RMO No. 10-2005: Prescribes the policies and procedures in the accreditation of Cash Register Machine (CRM), Point of Sale (POS), other sales machines including sales receipting system software as well as registration for the use thereof pursuant to RR Nos. 11-2004 and 5-2005

Key points

1. Accreditation of suppliers. All suppliers, including pseudo suppliers, must have their machines or software accredited before distribution, sale or use. The application is a Sworn Statement filed with the LTAD I or II, LTDO or RDO having jurisdiction over the supplier’s Head Office. Previously accredited models are exempt from systems demonstration, and a Certificate of Accreditation is issued within 1 day from complete documents.
2. Repairs and machine features. Suppliers must notify the BIR office in writing of any minor or major repairs, and a major repair or enhancement requires new accreditation and a new accreditation number. Machines must not be switched to training mode or no sale transaction mode, and reprinted receipts must show REPRINT ONLY with the date and time. A CRM has a minimum of six (6) digits of OR/Invoice Number, though four (4) digits with at least two (2) digits visible/programmed reset counter qualify.
3. Revocation of accreditation. The Certificate may be revoked if a Tax Compliance Verification Drive (TCVD) or post audit finds tampering with the Certificate, misrepresentation in the Sworn Statement, or violation of the accreditation policies under RR No. 11-2004 and the Order.
4. Registration and Permit to Use. Only machines compliant with RR No. 11-2004 get a Permit to Use, with a Permit Number and Machine Identification Number (MIN) for each. An accredited supplier registers not later than 5 days from date of sale and before use. A taxpayer-user who bought from a non-accredited supplier must register the machine himself.
5. Use and changes to registered machines. A machine is used for only one line of business under the Permit, unless the Commissioner authorizes a machine that records different lines of business. The user must give prior written notice before changing business name, use or location, or before major repairs or upgrades, and a Joint Sworn Statement is submitted after major changes. Withdrawal by retirement or sale needs prior approval.
6. Provisional permit and inventory of stocks. For a previously unaccredited but compliant model, the user registers it and gets a systems-generated Provisional Permit to Use, with a post evaluation within 3 months. The BIR may inspect machines and revoke permits for data tampering, unapproved major changes, or violations of the registration policies. Suppliers must submit by May 30, 2005 an inventory of non-compliant machine stocks with a timetable for their consumption and sale.

Who is affected

• Suppliers of CRM, POS and other sales machines and receipting software
• Taxpayer-users of registered sales machines

Deadlines and effectivity

• Certificate of Accreditation: issued within 1 day from complete documents for previously accredited machines
• Registration of machine: not later than 5 days from date of sale
• Post evaluation of Provisional Permit: within 3 months
• Inventory of non-compliant machine stocks: on or before May 30, 2005