SECONDARY REQUIREMENTS

INDEX FOR REGISTRATION OF BOOK OF ACCOUNTS

DESCRIPTION
All corporations, companies, partnerships or persons required by law to pay internal revenue
taxes shall keep a journal and a ledger or their equivalents such as subsidiary ledgers,
simplified books of accounts.
INDIVIDUALS ENGAGED IN BUSINESS
Newly-Registered (In General)
Tax Form
BIR Form 1901 - Application for Registration for Self-Employed and Mixed Income
Individuals, Estates and Trusts
Documentary Requirements
a) Permanently bound books of accounts for registration/stamping or the bound
journals and/or ledgers;
b) Proof of Payment of Annual Registration Fee (BIR Form 0605) current year.
Procedures
a) Submit duly accomplished BIR Form 1901 at the RDO or concerned office under the
Large Taxpayer Service having jurisdiction over the place where the head office and
branch is located, respectively; and
b) Present the manual books of accounts for Stamping and registration purposes.
Deadline
Newly registered taxpayers shall present the manual books of accounts before use to
the RDO or concerned office under the Large Taxpayer Service where the place of
business is located for approval and registration.
As a general rule, registration of books of accounts shall be simultaneous with the
issuance of Certificate of Registration and approved Authority to Print.
Subsequent Registration of Books/Renewal (In General)
Tax Form
BIR Form 1905 - Application For Registration Information Update
Documentary Requirements
a) Photocopy of the first page of the previously registered books;
b) New bound journals and/or ledgers;

c) Proof of Payment Annual Registration Fee (BIR Form 0605) current year .
Procedures
a) Accomplish BIR Form 1905 at the RDO or concerned office under the Large Taxpayer
Service having jurisdiction over the place where the head office and branch is located,
respectively;
b) Present the manual books of accounts at the RDO or concerned office under the
Large Taxpayer Service where the place of business is located for Stamping and
registration purposes.
Deadline
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,
provided, that the portions pertaining to a particular year should be properly labeled
or marked by taxpayer. This means that it is not necessary for a taxpayer to
register/stamp a new set of manual books of accounts each and every year.

CORPORATIONS/PARTNERSHIPS
Newly-Registered (In General)
Tax Form
BIR Form 1903 - Application for Registration for Corporations/Partnerships (Taxable/NonTaxable) Including GAIs And LGUs
Documentary Requirements
a) Permanently bound books of accounts for registration/stamping or the bound
journals and/or ledgers;
b) Proof of Payment of Annual Registration Fee (BIR Form 0605) current year.
Procedures
a) Submit duly accomplished BIR Form 1903 at the RDO or concerned office under the
Large Taxpayer Service having jurisdiction over the place where the head office and
branch is located, respectively; and
b) Present the manual books of accounts at the RDO or concerned office under the
Large Taxpayer Service where the place of business is located for Stamping and
registration purposes.
Deadline
Newly registered taxpayers shall present the manual books of accounts before use to the
RDO or concerned office under the Large Taxpayer Service where the place of business is
located for approval and registration.

As a general rule, registration of books of accounts shall be simultaneous with the issuance
of Certificate of Registration and approved Authority to Print.
Subsequent Registration of Books/Renewal (In General)
Tax Form
BIR Form 1905 - Application For Registration Information Update
Documentary Requirements
a) Photocopy of the first page of the previously registered books;
b) Bound journals and/or ledgers;
c) Proof of Payment Annual Registration Fee (BIR Form 0605) current year.
Procedure
a) Submit duly accomplished BIR Form 1905 at the RDO or concerned office under the
Large Taxpayer Service having jurisdiction over the place where the head office and
branch is located, respectively; and
b) Present the manual books of accounts at the RDO or concerned office under the
Large Taxpayer Service where the place of business is located for Stamping and
registration purposes.
Deadline
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,
provided, that the portions pertaining to a particular year should be properly labeled
or marked by taxpayer. This means that it is not necessary for a taxpayer to
register/stamp a new set of manual books of accounts each and every year.

Note: With the implementation of the E-Commerce Law, the requirement of binding and
stamping of computerized books of accounts and/or receipts and invoices generated by a
duly approved CAS shall no longer be necessary, provided that:
Soft copy of the computerized books of accounts and
records/documents in Text File format shall be made available in:

other

accounting

- CD ROM (Read Only)

- Electronically archived information
A duly notarized certification in the form of an affidavit ascertaining/attesting the
accuracy of the number of receipts and invoices used during the year and soft copy of
books of accounts and other accounting records/documents in Text File Format stamped
received within thirty days (30) from the close of taxable year.
RELATED REVENUE ISSUANCES
RR No. 7-2012,

RMO No. 29-2002,

RMC No. 13-82,

RMC No. 82-2008

CODAL REFERENCE
Section 232 to 235 of the National Internal Revenue Code
INDEX FOR APPLICATION FOR AUTHORITY TO PRINT RECEIPTS & INVOICES
DESCRIPTION
All persons who are engaged in business shall secure from the BIR an Authority to Print receipts
or sales or commercial invoice before a printer can print the same.
TAX FORM
BIR Form 1906 (Jan 2000 ENCS) Application for Authority to Print Receipts and Invoices
DOCUMENTARY REQUIREMENTS
Job order
Final & clear sample
Photo copy of COR/paid ARF of TP & Printer
Last booklet or previous ATP
Permit to Use Loose-leaf, if applicable
Printers Certificate of Delivery (PCD)
PROCEDURES
For taxpayers:
a. Accomplish BIR Form 1906 and submit the same together with the documentary
requirements to RDO where the HO is located or concerned office under the Large
Taxpayer Service;
b. Keep/File PCD and ATP copy duly received/issued by BIR for audit purposes;
c. Taxpayers branch office shall furnish its RDO a copy of the ATP issued by the
appropriate BIR office having jurisdiction over the head office.
For the printer/supplier:
a. Prepare Printers Certificate of Delivery (PCD) in five (5) copies and submit to RDO
where the place of business is located or concerned office under the Large Taxpayer
Service within thirty (30) days from date of ATP and prior to delivery of receipts and/or
invoices to taxpayer;
b. Furnish the taxpayer and its branches copy of the received PCD and approved ATP
together with the taxpayers Sworn Statement within thirty (30) days from the
issuance of PCD. One copy thereof shall likewise be submitted to the BIR Office that
has jurisdiction over the head office of the printer.

DEADLINES
Secure Application for Authority to Print Receipts and Invoices on or before the
commencement of business

PENALTIES
AMOUNT OF COMPROMISE PENALTY
First Offense

Second
Offense

For failure to issue receipts or sales or commercial invoices

P10,000

P20,000

For refusal to issue receipts or sales or commercial invoices

25,000

50,000

For issuance of receipts that do not truly reflect and/or

contain all the information required to be shown therein

1,000

2,500

If the information missing is the correct amount of the

transaction

2,000

5,000

If the duplicate copy of the invoices is blank but the original

copy thereof is detached from the booklet

10,000

20,000

For possession or use of unregistered receipts or invoices

10,000

20,000

For use of unregistered cash register machines in lieu of

invoices or receipts

25,000

50,000

For possession or use of multiple or double receipts or

invoices

Not subject to Compromise

For printing or causing, aiding or abetting the printing of:

a) Receipts or invoices without authority from the BIR
b) Double or multiple sets of receipts or invoices
c) Receipts or invoices not bearing any of the following:
Consecutive numbers
Name of Taxpayer
Business Style
Business address of the person or entity to use the same
Taxpayer Account No.
Name, address, date, authority no. of the printer and
inclusive serial numbers of the batch or receipts printed
VAT No., if taxpayer is VAT-registered
For failure of the printer to submit the required quarterly
report under Sec. 238 of the Tax Code as amended

10,000

20,000

Not subject to Compromise

5,000

10,000

1,000

3,000

RELATED REVENUE ISSUANCES

RR No. 18-99, RR No. 12-2003
RMO No. 54-97, RMO No. 69-98, RMO No. 74-98, RMO No. 83-99, RMO No. 56-2000, RMO No.
28-2002
CODAL REFERENCE
Sections 113, 237 and 238 of the National Internal Revenue Code
FREQUENTLY ASKED QUESTIONS
1) How can the taxpayer determine if he is under a computerized or a non-computerized RDO?
Click Here for the List of Computerized and Non-Computerized
2) Who will stamp the printed receipts and invoices?
Stamping shall be done by the Taxpayer Assistance Section of the RDO having jurisdiction over
the establishment which will issue the invoice/receipt
3) What are the essential features of the receipts or invoices?
Invoices or receipts must be serially numbered and shall show, among others, the following:
Name of the Professional/Business/Commercial Establishment
Business Style business name
Taxpayer Identification No.
Business Address of the Person/Entity
Others like:
-

Space for date of transaction

Space for customer name and address
Serial Number of invoice or receipt
ATP Number and series approved
Printer information

4) What are the basic information required to be reflected on Invoices and Receipts issued by
Financial Institutions?
a) name, TIN (with suffix of the word VAT), business style, if any, and address of the financial
institution
b) date of transaction
c) name, TIN, business style, if any, and address of the VAT-registered client;
d) description of the nature of transaction
e) the invoice value or consideration, showing the VAT separately
f) total amount billed and received; and
g) such other information, as required in Section 237 of the Code.
5) Are tape receipts (cash register machine or point of sales machine tape) considered as an
official receipt/invoice?
Yes, as long as the tape receipts are generated from a BIR-registered CRM/POS, as evidenced
by the BIR sticker attached to the machine duly signed by the RDO.
INDEX FOR APPLICATION FOR AUTHORITY TO USE COMPUTERIZED ACCOUNTING
SYSTEMS AND/OR COMPONENTS THEREOF/LOOSE-LEAF BOOK OF ACCOUNTS:
ESCRIPTION
Computerized Accounting System (CAS) refers to the integration of different component
systems to produce computerized books of accounts and computer-generated accounting
records and documents.
TAX FORM
BIR Form 1900 - Application for Authority to Adopt Computerized Accounting System or
Components Thereof
DOCUMENTARY REQUIREMENTS

A. Initial Application to Adopt CAS And Or Components Thereof

- Accomplished BIR Form 1900 (Application for Authority to Adopt Computerized
Accounting System (CAS) and/or Components Thereof/Loose-leaf Books of Accounts, 2002
Enhanced version) and/or BIR Form 1907 (Application for Permit to Use Cash Register
Machine/Point of Sale Machine, 2002 Enhanced Version)
Company Profile:
-Photocopy of BIR Certificate of Registration
- Photocopy of Previously Issued Permit, if applicable
- Photocopy of Current Registration Fee Payment
- Location map of the place of business
- Inventory of previously approved unused Invoices and receipts, if applicable
- List of branches that will use CAS, if any
Technical Requirements:
- Application Name and Software Used (Development & Database)
- Functions and Features of the application
- System Flow/s
- Process Flow
- Back-up Procedure, Disaster and Recovery Plan
- Sworn Statement and Proof of System Ownership
- List of Reports and Correspondences that can be generated from the system with
their description, purpose and sample layout
- Facsimile of System
thereof/Receipts/Invoices

Generated

Loose-leaf

Books

of

Accounts

and

List

- Additional requirements in case of affiliated companies/sister companies, franchisees

and branches:
- Photocopy of previously issued permit for mother/sister company or another branch
using the same system, if applicable
- Certification from the Computerized System Evaluation Team (CSET), which
previously evaluated the approve system
B. Application For System Enhancement/Modification
- Photocopy of the previously issued Permit to Adopt CAS or Components Thereof; and
- Letter to the BIR detailing the enhancement/modification to be made on the previously
approved CAS or Components Thereof
PROCEDURES
A. For Initial Application
All Applications for Permit to Use CAS, whether by the Head Office or branches, shall be
filed at the RDO /LTAD I or II/LTDO having jurisdiction over the Head Office (HO) of the
taxpayer, except in the following cases:
1. The branch adopts CAS ahead of the HO - the application shall be filed by the
Branch with the RDO having jurisdiction over the Branch with a certification that the
HO does not use CAS. In the event that the HO later adopts the same CAS and the
branch with the previously issued permit shall be linked to it, the permit to be issued
to the HO shall include a new permit for the said Branch, which shall supersede the
previously issued permit.

2. The Branch adopts a different CAS from that of its HO - it shall apply for permit to
adopt CAS at the BIR office having jurisdiction over the Branch.
The Permit for CAS shall be issued after a demonstration of the applied system has been
evaluated and recommended for approval by the CSET.
B. For Application for System Enhancement/Modification on the Previously Approved CAS or
Components Thereof
Taxpayer submits a letter to the RDO or the concerned office of the LTS that previously
issued the permit to adopt CAS about the enhancement and/or modification on the system
together with a photocopy of the previously issued Permit to Adopt CAS or Components
thereof.
DEADLINES
Application for authority to use CAS must be filed before the system is used.
RELATED REVENUE ISSUANCES
RMO No. 21-2000 and RMO No. 29-2002
CODAL REFERENCE
Section 232 to 235 of the National Internal Revenue Code
FREQUENTLY ASKED QUESTIONS
1) What is a Computerized Accounting System (CAS)?
It is the integration of different component systems to produce computerized Books of Accounts
and computer generated accounting records and documents. (RMO 29-2002)
2) What are the components of CAS?
The components of CAS are:
a) General Journal and other subsidiary records
(Note: For General Ledger, though it is a component of CAS, taxpayer must apply for Permit to
Adopt a complete CAS)
b) Sales Book, Purchases Book, Accounts Receivable Book, Accounts Payable Book, Inventory
Book, Payroll Ledgers, Subsidiary Ledgers and other accounting records
c) Any application system which generates subsidiary ledger and is part of official accounting
documents such as official receipts (OR), sales and cash invoices, cash vouchers, journal
vouchers, billing statements, sales tickets, etc.
d) Any application system which generates reports required by the BIR (e.g. a separate report
for void and suspended transactions to explain the deduction from sale, compilation of their
integrated/consolidated sales report produced every end of the day); and
e) Point of Sale (POS) Machine/Cash Register Machine (CRM) connected to a network or linked
to CAS. (RMO 29-2002)
3) Who are required to apply for a Permit to Adopt CAS or Components Thereof?
a) Taxpayers who will use/adopt:
A complete CAS
Any or some of the components of CAS
e-Invoicing System
b) Taxpayers with valid permits to adopt CAS or component/s thereof but made systems
enhancement/modification that result to change in system release and/or upgrade in version
number. (RMO 29-2002)

4) Who shall apply for permit to use CAS or components thereof if taxpayers consultants
provided the system?
Taxpayers whose CAS are provided by their consultants (e.g. accounting firms) shall apply for a
separate permit for the use thereof. (RMO 29-2002)
5) In cases of affiliated companies, sister companies, franchisees and closely held corporations,
who shall apply for Permit to Use CAS or Components thereof?
Affiliated companies, sister companies, franchisees and closely held corporations shall secure
separate permits for the use of CAS at LTAD I or II, LTDO or RDO. This requirement is without
regard whether they are sharing a server and using exactly the same system previously
approved for use by its mother company or other sister companies. (RMO 29-2002)
6) Where should taxpayers apply for permit to adopt CAS or components thereof?
All applications for CAS or components thereof whether by Head Office or Branches shall be
filed by the Head Office at the Large Taxpayer Assistance Division (LTAD) I or II, Large Taxpayer
District Office (LTDO) and Revenue District Office (RDO) having jurisdiction over the taxpayers
Head Office except in the following cases:
In case the branch adopts CAS ahead of the Head Office, the application shall be filed by the
Branch with the RDO having jurisdiction over the branch with a certification that the Head
Office does not use a CAS. In the event that the Head Office later adopts the same CAS and the
branch with a previously issued permit shall be linked to it, the permit to be issued to the Head
Office shall include a new permit for the said branch, which shall supersede the previously
issued permit.
In case the branch adopts a different CAS from that of its Head Office, it shall apply for permit
to adopt CAS at the BIR office having jurisdiction over the branch (RMO 29-2002)
7) When should the application be filed?
The application for permit to use CAS should be applied before the system is used or the
enhanced system is adopted.
8) What are the documents required to be submitted in applying for Permit to Use CAS?
Accomplished BIR Form 1900 and/or BIR Form 1907
Photocopy of BIR Certificate of Registration
Photocopy of Previously Issued Permit, if applicable
Photocopy of Current Registration Fee Payment
Location map of the place of business
Inventory of previously approved unused invoices and receipts, if applicable
List of branches that will use CAS, if any
Application Name and Software used (Development and Database)
Functions and Features of the Application
System Flow/s
Process Flow
Sworn Statement & Proof of System Ownership
Back-up Procedure, Disaster and Recovery Plan

 List of Reports and Correspondences that can be generated from the system with their
description, purpose and sample lay out
Facsimile of System
Receipts/Invoices

Generated

Loose-leaf

Books

of

Accounts

and

List

thereof,

Photocopy of previously issued permit of mother/sister company, another branch using the
same system, if applicable
Certification from Computerized System Evaluation Team (CSET) which previously evaluated
the approved system, if applicable (RMO 29-2002)
9) Is the CSET limited to the requirements indicated in the checklist stated in RMO 29-2002?
As a general rule, yes, provided that CSET shall be allowed to ask for additional requirements if
the need arises during a system demo or upon evaluation of the application. Provided further,
that the taxpayer shall submit the additional requirements within the required period to process
the application otherwise, the same shall be denied.
10) Will the BIR issue a temporary permit for the use of CAS?
As a general rule, no temporary permit to adopt CAS shall be issued except upon approval of
the Deputy Commissioner for Operations Group. Temporary permit shall be issued only based
on valid and meritorious cases (e.g., systems enhancement that need to be done abroad)
The validity of temporary permit approved by the Deputy Commissioner of Operations may
either be shortened or renewed depending on the compliance on the reason(s) for issuance of
the temporary permit by the taxpayer. (RMO 29-2002)
11) After filing the application, when will the Permit to Adopt CAS and/or Components Thereof
be issued?
Application not requiring systems demo and no cross RDO evaluation 10 days
Application not requiring systems demo with cross 20 days
RDO evaluation
Application requiring systems demo with no cross 30 days
RDO evaluation
Application requiring systems demo with cross 40 days
RDO evaluation (RMO 29-2002)
12) In case there is an open case, would the issuance of permit be allowed?
Existence of open cases (stop-filer (RCS) cases, audit cases, accounts receivable (AR) cases,
etc.) in the name of the applicant-taxpayer should not be a hindrance to the issuance of the
permit to use CAS and/or Components thereof.
13) Will BIR hold the issuance of permit in case the taxpayer has a penalty payable, pending
collection or audit case?
No, the collection of the penalty or pending collection or audit case is not a condition precedent
in the issuance of permit.
14) In case there is a transfer of application to adopt CAS of the taxpayer from one district to
another, who shall issue the permit to adopt CAS?
In case the evaluation on the application for permit to adopt CAS or components thereof
requires a system demonstration, the RDO that performed the system demonstration shall
issue the permit to adopt CAS or components thereof. Otherwise, if system demonstration was

not yet conducted, the application including the corresponding documents submitted should be
forwarded to the transferee RDO within five (5) days upon receipt of notice of transfer who shall
then continue the processing of the application. The period to process shall start as day one
(1).
In cases where system demonstration is not required, the originating office where the
application for CAS was submitted shall issue the permit if at least 80% of the required period
(10, 20 days whichever is applicable) to process/issue the permit has been consumed.
Otherwise, the permit shall be issued by the transferee RDO.
15) In cases of applications for permit requiring Cross-RDO evaluation, who shall coordinate?
The CSET of the BIR office where the application was filed shall co-ordinate with the CSET of the
other concerned BIR Office in case of evaluation of application involving branch within the
jurisdiction of other office.
16) What is e-Invoicing (Electronic Invoicing System)?
The electronic invoicing system or e-Invoice System refers to the system developed and
maintained by the e-Buyer or e-Seller or both in issuing invoice electronically through the
Internet.
E-Invoice shall include sales invoice, official receipt, billing invoice, debit/credit notes or such
other similar accounting documents issued electronically through the internet.
17) Is Authority To Print (ATP) Receipts/Invoices still required if the taxpayer adopts CAS?
Yes. In case of systems downtime, taxpayer shall be required to use pre-printed receipts and
invoices with ATP which shall not exceed one thousand (1,000) sets or issue its remaining
receipts/invoices out of the inventory of previously approved unused manually printed receipts
and invoices. Also, in cases wherein the taxpayers system cannot generate official receipts and
invoices and the like, ATP shall be applied following RMO No. 28-2002. (RMO 29-2002)
18) In cases where taxpayers do not qualify under the guidelines on RR No. 10-99 and RMO No.
29-2002, what guidelines shall be imposed?
Applications for permit that do not qualify in either issuance shall be elevated to CSET for
proper evaluation and necessary recommendation.
19) Is the manual cash register machine sales book still to be maintained in case the taxpayer
adopts CAS?
Taxpayer with approved CAS capable of generating reports such as but not limited to daily
sales, accumulated sales, etc. need not be required to maintain manual Cash Register Machine
Sales Book provided that all information required in the manual CRM Sales Book are reflected in
the computerized reports.
However, these computerized reports shall be made available during post system evaluation of
CAS, or duly authorized tax audit of taxpayers records. (RMO 29-2002)
20) What are the procedures in the application/approval of the range of serial numbers to be
used for computer-generated receipts and invoices?
Taxpayers shall be required to fill up BIR Form No. 1907 in applying for the initial range of serial
numbers of computer-generated invoices/receipts which shall be issued.
For the 2nd and succeeding range of serial numbers to be issued in the generation of
invoices/receipts using a Global/National System of Environment, the following procedures shall
be followed:
a) Taxpayers with approved CAS adopting a Global/National System shall be required to fill

up Annex A (Application for Authority to Use the Range of Serial Number in Generating
Invoices/Receipts for a Global and National System of Environment) for the succeeding
range of serial numbers to be issued in generating computerized invoices/receipts;
b) The properly accomplished Annex A shall be submitted to the TSS of the BIR office
having jurisdiction over the taxpayers principal place of business;
c) The TSS shall receive the properly accomplished Annex A and evaluate the succeeding
range of serial numbers to be issued in generating invoices/receipts; and
d) After evaluation, the TSS shall prepare a Letter of Approval for the Range of Serial
Numbers to be Used in Generating Invoices/Receipts in a Global/National System
Environment (Annex B) for signature of approving official and shall issue it to the
taxpayer.
21) Are taxpayers with Global System and using invoices and receipts printed abroad, required
to seek advance approval of the range of serial numbers for said invoices/receipts?
No, taxpayers with Global System and using invoices and receipts printed abroad (BIR Ruling
No. DA 295-98) shall not be required to seek advance approval of the next set of pre-approved
range of serial number for use in the Philippines but shall present the pre-numbered invoices
and receipts to BIR concerned office for registration prior to their use. The invoices/receipts
herein referred to shall be tracked using office automation tools of the BIR Office.
For global system under which invoices and receipts are system-generated, the serial number
of invoices/receipts issued or used during the year shall be stated/presented in chronological
sequence of issuance by date of issue in the CD-ROM that will be registered, together with
other accounting records, with the BIR Office having jurisdiction over the taxpayer within 30
days following the end of the accounting period.
The taxpayer shall also submit a report on the range of serial numbers of receipts and invoices
which have been consumed and/or cancelled during the immediately preceding taxable year to
the concerned office within 30 days from the close of the taxable year (RMO 29-2002).
22) Is the taxpayer adopting a CAS required to maintain a hardbound computer generated
books of accounts, receipts and invoices and other accounting records and have them
stamped?
The requirement of binding and stamping of a hardbound computerized books of accounts,
receipts and invoices and other accounting records shall no longer be necessary provided that
the taxpayer shall submit an Affidavit on the Post Reporting Requirements for CAS in Lieu of
Hardbound Computer Generated Books of Accounts, Receipts and Invoices and other
Accounting Records/Documents (Annex N of RMO 29-2002) and a soft copy in text file format of
the books of accounts and other accounting records in CD-ROM properly labeled with the name
of taxpayer, taxable year and serial no. and volume no. of the books of accounts and other
accounting records, within 30 days from the close of the taxable year.
However, in case the taxpayer has no capability to submit in CD-ROM form, procedures under
the manual system shall prevail.
23) Where does a taxpayer with a permit to use CAS, register his books of accounts and submit
other accounting records?
The taxpayer shall register with the LTAD I or II, LTDOs or RDOs having jurisdiction over the
principal place of business of taxpayer.
24) Are taxpayers with web-enabled electronically generated receipts/invoices (e.g. payment
through credit card, payment through ATM and other similar web-enabled electronically
operated receipts/invoices) required to secure permit to adopt CAS?
Yes, taxpayer with web-enabled electronically generated receipts and invoices are required to
secure permit to adopt a complete CAS.

25) Who shall conduct the post system evaluation of the approved CAS of a branch?
The CSET of LTAD I or II, LTDO or RDO having jurisdiction over the Head Office of the branch
shall conduct the post system evaluation of the approved CAS, provided that there should be
proper coordination with the concerned CSET having jurisdiction over the branch.
26) If during the Post System Evaluation, the CSET members discovered that the taxpayer is
using a system other than that of the approved CAS or a modified version of the approved CAS,
would the recommendation for revocation of permit be final?
Yes, the revocation of the previously approved permit to use CAS shall be final and executory.
Hence, it is mandatory for the taxpayer to apply for a new permit.
27) Shall the CSET members be allowed to conduct post system evaluation in case taxpayers
modify/enhance its CAS?
The CSET shall have the authority to conduct post system evaluation through a Mission Order
that shall be secured prior to its conduct.
28) What shall be the alternative course of action by CSET members in case the taxpayer
prohibits them to check into its server during the post system evaluation?
The CSET members shall report the taxpayer to the Legal and Enforcement Service, Attention:
Tax Fraud Division.
29) Is the six (6) month period of interval from the date of approval of permit required before
the CSET can conduct post system evaluation?
There is no required period of interval to post evaluate the approved CAS of the taxpayer. The
CSET can conduct post system evaluation of the approved CAS as the need arises.
30) What are the guidelines/procedures for stamping the CDs of books of accounts and other
accounting records submitted by the taxpayer?
Taxpayer Service Section (TSS) shall:
a) Check if the CD is properly labelled (using the Checklist for checking CD Annex C) in
permanent ink with name, TIN, taxable year and the serial number and volume number of
the books of accounts and other accounting records/documents;
b) Scan the CD using the prescribed virus scan utilities (it should be virus free);
c) Get the file size (in case there are two (2) or more file for a month, it should be properly
labelled as volumes 1, 2, etc. of that particular month etc);
d) Open the file using any text editor (example: WordPad, Notepad, etc.);
e) Check the validity of the content of the file (it should be on a monthly basis and in a text
file format.)
f) If CD passes the check criteria, stamped the CD Registered with a permanent ink and
affix the signature of the BIR employee and the date
g) Return duly stamped CD to the taxpayer.
However, if any of the above requirements is not satisfied, return the CD to the taxpayer with
the CD Checklist indicating the reason for rejection.
31) What are the responsibilities of TSS in receiving the CD?
The TSS shall be responsible in the following:
a) Ensure that they have the latest version of the virus signature;

b) Raise all technical issues relative to the submission of the CD which should be forwarded
to RDC Helpdesk;
c) Monitoring the issues raised;
d) Keep the CD checklist for future use.
32) What is the difference between cash receipts and invoices under CAS and loose-leaf
receipts/invoices under the manual system?
As long as the contents of the receipts/invoices, in accordance with Sections 237, 238 and 113
of the Tax Reform Act of 1997, are generated by the system, taxpayers receipts/invoices shall
be considered under CAS.
Loose-leaf receipts/invoices under the manual system shall refer to invoices/receipts that are
not generated by CAS or components thereof. Hence, the CRM/POS machines not linked to CAS
used to generate receipts/invoices shall adhere to the provisions of Revenue Regulations No.
10-99.
33) Is it necessary for the RDO having jurisdiction over the branch that adopts a CAS to issue a
certification of the last serial number of Sales Invoice/Receipt consumed/cancelled?
The RDO having jurisdiction over the branch is not required to issue a certification of the last
serial number of Sales Invoice/Receipt consumed /cancelled. Instead, the Taxpayer shall inform
the BIR Office having jurisdiction over the branch by accomplishing Annex M of RMO No. 292002 (Report of the Range of Serial Numbers of Receipts and Invoices Consumed/Cancelled).
(RMO 29-2002)
34) Is modification of header of receipt allowed? Is modification of the header of accounting
reports allowed?
Modification of header of receipt shall be allowed provided that the taxpayer shall follow the
provisions of Sections 237 and 238 of the NIRC of 1997.
Modification of report header is allowed which shall depend on the taxpayers nature of
business. Provided however, that it should comply with Sec 232 of the NIRC and its
implementing Bookkeeping Regulations and other related issuances.
35) In cases of taxpayers adopting an Off The Shelf CAS, would there be a need to evaluate and
conduct Demonstration of the system?
In case there is prior evaluation and approval of an Off The Shelf CAS, hence a precedent
application, the system shall not undergo systems demonstration in its evaluation. Provided
that the Off the Shelf CAS has not been customized in any manner.
In this regard, a list of approved off-the-shelf CAS shall be monitored and provided by
Information System Group (ISG) to all the CSET members through a technical bulletin for proper
reference.
36) What is the jurisdictional limitation of the divisions under Large Taxpayer Service in the
issuance of permit to use CAS or components thereof?
LTAD I or II and LTDOs, are authorized to issue permit to use CAS or components thereof of
branches of identified taxpayers of LTAD I or II and LTDOs nation-wide. Provided however, that
the concerned RDO where the branch(es) is(are) located shall be properly notified and
necessary coordination shall be made.
INDEX FOR APPLICATION FOR PERMIT TO USE CASH REGISTER MACHINE (CRM)
AND/OR POINT OF SALES MACHINE (POS):
DESCRIPTION

A point-of-sale (POS) terminal is a computerized replacement for a cash register. Much more
complex than the cash registers of even just a few years ago, the POS system can include the
ability to record and track customer orders, process credit and debit cards, connect to other
systems in a network, and manage inventory. Generally, a POS terminal has as its core a
personal computer, which is provided with application-specific programs and I/O devices for the
particular environment in which it will serve. A POS system for a restaurant, for example, is
likely to have all menu items stored in a database that can be queried for information in a
number of ways. POS terminals are used in most industries that have a point of sale such as a
service desk, including restaurants, lodging, entertainment, and museums.
Increasingly, POS terminals are also Web-enabled, which makes remote training, and operation
possible, as well as inventory tracking across geographically-dispersed locations.
TAX FORM
BIR Form 1907- Application for Permit to Use Cash Register Machine/Point of Sale Machine
(2002 Enhanced Version)
DOCUMENTARY REQUIREMENTS
A. For Initial Application
For Stand Alone CAS or POS Machines (not linked to CAS)
1) Accomplished BIR Form 1907 Application for Permit to Use Cash Register
Machine/Point of Sale Machine (2002 Enhanced Version)
2) A joint sworn declaration by the applicant and the distributor/dealer or vendor of
the machines containing the following:
- Name, address, business name/style of the applicant, TIN of the applicant,
kind/line of business and the address where the machine shall be used
- Name, business style, address and TIN of the distributor/dealer or vendor of the
machine
- For CRM, brand, model, serial number and type of all its parts, whether
electronic or mechanical, whether with resettable or non-resettable accumulating
grand total, and whether new or second hand
- For POS machines, brand, model, serial numbers and type of all its parts,
whether new or second hand, and software to be used
- Maximum accumulating sales capacity
- Reset Counter number; and,
- Other essential features
3) Photocopy of proof of payment of Registration Fee
4) Photocopy of Certificate of Registration (COR) issued by BIR
5) Photocopy of Certificate of Registration of business style/name issued by DTI (in
case of individual) or a copy of SEC Registration (in case of corporation);

6) Sample receipts for a no sale transactions identified to the particular issuing

machine legibly showing the heading (company logo, business name, trade name,
proprietors name if applicant is single proprietor, address where the machine is going
to be used including branch identification) consecutive receipt numbers and date;
7) Sample receipt showing the reading of the accumulated grand total recorded in the
machine, and in case of electronic and POS machines, the reset counter number;
8) For machine with resettable accumulating grand total, all the proprietors reset keys
and/or copy of the software to be used in the actual operation of the POS machines
and customizations made thereto; and
9) Operating Manuals.
CRM/POS Machines linked to CAS
1) Company Profile:
- Photocopy of BIR Certificate of Registration
- Photocopy of Previously Issued Permit, if applicable
- Photocopy of Current Registration Fee Payment
2) Location map of the place of business
3) Inventory of previously approved unused Invoices and receipts, if applicable
4) List of branches that will use CAS, if any
5) Technical Requirements:
- Application Name and Software Used (Development & Database)
- Functions and Features of the application
- System Flow/s
- Process Flow
- Back-up Procedure, Disaster and Recovery Plan
- Sworn Statement and Proof of System Ownership
- List of Reports and Correspondences that can be generated from the system
with their description, purpose and sample layout
- Facsimile of System Generated Loose-leaf Books of Accounts and List
thereof/Receipts/Invoices
6) Additional Requirements in case of affiliated companies/sister companies,
franchisees and branches:

- Photocopy of Previously Issued Permit for mother/sister company or another

branch using the same system, if applicable
- Certification from the CSET which previously evaluated the approve system
B. CRM/POS Machines
Removal/Withdawal

For

Repair,

Upgrade,

Change,

Modification,

Update

Or

Prior to machine repair, upgrade, change, modification or update

a) Written notice to the RDO/LTAD I or II/LTDO that issued the previous permit
After the machine repair, upgrade, change, modification or update
a) New Application Form
b) Joint Sworn Statement executed by the proprietor and the person who made the
repair
In case of removal/withdrawal of the machine
a) Written notice to the RDO/LTAD I or II/LTDO that issued the previous permit
PROCEDURES
A. Initial Application
- For Stand Alone Cash Register Machine (CRM) or Point Of Sales (POS) Machine (not linked
to CAS)
File duly accomplished BIR Form 1907 Application for Permit to Use Cash Register
Machine/Point of Sale Machine, (2002 Enhanced Version) with the RDO within whose
jurisdiction the business establishment where the machine will be used is located.
- For Cash Register Machine (CRM) /Point of Sales Machine (POS) Machines linked to
Computerized Accounting System (CAS)
File duly accomplished BIR Form 1907 Application for Permit to Use Cash Register
Machine/Point of Sale Machine, (2002 Enhanced Version) with the RDO/LTAD I or
II/LTDO within whose jurisdiction the business establishment where the machine will
be used or located RDO/LTAD I or II/LTDO having jurisdiction over the Head Office (HO)
except for the following cases:
- In the case the branch adopts CAS ahead of the HO, the application shall be filed by the
Branch with the RDO having jurisdiction over the Branch with a certification that the HO
does not use CAS. In the event that the HO later adopts the same CAS and the branch with
the previously issued permit shall be linked to it, the permit to be issued to the HO shall
include a new permit for the said Branch, which shall supersede the previously issued
permit.
- In case the branch adopts a different CAS from that of its HO, it shall apply for permit to
adopt CAS at the BIR office having jurisdiction over the Branch.
B. Repair, Upgrade, Change, Modification, Update, Removal/Withdrawal

a) Repair, upgrade, change, modification or update of the machine/s

- Prior to repair, upgrade, change, modification or update
Taxpayer files written notice to the RDO/LTAD I or II/LTDO that issued the previous
permit
- After the repair, upgrade, change, modification or update
Taxpayer shall submit new BIR Form 1907 together with the required documents
to the RDO/LTAD I or II/LTDO that issued the previous permit.
b) Removal/withdrawal of the machine/s
- Taxpayer files written notice to the RDO/LTAD I or II/LTDO that issued the previous
permit
DEADLINES
Before using Cash Register Machine (CRM) and/or Point of Sales Machine (POS)
RELATED REVENUE ISSUANCES
RR No. 10-99 and RMO No. 29-2002
CODAL REFERENCE
Sec. 237 of the National Internal Revenue Code
FREQUENTLY ASKED QUESTIONS
1) What is Point-Of-Sale (POS) Terminal?
A point-of-sale (POS) terminal is a computerized replacement for a cash register. Much more
complex than the cash registers of even just a few years ago, the POS system can include the
ability to record and track customer orders, process credit and debit cards, connect to other
systems in a network, and manage inventory. Generally, a POS terminal has as its core a
personal computer, which is provided with application-specific programs and I/O devices for the
particular environment in which it will serve. A POS system for a restaurant, for example, is
likely to have all menu items stored in a database that can be queried for information in a
number of ways. POS terminals are used in most industries that have a point of sale such as a
service desk, including restaurants, lodging, entertainment, and museums.
Increasingly, POS terminals are also Web-enabled, which makes remote training, and operation
possible, as well as inventory tracking across geographically dispersed locations.

2) What is Cash Register Machine (CRM)?

Cash Register Machine uses a firmware, which is installed on a chip called electronic
programmable Read only Memory (EPROM). In electronic engineering, the term firmware is
interpreted as a program which is burned on a non-volatile memory, and which is used for the
organization of an exactly defined field of application. A machine-near program code ensures
shortest execution times and highest operation- and data security. Compared with traditional

PC-systems, the hardware of firmware-controlled machines is usually specially made, what

enables to take also ergonomic requirements into consideration.

3) What is CRM/POS Machines Linked to CAS?

Cash Register Machines/Point of Sale Machines that are electronically connected to a CAS or
connected to a CAS through a central server via network.

4) In applying for permit to use CRM/POS machines linked to CAS, is it part of the procedure
that it should pass the Case Monitoring System (CMS) of the Bureau?
For monitoring purposes, LTAD I and II, LTDOs and computerized RDOs shall create a case for
the CRM/POS Machines in the CMS and assign the same to a case officer prior to the
preparation and issuance of the corresponding stickers. The corresponding template for
CRM/POS shall likewise be filled out by the case officer assigned. (RMO 29-2002)

5) Is automatic resetting of the range of serial numbers on POS machines allowed?

As a general rule, automatic resetting of serial numbers on POS machines is not allowed.

6) What BIR issuance/guidelines shall be applied in processing application for use of CRM/POS
machines not linked to taxpayers CAS? Is it RMO No. 29-2002 or RR No. 10-99?
Application for use of stand-alone (not linked to CAS) POS Machine/CRM shall be processed
under the provisions of RR No. 10-99 or any later regulations that may be issued amending RR
No. 10-99. (RMO 29-2002)

7) What does a pool of CRM/POS machines mean?

These are CRM/POS machines reserved for use during peak season by the taxpayer and which
shall be registered under the Head Office. These machines shall only be allowed to be
transported and be used in rove around the branches of the taxpayer upon written approval
from BIR concerned office having jurisdiction over the Head Office on the corresponding
CRM/POS machines stating therein the duration of use and the branch/place where said
machines shall be used. (RMO 29-2002)

8) Will the taxpayers be allowed to have or maintain a pool of Cash Register Machines
(CRM)/Point of Sale (POS) machines linked to CAS?
Yes. Taxpayers that opt to maintain a pool of CRM/POS Machines in their business operations
during peak season (stand-by/roving machines) shall identify such in their applications. These
machines shall be treated as Head Office machines and shall be issued permits by LTAD I or II,
LTDO or RDO having jurisdiction over the Head Office. Only CRM/POS machines belonging to
the pool shall be allowed to be transported for use in the branches or to any place of business
of the taxpayer.
Transfer to the taxpayers branch/es of CRM/POS machines belonging to the pool shall be
subject to the approval of LTAD I or II, LTDO or RDO having jurisdiction over the Head Office,
which shall then inform the branch/es RDOs where the machines shall be used. (RMO 29-2002)

9) Is the roving of stand -alone POS machines allowed?

Roving of stand-alone CRM/POS machines is not allowed. Only POS machines linked to CAS
belonging to the pool may be transferred to the taxpayers branch/es or other place of
business. (RMO 29-2002)

10) How do we monitor pool of CRM/POS machines?

The taxpayer shall give prior notice to the BIR that the CRM/POS machines shall be transferred
from Head Office to its branch. (RMO 29-2002)

11) How can we identify machines belonging to the pool of CRM/POS machines?
The pool of CRM/POS machines is registered under the Head Office. To properly identify the
CRM/POS machines belonging to the pool, the issuing BIR office shall indicate in the Permit to
Use Cash Register Machine (CRM) or Point of Sale (POS) Machine (Annex G of RMO 29-2002)
after the box for Head Office the word Pool in parenthesis. [e.g. Head Office (Pool)].

12) Who shall issue stickers for CRM/POS machines linked to CAS?
Stickers for CRM/POS machines linked to CAS shall be issued by the following:
For machines to be used by the branch/es
By the BIR office having jurisdiction over the branch/es upon presentation by the
taxpayer and submission of a copy of the Branch Permit issued by the BIR office
having jurisdiction over the Head Office.
For machines to be used by the Head Office and those belonging to the pool
By the BIR office having jurisdiction over the Head Office. (RMO 29-2002)

13) How can the CRM/POS Machines stickers issued under RMO No. 29-2002 and RR No. 10-99
be distinguished?
A template for the CRM/POS machines sticker was provided in RMO No. 29-2002. This shall
serve as a format that shall distinguish the stickers issued under RMO No. 29-2002 from that
issued under RR No. 10-99.

14) Is the manual cash register machine sales book still to be maintained in case the taxpayer
adopts CAS?
Taxpayer with approved CAS capable of generating reports such as but not limited to daily
sales, accumulated sales, etc. need not be required to maintain manual Cash Register Machine
Sales Book provided that all information required in the manual CRM Sales Book are reflected in
the computerized reports.

However, these computerized reports shall be made available during post system evaluation of
CAS, or duly authorized tax audit of taxpayers records. (RMO 29-2002)

15) For Stand Alone POS Machine that can generate a detailed Cash Register/POS Machine
Sales Report, would the taxpayer still be required to maintain a Cash Register Sales Book?
Taxpayer with stand alone POS Machine not linked to CAS is still required to maintain a Cash
Register Sales Book except when said taxpayer applies for a permit to use a Component of CAS
on Sales, provisions under RMO 29-2002 shall be adhered to.
16) Under what issuance applications for permit to use vending machines shall be processed?
Applications for permit to use Vending Machines shall be processed following the provisions of
RR No. 10-99.