For Cash Register Machine (CRM) /Point of Sales Machine (POS) Machines linked to Computerized Accounting System (CAS)
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:
o 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.
o 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.
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 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 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.
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.
For Stand Alone CAS or POS Machines (not linked to CAS)
1) Accomplished BIR Form 1907 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 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 For Repair, Upgrade, Change, Modification, Update Or Removal/Withdawal
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