IN THE RECENT Ranking of Economies (based
on Ease of Doing Business) conducted by the World Bank Group, the
Philippines ranked 138th out of 185 countries worldwide. The ranking is
indicative of how conducive it is to start and operate a business in
each country. Particularly, the same study showed that when it comes to
starting a business, the Philippines ranks 161st out of 185 economies.
These data would seem to indicate that investors generally find it
difficult to start a business in the Philippines. This perception may be
due to various reasons such as complex registration procedures and
numerous regulatory and compliance requirements which must be complied
with before anyone can start a business in the Philippines. One such
important requirement is securing the necessary authority to print
invoices and/or official receipts from the Bureau of Internal Revenue
(BIR).
Section 237 of the Tax Code provides that
all persons who are engaged in business in the Philippines are required
to issue duly-registered invoices and/or official receipts. The printing
of said invoices and receipts is not a straightforward procedure since
it requires prior authorization from the BIR. Moreover, printing of
these documents can only be done by printers who are duly-accredited by
the BIR, in accordance with Section 238 of the Tax Code.
Further to these requirements under the Tax Code, Revenue Regulations
(RR) No. 18-2012, issued by the BIR on Oct. 22, 2012, provide for the
guidelines and requirements in processing of Authority to Print (ATP)
Official Receipts (ORs), Sales Invoices (SIs) and other Commercial
Invoices (CIs). RR No. 18-2012 provides for on-line processing of ATPs
that would involve fully automated application, generation, approval and
issuance of the ATP through a web-based (on-line) ATP System. As of
to-date, however, the On-line ATP System is not yet fully developed.
In the meantime that the On-line ATP System is not yet available, the
BIR, through Revenue Memorandum Order (RMO) No. 12-2013 dated May 2,
2013, issued additional guidelines and procedures in the processing of
applications for ATP ORs, SIs and other CIs, applicable to taxpayers
that still use manually-issued receipts/invoices. It is important to
note that businesses issuing receipts through Cash Register Machine/
Point-Of-Sale Machines (CRM/POS) and/or Computerized Accounting System
(CAS) will be covered by separate guidelines.
RMO No. 12-2013 reiterates the rule that only BIR Accredited Printers
are allowed to print principal and supplementary receipts and invoices,
upon issuance of the ATP by the BIR. The printed invoices/receipts must
also show all the relevant information stated in the RMO, which include a
breakdown of the transaction if such amounts involve a mix of
transactions (i.e. VATable sales, VAT amount, Zero-rated sales, and VAT
Exempt Sales). For non-VAT ORs/SIs and other CIs, the phrase "THIS
DOCUMENT IS NOT VALID FOR CLAIM OF INPUT TAX" should be conspicuously
printed in bold letters. Taxpayers not subject to VAT or Percentage Tax
shall issue non-VAT principal receipts/invoices indicating at the face
of the receipt/invoice the word "EXEMPT". Furthermore, taxpayers subject
to percentage tax shall provide the breakdown of Sales Subject to
Percentage Tax (SSPT) and Exempt Sales. Other information relevant to
the taxpayer may be included in the invoice/receipt.
In addition, the following should be printed at the bottom portion of the OR/SI/CI:
• Name, address and TIN of the accredited printer;
• Accreditation number and date of accreditation of the accredited printer;
• ATP number, OCN, date issued (month/day/year) and valid until (month/day/year);
• BIR permit number (if loose leaf OR/SI/CI);
• Approved inclusive serial number;
• Security/special markings/features of the accredited printer; and
• The phrase "THIS INVOICE/RECEIPT SHALL BE VALID FOR FIVE (5) YEARS FROM THE DATE OF THE ATP".
In the case of taxpayers transacting business with senior citizens and
persons with disabilities (PWD), the invoices and/or receipts should
state the customer’s Senior Citizen tax identification number (TIN),
Office of the Senior Citizens Affairs (OSCA) ID No./PWD No., Senior
Citizen Discount/PWD Discount, as the case may be, and show his/her
signature.
As provided under RMO No. 12-2013, in the interim, ATP applications
shall be processed using the Registration System of the Integrated Tax
System (ITS). The taxpayer should submit its inventory listing and
surrender hard copies of unused/expired receipts/ invoices together with
photocopies of the old and new ATPs and corresponding Printer’s
Certificate of Delivery (PCD) to the Revenue District Office (RDO) where
it is registered. The old BIR Form 1906 for ATP applications shall be
used until the revised form becomes available, and the prescribed
standard forms, such as the Sworn Certification of the Printer, sample
format of ORs/SIs/CIs, Inventory List of Unused/Expired Principal and
Supplementary Receipts and Invoices shall be used by the authorized
printers and the taxpayers. The taxpayer is likewise required to choose
its printer from the list of accredited printers in the BIR Web site.
When the application has been approved by the RDO/LT office, the
taxpayer may claim the actual ATP, which will serve as a guide/reference
for accredited printers, containing the date of ATP, validity period,
printer’s accreditation number, and date of accreditation.
RR No. 18-2012 also provides for an extension for expiring receipts
provided that they apply for a new ATP not later than 60 days prior to
the actual expiry date. Further, the transitory provisions of RMO No.
12-2013 provide that all unused or unissued receipts and invoices
printed prior to the effectivity date of RR No. 18-2012 (which was on
Jan. 18, 2013), shall be valid only until June 30, 2013. Taxpayers are
therefore required to surrender the expired ORs, CIs, and SIs to their
respective RDO on or before July 10, 2013 for destruction, together with
an inventory listing of these unused/unissued receipts and invoices
submitted to the BIR.
Another significant provision of the RR and RMO is that compliant
receipts, or all those new sets of receipts/invoices to be printed under
the requirements of the new guidelines, shall also only be valid until
the full usage of the approved serial numbers or five years from its
issuance, whichever comes first. After such period all
unused/expired/expiring receipts/invoices shall also be surrendered to
the respective RDO for destruction on or before the 10th day of the
month following the validity of the expired receipts/invoices. This is a
requirement not mandated previously. Although theoretically, putting
strict validity requirements might curb the unscrupulous use of invoices
or receipts, it would obviously entail more time and effort for
taxpayers in accounting for all such invoices and receipts. This means
additional costs on the part of taxpayers already over-burdened with
regulatory requirements and procedures in the course of their doing
business.
The author is a manager at the Tax Services Department of Isla Lipana
& Co., the Philippine member firm of the PricewaterhouseCoopers
global network. Readers may call 845-2728 or e-mail the author at maria.carmelita.v.torres@ph.pwc.com for questions or feedback.
Views or opinions presented in this article are solely those of the
author and do not necessarily represent those of Isla Lipana & Co.
The firm will not accept any liability arising from such article; the
author will be personally liable for any consequent damages or other
liabilities.
source: Businessworld
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