Registration Bookkeeping Invoicing Presented by MS GLORY JANE

Registration, Bookkeeping & Invoicing Presented by: MS. GLORY JANE H. BRIONES Revenue Officer Revenue District No. 112, Tagum City

Registration � Legal Basis Section 236 of the 1997 Tax Code Relevant Revenue Issuances RR 11 -2008 dated Aug. 15, 2008

Process Flow for Registration Primary Stage Apply for TIN Persons who may secure TIN Application Form Documentary Requirements Accomplish Registration Form Documentary Requirements Submit to TSS Comp lete? Issue TIN Second Stage Reject Application Submit to appropriate RDO Issue COR

Persons Who May Secure TIN � Any person subject to any national internal revenue tax � Any person required to withhold taxes on account of his income payments � Any person who makes, renders or files a return, statement or other document whereby he/it is required to indicate his/its TIN � Application to open bank account, loan with banks, financial institutions & other intermediaries

Persons Who May Secure TIN � Application for Mayor’s Permit � Application for business license with DTI � Other documents � Any person required to secure TIN by virtue of EO No. 98

Documentary Requirements for TIN Application � Individual – Birth certificate or any ID card that will show applicant’s complete name, address, proof of birth, and signature. For a married woman: marriage contract shall be required. � Non-individual – 1. proof of authority of authorized representative 2. Corporation – SEC Certificate, Articles of Corporation/Partnership

Documentary Requirements for TIN Application � Non-individual 3. 4. 5. 6. 7. (continued) Cooperatives – CDA Registration & Articles of Cooperation Homeowner’s Association – HLURB Certificate Gas, LGUs, GOCCs – Unit or Agency’s Charter Estate under Judicial Settlement – Death certificate of decedent Irrevocable Trust – Trust Agreement

Additional Requirements for TIN Application � Sale, Assignment, Mortage, Purchase and/or Disposal of shares of stock and/or real estate properties – Deed of Sale/Deed of Assignment/Mortgage Document � Donation of properties – Deed of Donation � Transfer of properties by succession – Deed of Extrajudicial Settlement of Estate, Judicial Settlement of estate, Death Certificate � Claim of Winnings – Certification from Awarding Company/person � Registration of Vehicle – Cash Invoice or Official Receipt for brand new vehicle; for second-hand vehicle, Deed of Sale and COR

Securing of TIN through Other Facilities/Agencies Secure TIN Proceed to Second Stage? No System Confirmati on Page Yes System Confirmation Page/Other Doc. Reqs. Submit to TSS of BIR

Venue for TIN Application � For Individuals/Non-individuals – RDO having jurisdiction over the place where the HO or branch is located. � For roving stores, mobile store operators, privilege store owners and the like – RDO having jurisdiction over the place of residence of seller � For employees – place of office of the employer where such employee is expected to report for work

Venue for TIN Application � For employees of employers under TAMP – employers shall be responsible for securing TIN through the e-TIN/e-Reg facility. � Employees with multiple employers – RDO having jurisdiction over his principal/main employer. � Estate – residence of the decedent � Donation – residence of the donor � Sale of real property – RDO having jurisdiction over the real property

Venue for TIN Application � Sale of shares of stock – address of the seller for shares of stock not traded in the stock exchange. For listed shares, place where the Local stock Exchange is located. � Other applicants (E. O. 98) – residence of the applicant

Second Stage of Primary Registration � Who are required to proceed to the second stage of the registration process? a. Employees b. Self-employed individuals, professionals, estates and trusts, their branches or facilities c. Corporations, partnerships, cooperatives, associations, their branches or facilities d. GAIs, GOCCs, LGUs, their branches or facilities

Second Stage of Primary Registration � Except for employees and facilities, it is the stage where the registrants are required to: 1. pay registration fee, if applicable; 2. secure Certificate of Registration; 3. get “Ask for Receipt” notice, if applicable; 4. attend the taxpayer’s initial briefing to be conducted by the BIR

When to Proceed to the Second Stage? � Employees – Within 10 days from date of employment � Self-employed individuals, professionals, estates and trusts, their branches – within thirty (30) working days from the day the corresponding Mayor’s Permit/PTR is issued to the taxpayer � Corporations (Taxable or Non-taxable) – before payment of any tax due

When to Proceed to the Second Stage? � Partnerships, Associations, Cooperatives, Gas and instrumentalities – before or upon filing of any applicable tax return, statement or declaration

Where to File Registration Form � Registration Form shall be filed with the same RDO where TIN was obtained � If individual applies for business and principal place of business is under the jurisdiction of a RDO different from the RDO that issued his TIN, said TIN shall be transferred to the new RDO

Certificate of Registration (COR) � The COR shall only be issued to individuals engaged in business or the practice of profession and to juridical persons � Each HO, branch or facility shall be issued with a COR � Posting of COR – Persons issued with COR shall post or exhibit the same, and his/its duly validated RF Return at a conspicuous place in its/his principal place of business

Denial for TIN Application and Registration � A. Deliberate misrepresentation or omission by the taxpayer of material facts in the application; � B. Non-submission by the taxpayer of material supporting documents required of him by the BIR; � C. The filing of application is on its face erroneous or fraudulent; � D. The taxpayer already has a previously issued TIN

Annual Registration Fee � An annual Registration Fee (RF) in the amount of P 500. 00 for every separate or distinct establishment or place of business shall be paid upon registration and every year thereafter on or before January 31 by every person subject to any internal revenue tax.

Annual Registration Fee The following are exempt from the imposition of annual registration fee: 1. Cooperatives duly registered with the CDA; 2. Individuals earning purely compensation income whether locally or abroad; 3. Overseas workers; 4. GAIs, in the discharge of governmental functions; 5. Marginal Income Earners; 6. LGUs;

Annual Registration Fee 7. Tax exempt persons enumerated under Section 30 of the Code, as amended; 8. Non-stock/non-profit organizations not engaged in business; 9. Persons subject to tax under one-time transactions; and 10. Facility/ies where no sales transaction occur.

Where to pay the Registration Fee � To an Authorized Agent Bank (AAB) located with the RDO, or to the Revenue Collection Officer (RCO), or duly authorized Treasurer of the city or municipality where each place of business or branch is registered, subject to the EFPS rules and regulations.

Registration of Tax Types � Registration of tax types/fees by a business entity would consist of the following: a. Income tax; b. VAT and/or percentage tax; c. Withholding tax on compensation; d. Creditable withholding tax at source on certain income payments; e. Final withholding tax on certain income payments; f. Documentary stamp tax; g. Excise tax; and h. Annual registration fee.

On Tax Types with Tax Holidays/Exemptions � The types of taxes which are on tax holiday or exemption shall not be included in the registration of tax types he is obligated to pay for the effectivity of the exemption period. Upon expiration thereof, the RDO shall automatically update the registered tax types.

On Business Tax Type Registration � VAT Registration Any person who, in the course of trade or business, sells, barters, exchanges goods or properties, or engages in the sale of services subject to VAT imposed in Secs. 106 and 108 of the Code, as amended.

On Business Tax Type Registration � Mandatory VAT Registration 1. gross sales/receipts for the past twelve (12) months except Section 109 (1) (A) (U) of the Tax Code, exceeds P 1. 5 M; or 2. there are reasonable grounds to believe that his gross sales or receipts for the next twelve (12) months, other than those under Section 109 (1) (A) to (U) of the Tax Code, will exceed P 1. 5 M.

Where to file VAT Return � Register with the RDO having jurisdiction over the Head Office of that person. � Failure to register shall make him liable to pay the output tax, as if he were a VATregistered person, without benefit of input tax credits for the period in which he was not properly registered.

On Business Tax Type Registration � Non-VAT Registration Who are required to register under non. VAT: 1. those persons subject to percentage tax under Title V of the Code; 2. those whose transactions are VATexempt under Section 109 of the Code; and 3. Marginal income earners.

Optional Registration of VAT � Who may opt for VAT Registration? 1. Any person who is VAT-exempt since gross sales/receipts do not exceed P 1. 5 M; 2. Any person who is VAT-registered whose transactions are mixed, on his exempt transactions; and 3. Franchise grantees of radio and/or TV broadcasting whose gross receipts of the preceding year do not exceed P 10 M. This option, once exercised, is irrevocable.

When to register as Optional VAT taxpayer? � Apply for VAT registration not later than ten (10) days before the beginning of the taxable quarter. � Once registered, the optional VAT taxpayer is liable to output tax and entitled to input tax beginning the first day of the month following his registration.

On Registration of Other Taxes � DST shall only be registered in respect to those taxpayers who are liable to pay it on a periodic basis. � Registration of excise tax type shall only be applicable to those persons subject to it under Section VI of the Tax Code.

Rules on Registration of Tax Types � Income tax – with the Head Office only; � VAT – with the Head Office only; � Percentage tax – with the Head Office only, on a consolidated return (pertinent to the total sales of all the branches); or with each branch pertinent to the sale of each branch; � Withholding tax on compensation – with the Head Office only or with each branch, at the option of the taxpayer;

Rules on Registration of Tax Types � Creditable withholding tax at source on certain income payments – with Head Office only or with each branch, at the option of the taxpayer; � Final withholding tax on certain income payments – with Head Office only or with each branch, at the option of the taxpayer; � Documentary stamp tax – with Head Office only or with each branch, at the option of the taxpayer;

Rules on Registration of Tax Type � Excise tax – with the Head Office or with each branch, at the option of the taxpayer; � Annual registration fee – in the Head Office and in all the branches, facilities with sales transaction

Rules on Registration of Tax Type � For Large Taxpayers Rules on registration of tax type does not apply since they are required to register under the e. FPS facilities. Income, VAT, Percentage, and withholding taxes shall be filed on a consolidated basis.

Update of Registration � Instances where taxpayer shall update his registration information: 1. A person’s business has become exempt in accordance with Section 109 (1) of the Code; 2. A change in the nature of the business itself from sale of taxable goods to exempt sales; 3. A person who availed of the optional VAT registration, who, after three years, applies for cancellation as such;

Update of Registration 4. A VAT-registered person whose gross sales/receipts for three (3) consecutive years did not exceed P 1. 5 M beginning July 1, 2005; and 5. Any other changes/updates in registration information previously supplied, including cancellation or change in any tax types.

Cancellation of Registration � Cancellation may either be cancellation of TIN or business registration Reasons for cancellation of TIN 1. Death of an individual; 2. Dissolution, merger or consolidation of juridical person; 3. Discovery or a taxpayer having multiple TINs; 4. Payment of estate tax

FORMS 1900 TITLE Due date Application for Authority to Use CAS or Components thereof / Loose-Leaf Books of Accounts 1901 Application for Registration for Self-Employed and Mixed Income Individuals, Estates and Trusts W/in 30 days from date of commencement of business 1902 Application for Registration for Individuals W/in 10 days from Earning Purely Compensation Income, and Non- date of employment Resident Citizens/ OCWs/Seamen Earning Purely Foreign-Sourced Income

FORMS TITLE Due date 1903 Application For Registration for Corporations/Partnerships (Taxable/Non. Taxable), Including GAIs and LGUs W/in 10 days from date of registration with SEC/CDA 1904 Application for Registration for One-Time Taxpayer and Person Registering under E. O. 98 1905 Application for Registration Information Update W/in in 30 days from date of change 1907 Application for Permit to Use Cash Register Machine/Point-of-Sale Machine

Cancellation of Registration � Cancellation of business registration may be granted on the following instances: 1. Closure/cessation of business registration; 2. Dissolution of corporate partnership; 3. Merger/consolidation; 4. Death of an individual

Bookkeeping � Legal Basis Sections 232 to 235 of the 1997 Tax Code

Who are required to keep books of accounts? All corporations, companies, partnerships or persons required by law to pay internal revenue taxes.

Books of Accounts to be kept � Simplified set of books – if quarterly sales, earnings or receipts, or output do not exceed P 50, 000 � Audited Financial Statements – if gross quarterly sales, earnings or receipts or output exceeds P 150, 000

Books of Accounts (RR No. V-1) � Journal (Sales Journal, Purchase Journal, Cash Book) � Ledger � Subsidiary books � Electronic Records (RR 9 -2009) – if a taxpayer maintains electronic and hard copy formats, the TP shall make the records available to the Bureau in electronic format upon request of the commissioner or its authorized representative

Electronic Recordkeeping Requirements for LT � All Large Taxpayers under RR 1 -98 are required to maintain CAS (Computerized Accounting System) or components thereof. All books of accounts and accounting records shall be in electronic format. � All LT who are currently using manual books of accounts are required to register CAS not later than December 31, 2009.

Examination of CAS (RR 6 -2006) � CAS books/records may be examined by duly authorized Revenue Officers and BIR Officials in the course of a tax audit/investigation. � Books of accounts/other accounting records in electronic format that were submitted and registered with the BIR within thirty (30) days from the close of the taxable year (RMO 292002) shall be provided to the BIR upon audit/investigation.

Registration of Manual Books of Accounts (RMC 82 -2008) Registration Procedures: 1. Manual books of accounts previously registered ◦ ◦ whose pages are not yet fully exhausted can still be used in the succeeding years without the need of re-registering or re-stamping the portions pertaining to a particular year should be properly labelled or marked by the taxpayer.

Registration of Manual Books of Accounts (RMC 82 -2008) cont. . . 2. 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. �Not necessary to register new set of manual books of accounts each and every year.

Registration of Manual Books of Accounts (RMC 82 -2008) cont. . . 3. other deadlines � Jan. 30 of the ff year (RMO 29 -2002) applies only to computerized books of accounts and not to manual books of accounts � The “ 15 days after the end of the calendar year” (RMC 13 -82) refers to loose-leaf books of accounts and not to manual books of accounts

Registration of Manual Books of Accounts (RMC 82 -2008) cont. . . 4. Newly registered taxpayers shall present the Manual Books of Accounts before use to the RDOs where the place of business is located or concerned office under the Large Taxpayer Service for approval and registration.

Registration of Manual Books of Accounts (RMC 82 -2008) cont. . . 5. 6. Subsidiary manual books of accounts to be used by taxpayers, in addition to the manual books of accounts, shall be registered before use, following the same rules. TSS personnel has no authority to examine whether the previously registered books are complete and/or updated prior to its approval.

On CAS – (RMO 29 -2002) The requirement of binding and stamping of computerized books of accounts and/or receipts and invoices are no longer necessary, provided that: 1. Soft copy of the CAS in text file format shall be made available in the ff mode: �In CD-ROM (read only) properly labelled �Electronically archived information In case the TP has no capability to submit in CD-ROM form, procedures under the manual system shall prevail �

On CAS – (RMO 29 -2002) con’t. . . 2. A duly notarized certification in the form of an affidavait ascertaining/attesting the accuracy of the ff shall be submitted to the RDO within 30 days from the close of the taxable year: � � The number of receipts and invoice used during the year; and Soft copy in CD-ROM duly stamped “registered” and signed by authorized official or the archived books of accounts

On Loose Leaf (RMC 13 -82) � TP should be required to bind the loose leaf forms within 15 days after the end of the taxable year

Invoicing Requirements (Sec. 237) All persons subject to internal revenue tax shall �For each sale of P 25 or more �Issue duly registered receipts or sales or commercial invoices �Prepared at least in duplicate

Invoicing Requirements (Sec. 237) Required information: �Date of transaction �Quantity �Unit Cost �Description of merchandise or nature of the service �TIN of purchaser if VAT-registered

Invoicing Requirements (Sec. 237) Required information: Name, business style and address of the purchaser shall be indicated in the ff cases – �Amount exceeds P 100; �Seller and buyer are VAT-subject persons; �Receipt covers rentals, commission, compensation or fees.

Invoicing Requirements (Sec. 237) Disposition of the receipts/invoices ◦ Original -> purchaser ◦ Duplicate -> retained by issuer Copies of receipts/invoices should be preserved in the place of business for a period of 3 years, if engaged in business.

Invoicing Requirements (Sec. 237) (continued) BIR Printed Receipts (RMO 13 -2003) All registered taxpayers who are required by law under Section 237 of the Tax Code to issue duly registered receipts or sales and/or commercial invoices may, at their option use the BPR provided these taxpayers have

Invoicing Requirements (Sec. 237) BIR Printed Receipts (BPR) Business transactions that will require the use of not more than one booklet of 50 pages in one taxable period (of no less than 12 months) However, the use of BPR is mandatory for taxpayers who were found during the TCVD to have committed for the first time any of the following violations:

Invoicing Requirements (Sec. 237) BIR Printed Receipts 1. Failure to register with BIR under Sec. 236 of the Tax Code but has commenced business and failure to issue duly registered receipts or invoices; 2. Registered with BIR but without required receipts or invoices;

Invoicing Requirements (Sec. 237) BIR Printed Receipts 3. Possession of any of the following: a. Unregistered and/or fake receipts/ invoices; b. Multiple or double sets of receipts/ invoices; c. Unregistered cash register machines, POS or similar devices

Printing of Receipts (Sec. 238) Information required 1. Serial number (separate series for HO and branch 2. Name 3. Business style 4. TIN and Branch Code (if applicable) 5. Business Address (exact) of user (HO or branch)

Printing of Receipts (RMO 28 -2002)) Centralized issuance of ATPs – § At the RDO of the HO § Separate application and permit for each establishment to be filed at RDO of the HO § Signed by official of the HO Register the receipts with RDO of the user (HO or branch).

Printing of Receipts (RMO 28 -2002)) Users of registered Computerized Accounting Systems (CAS) – are also be required to secure ATP for manual receipts and invoices to be issued in case of system unavailability or if the CAS does not generate pre-numbered receipts/invoices.

Posting Requirement § Display “Ask For Receipt Poster” which shall be issued upon release of COR

Posting Requirement: § Display Certificate of Registration (COR) at the establishment (BIR Form 1556)

Posting Requirement (RR 4 -2000) At the place of business § In an area conspicuous to the public § At all times § Penalty: P 1, 000 and/or imprisonment of not more than 6 months.

Guidelines for – CRM/POS machines ØStickers for CAS-linked CRM/POS machines shall be issued by the RDO of the branch upon submission of copy of the Branch Permit issued by the HO RDO. ØFor stand-alone CRM/POS machines, the provisions of RR 1099 or later regulations shall apply.

Guidelines for – CRM/POS machines (continued) Requirement for a Cash Register Machine Sales Book shall be waived if CAS is capable of generating reports such as daily sales and accumulated sales containing all the information required in the manual CRM Sales Book. These shall be made available during post system evaluation of the CAS or during an authorized tax audit.

Guidelines for – CRM/POS machines (continued) Pools of stand-by or roving CRM/POS machines for use during peak seasons shall be treated as HO machines and identified as such in their applications. Ø Transfer thereof to branches shall be subject to approval of the HO RDO.

Guidelines in case of system down or no automatic system switchover Alternative receipts in case of systems downtime, and CAS has no redundancy/automatic switchover: 1. Remaining receipts from previously approved manual receipts; or 2. Manually pre-printed and prenumbered receipts not exceeding 1, 000 sets with approved ATP.

Guidelines on CAS generating receipts and invoices For CAS generating receipts and invoices, whether global or national: ØSecure advanced approval of the next set of Pre-Approved Range of Serial Number within 30 days before full utilization of current series. ØIf printed abroad under a global system, present to the BIR for registration prior to use, in lieu of advanced approval.

Guidelines on CAS generating receipts and invoices For CAS generating receipts and invoices, whether global or national: Ø Within 30 days from the close of the taxable year, submit a report on the range of serial numbers of receipts and invoices consumed and/or cancelled during the taxable year.

Computerized Accounting System Binding and stamping of computerized books of accounts and/or receipts and invoices generated by an approved CAS shall no longer be required, provided that soft copy be made available in any of the following mode:

Computerized Accounting System (continued) 1. CD-ROM (read only) labeled with the name of taxpayer, taxable year and the Serial No. and Volume No. of the books of accounts and other accounting records/documents duly stamped registered and signed on the label by the LTAD I or II, LTDO or RDO. Subsequent adjustments shall also be submitted in the same format. 2. Electronically archived information to be retained for three years from due date or actual date of filing of the annual ITR.

Computerized Accounting System (continued) 3. A notarized affidavit attesting to the accuracy of the required soft copy and the number of receipts and invoices used during the year shall be submitted to the LTAD I or II, LTDO or RDO within 30 days from the close of the taxable year.

CRM Registration (RR 11 -2004) � Required Specifications 1. must have a non-resettable accumulating grand total of at least ten(10) digits or twelve(12) digits 2. equip CRM with a reset counter that advances by 1 every time the accumulating grand sales total is reset to zero. 3. must be tamper-free 4. must be able to generate a daily sales report and accumulated grand total recorded therein

CRM/POS Registration � 5. non-volatile memory or must be equipped with a recovery/back-up system 6. reflect/store information on sales discounts, refunds, etc. 7. indicate separately VAT and non-VAT subject items 8. generates a report summarizing all VAT sales and non-VAT sales

CRM/POS Requirement � The machine must be equipped with two (2) rollers, one for customers’ tape copies and the other for audit journal tape. � POS machines connected to a server, all sales per POS must be automotically and completely recorded in the central server. � The stored data shall be preserved for a period within which the Commissioner is authorized to make an assessment and collection of taxes.

Receipt/Invoice Data Requirements 1. CONTENTS � A. Business Name; � B. Registered Taxpayer’s Name with BIR; � C. TIN; � D. Address where machine will be used; � E. Receipt/Invoice Number; � F. Machine Model Accreditation Number; � G. Date of Transaction; � H. Quantity; � I. Product Description; � J. Amount of Transaction; � K. “THIS SERVES AS AN OFFICIAL RECEIPT”

Receipt/Invoice Data Requirements � 2. Submit sample design of receipt upon application for accreditation; � 3. Businesses authorized to use CRM/POS are exempted from showing Name, Business Style, Address and TIN of taxpayer;

Accrreditation of CRM/POS Brands and Models � Responsibility of Machine/System suppliers – accredit the machine with the Bureau prior to actual distribution/sale of such machines. � Venue for Accreditation a. National Office MAB – for supplier under the jurisdiction of the LTS; b. Regional Office MAB for supplier under the jurisdiction of the RDOs. The application must be in the form of a Sworn Declaration

CRM/POS Accreditation � Actual system demonstration/machine inspection must be conducted by the applicant-dealer � Once dealer is accredited, he/it will be issued an Accreditation Number � Any upgrading, integration or modification made in the machine shall be subject to prior approval

CRM/POS Machine Registration � Vendor/dealer/manufacturer must register the machine within five (5) days from date of sale of the machine; � Registration may be done manually, by e-mail or website of the BIR � If applied thru website, the system-generated permit serves as the taxpayer’s authorization to use the machine; � Attach Permit to Use to the back of the machine; � Print boldly the serial number of the machine

Conditions for Use of CRM � Maintain cash register sales book for each machine (RR 10 -99); � Install corresponding tapes on both rollers or its equivalent; � The imprint on the tapes should be legible at all times; � The subsidiary cash register sales book should be available at all times at the place where the CRM is located, and shall be available at all times for verification.

Conditions for Use of POS � All users of POS machines must secure approval from the Bureau, in writing, for the use of such machines; � Secure approval also for the subsequent document range of serial numbers to be used at least one month prior to consumption of previous document range; � No POS shall be operated without the corresponding electronic journal.

Conditions for both CRM/POS � Report all number of resets to the Bureau; � No switching to “training mode” or “no-sale transaction mode”; � Use machine exclusively in the operation of only one line of business; � Changes or updates on the information of the tape shall not be done without prior written notice to the Bureau; � Any repair, change, upgrade or updates to the machine shall not be done without prior written notice to the Bureau;

Conditions for both CRM/POS � Following the repair, upgrade, change, modifications or any update, and prior to the reuse of the machine, user and person who made the repair must submit a joint sworn statement attesting to such development; � The machine may be withdrawn from use, retired or sold only upon prior application of and approval by the Bureau; � The receipt numbering mechanism/circuit of a registered machine shall not be disturbed or tampered with.