RR No. 11-2004: Prescribes the rules and regulations on the accreditation, registration and use of Cash Register Machines, Point-of-Sale Machines and/or Business Machines Generating Receipts/Invoices

Summary

RR No. 11-2004 sets the rules on accreditation, registration and use of Cash Register Machines (CRM), Point-of-Sale (POS) Machines and other business machines that generate receipts or invoices.

Key points

1. Permits to Use. Only CRMs/POSs that meet the machine specifications in Section 5.0 and are duly registered get a Permit to Use. Permits issued before the Regulations stay valid until the CIR revokes them, provided the establishments comply with reportorial requirements to be set in a separate Revenue Regulations.
2. Immediate use without BIR inspection. A business may use a machine at once if its model is accredited and the supplier has registered it under Section 9.0. If the model is not accredited but fully complies with Sections 5.0 and 6.0, the owner or manager may register it and receives a provisional authority to use.
3. Inspection and seizure. The BIR may inspect any registered machine during store hours, and store personnel must present it. A machine using immediate use that is later found non-compliant may be subject to seizure.
4. Machine specifications. Machines need a non-resettable accumulating grand total of at least 10 digits (12 including decimal points), must be tamper free, and need non-volatile memory or a back-up system. They must also report VAT and non-VAT sales separately, and a CRM needs 2 rollers. Manufacturers, dealers or vendors attest to compliance by sworn statement.
5. Receipt and invoice data. Receipts must show items such as business name, TIN (12 digits including Branch Code), receipt number (minimum of 6 digits) and the words THIS SERVES AS AN OFFICIAL RECEIPT. Buyer details are not required, but a VAT-registered purchaser whose details the machine cannot print must request a manual receipt with approved ATP, or its input tax claim will be disallowed.
6. Accreditation, registration and internal control use. Suppliers apply for accreditation of each brand-model/software with the NMAB or RMAB, and must register each machine for the buyer not later than 5 days from the date of sale and before use. A Summary List of Machines Sold is due within 15 days from the end of each taxable quarter. A machine may also be used only for internal control if registered receipts or invoices are issued for every sale and a warning poster is displayed.

Who is affected

• Suppliers, distributors, dealers and vendors of CRM/POS machines
• Business establishments using CRM/POS machines
• Purchasers who are VAT-registered

Deadlines and effectivity

• Machine registration: not later than 5 days from date of sale
• Summary List of Machines Sold: within 15 days from end of each taxable quarter
• Approval of next grand total: within 30 days before full consumption of the previous one

Summary by Tax Resources PH. It is not a substitute for the full text of the issuance or professional advice.