BIR gives merchants until year-end to upgrade receipt-issuing machines

MANILA, Philippines – More time has been given to establishments still using thermal paper for receipts to convert to other papers and reconfigure their systems.

Under Revenue Regulations 6-2016 dated Aug. 16, the Bureau of Internal Revenue (BIR) extended the deadline for select cash register machines (CRMs) and point-of-sale (POS) to make the necessary adjustments.

“In order to provide ample time procuring, reconfiguring machines and systems...adjustments shall be undertaken on or before Dec. 31, 2016,” the regulations said.

This will cover CRMs and POS registered with the BIR prior to July 1, 2012 until June 30, 2013. The original deadline was Sept. 1 this year.

The latest order amended RR 10-2015 which mandated all receipt-issuing machines to use non-thermal papers to produce proof of sales.

After the new deadline lapses, any extension will be granted upon evaluation of specific requests, but this will “not be longer than six months” from the effectivity of the new order or only until March 2017.

Sought for comment, BIR assistant commissioner Marissa Cabreros said it is important that all CRMs and POS undergo the shift.

“It’s best to use non-thermal paper especially for taxpayers claiming the payment as deduction because the proof of expense is preserved longer,” Cabreros said in a text message.

This is because texts printed on thermal papers tend to “easily fade out,” hence, making it difficult to verify claims for deductions or refunds as needed, she explained.

Cabreros said she does not have data on how many POS or CRM nationwide have yet to follow the order.

Under the original 2015 regulations, other machines registered with BIR from July 1, 2013 to June 30, 2014 have a longer deadline to change until July 1 next year.

Those put up from July 1, 2014 onwards are given until July 1, 2018.

CRMs and POS are used to issue receipts for sales transactions as proof of value-added tax (VAT) payment and remittance made by the establishments to the government.