, indicating the number of booklets and corresponding serial numbers in duplicate copies. The Branch RDO receiving the copy must send the original to the Head Office RDO and maintain a duplicate copy.
3. Cash Register Machines (CRM) and Point-of-Sales (POS) Machines and E-receipting or Electronic Invoicing Software – Taxpayers using CRM/POS/E-invoicing may change the word “Official Receipt” to “Invoice”, “Cash Invoice”, “Charge Invoice”, “Credit Invoice”, “Billing Invoice”, or any other transaction name without notifying Revenue District Offices. The reconfiguration is a minor system enhancement that doesn’t necessitate the reaccreditation of sales software nor the reissuance of a Permit to Use by the taxpayer-user.
   
   Taxpayers using registered Computerized Accounting System (CAS) or Computerized Books of Accounts (CBA) with Accounting Records must revisit and update their system registration following existing policies and procedures to comply with the EOPT Act, as system enhancement directly affects financial aspect.
   
   Any adjustments for machine reconfiguration and AR enhancement must be completed on or before December 31, 2024, with extension approval from the Regional Director or Assistant Commissioner which shall be a maximum of six (6) months from December 31, 2024.
   
   The renamed Invoice issued by CRM/POS machines, e-receipting software, CAS or CBA with AR should start with the last series of the approved Official Receipt. Notice shall be submitted after the completion of reconfiguration/enhancement, indicating the serial number of the converted Invoice to the RDO/LT Office/LT Division within 30 days of machine/system reconfiguration/enhancement or on December 31, 2024, whichever comes first.
   
   From April 27, 2024, documents containing “Official Receipt” in CRM/POS machines, e-receipting software, CAS or CBA with AR are valid for claiming input tax until December 31, 2024, or until machine/system reconfiguration/enhancement, whichever comes first. Provided that there is no missing information and the system printed/generated “Official Receipt/Billing Statement/Statement of Account/Statement of Charges” is converted by striking through the term and stamping “Invoice/Billing Invoice” on the document.
4. Issuing “Official Receipt” for goods or services after December 31, 2024, or until machine/system reconfiguration/enhancement is completed or issuing manual/loose leaf “Official Receipt” without converting them to “Invoice” for sales starting April 27, 2024, is not considered evidence of sales and is considered failure to issue or non-issuance of Invoice required under Section 6(A). Failure to issue an Invoice may result in penalties of ₱1,000.00 to ₱50,000.00 and imprisonment of two to four years pursuant to Section 264(a) of the Tax code.