GUIDELINES ON THE PROPER SALE AND AFFIXTURE OF LOOSE DOCUMENTARY STAMPS TO TAXABLE DOCUMENTS

BACKGROUND
 
To address the unavailability of loose stamps and the technical and operational inadequacies of Documentary Stamp Electronic Imprinting Machine (DSEIM), the Revenue Memorandum Order (RMO) No. 13-2008 was issued to prescribe the use of Constructive System/Receipt Systems (CS/RS) for certificates issued by government agencies and its instrumentalities. RMO No. 14-2008 likewise prescribes the temporary use of CS/RS to address the loading limitation of DSEIM until it was revoked on January 1,2010 when the eDST System was implemented.
 
Revenue Regulations (RR) No. 7-2009 identified industry sectors mandated to use the eDST System, however certain taxpayers failed to use the said system as they either continued to use the CS/RS or purchased and affixed loose documentary stamps on their taxable documents.
 
Further, the following incidents were recently reported to the Bureau of Internal Revenue (BIR):
  1. Sale of loose DST through online platforms or physical stores.
  2. Affixture of both spurious eDST system-printed stamps and loose documentary stamps to taxable documents. 
  3. Affixture of loose documentary stamps to taxable documents by eDST System taxpayers-users instead of the system-generated stamp.
  4. Affixture of loose documentary stamps to taxable documents with DST due of more than ₱15.00 (now ₱30.00) in violation of RR No. 15-2001.
 
GUIDELINES ON THE PROPER SALE AND AFFIXTURE OF LOOSE DOCUMENTARY STAMPS
 
To address these incidents, this Circular is issued to prescribe the following policies and procedures:
  1. The affixture of loose documentary stamps to taxable documents shall not apply to the following taxable documents/transactions:
 
  1. One-Time Transaction (ONETT)
  2. Taxable documents issued in the regular operations of mandated taxpayers-users of the eDST System
  3. Certificates covered by the CS/RS under RR No. 2-2023
 
  1. Loose documentary stamps shall only be purchased from and sold by the authorized Specialized Revenue Collecting Officers (SRCO)/Revenue Collection Officers (RCO) assigned at the National Office and Revenue District Office (RDO) of this Bureau.
 
The SRCO/RCO shall generate Collection, Remittance and Reconciliation of the Internal Revenue Integrated System (CRR-IRIS), an electronic Revenue Official Receipt (eROR) or manual ROR, in case of unavailability of the Mobile Revenue Collection Officer System (MRCOS) and/or Collection Officer Receipting Device (CORD). This is so that the daily proceeds from the sale of loose documentary stamps are uploaded as collections to the Collection and Bank Reconciliation of Integrated System (CBR-ITS). The SRCO/RCO shall use the Taxpayer Identification Number of the RDO in the issuance of said receipts, and the inclusive series of the loose documentary stamps sold shall be indicated in the “REMARKS” field of the MRCOS.
  1. A single piece of loose documentary stamp shall only be purchased and sold by the SRCO/RCO for each taxable document with DST due of not exceeding ₱30.00, with the SRCO/RCO undertaking the following procedures:
    1. Require the presentation of the original copy of the duly signed taxable documents to which the documentary stamp tax is to be affixed.
    2. Affix the loose documentary stamp to the lower portion of the taxable document.
    3. Cancel the stamp by writing two lines across the stamp and extending to portions of the document to which it is affixed, and indicating the date of affixture by perforation
    4. Release the taxable document with the duly cancelled documentary stamp.
    5.  
      However, for those taxpayers who issue taxable documents with tax due of not more than ₱30.00 such as schools and universities, except those taxpayers who are using the eDST System and those taxpayers covered by RR No. 2-2023, they shall be allowed to purchase two or more pieces of loose documentary stamps, provided that the following requirements shall be complied with:
       
    6. The taxpayer shall submit to the SRCO/RCO a written letter with its official letterhead duly signed by the taxpayer or its authorized representative requesting the purchase of loose documentary stamps, with the following information:
      1. Name and address of the requesting taxpayer
      2. Taxpayer Identification Number
      3. Number of loose documentary stamps being purchased
      4. The purpose for which the loose documentary stamps shall be used
      5. Name of taxable document on which the loose documentary stamps shall be affixed to
    7.  
      In subsequent purchases, the previously purchased stamps shall be liquidated and included in the letter, as follows:
       
      Beginning Balances Stamp Purchased Stamps Affixed Ending Balances
      Count Serial Numbers Count Date Count Period Covered Serial Numbers Count Serial Numbers
                       
                       
       
    8. The SRCO/RCO shall issue an eROR or manual ROR with the amount equivalent to the total value of the loose documentary stamps being purchased
    9. The SRCO/RCO shall issue ONLY loose documentary stamps in sequential serial numbers for bulk purchases of these stamps. Accordingly, the SRCO/RCO shall maintain two (2) separate sheets of stamps with one sheet assigned for single-piece purchases of stamps and the other sheet for bulk purchases of stamps.
    10. Based on the information, indicated in the purchase letters of the taxpayers, a record, in hard or soft copy, shall be maintained by the SRCO/RCO using the following format[See illustration on the next page]
TP Name Address TIN Beginning Balances No. of Stamps Purchased No. of Stamps Affixed Ending Balances
Count Serial Nos. Count Date Count Period Covered Serial Nos. Count Serial Nos.
                       
 
 
  1. Original copies of surety bonds issued for excise tax purposes with documentary stamps imprinted by the eDST System shall not be accepted and recorded by the concerned offices of this Bureau, unless the name of the issuing company has been validated from the concerned revenue office as a duly enrolled taxpayer to the eDST System and the DST due from the surety bond is deducted from the taxpayer’s ledger in the said system.