Application for Permit to Use Cash Register Machine (CRM) and/or Point of Sales Machine (POS):
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.
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.
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
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)
As a general rule, automatic resetting of serial numbers on POS machines is not allowed.
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)
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)
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 taxpayer’s 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)
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 taxpayer’s branch/es or other place of business. (RMO 29-2002)
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)
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)].
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)
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.
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 taxpayer’s records. (RMO 29-2002)
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.
Applications for permit to use Vending Machines shall be processed following the provisions of RR No. 10-99.
BIR Form 1907- Application for Permit to Use Cash Register Machine/Point of Sale Machine (2002 Enhanced Version)
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, proprietor’s 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 proprietor’s 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
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
- 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.
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
Application
Before using Cash Register Machine (CRM) and/or Point of Sales Machine (POS)
Sources/References:
BIR Website
RR No. 10-99 and RMO No. 29-2002
Electronic Accreditation and Registration and Sales Reporting
REVENUE MEMORANDUM CIRCULAR NO. 45-2014, dated May 28, 2014, prescribes the use of the improved Integrated Electronic Accreditation and Registration (eAccReg) and Electronic Sales Reporting (eSales) Systems.
eAccReg is an online accreditation, registration and use of CRM/POS machines and/or other business machines generating receipts/invoices.
This electronic accreditation and registration simplifies necessary requirements for the issuance of permits to use Cash Register Machines (CRM), Point of Sales Machines (POS) and other business machines generating receipts or Printing of certificate and Final Permit is available at the eAccReg.
The eSales System is the process of reporting the gross monthly sales of taxpayers electronically. The system automates the monitoring and reporting of the gross monthly sales per registered CRM/POS or any other similar business machines generating receipts or invoices. Through eSales, taxpayer monthly sales shall be monitored by BIR.
- Authorized user should submit notarized letter Annex“A” to concerned Revenue District Office (RDO)/ Large Taxpayer District Office (LTDO)/Large Taxpayers Assistance Division (LTAD)/ Excise Large Taxpayers Regulatory Division (ELTRD) for account enrolment.
- Authorized User, in charge of accessing eAccReg and eSales, should be enrolled before use of the systems.
- One (1) authorized user should be enrolled per one (1)
TIN.
- The Authorized Users and/or authorized representatives of the taxpayer shall fill up and submit the Annex “A” of the RMC No. 45-2014 to concerned Revenue District Office (RDO)/ Large Taxpayer District Office (LTDO)/Large Taxpayers Assistance Division (LTAD)/ Excise Large Taxpayers Regulatory Division (ELTRD) for account enrolment.
- The taxpayers are required to enroll their respective authorized users/representatives to esales.bir.gov.ph portal prior to use of the enhanced and integrated eSales.
- Account enrollment application shall be one (1) authorized user per Tax Identification Number (TIN) basis, or one authorized user in behalf of multiple Branches, whichever is applicable/convenient to the taxpayer.
Annex “A”
SWORN STATEMENT
REPUBLIC OF THE PHILIPPINES
PROVINCE OF________________________
CITY/MUNICIPALITY OF ______________
I, (Name of Authorized User/Representative), (Nationality), of legal age designated as (Position) of (Registered Name of Company/Corporation), with business address located at _____________________________________, do hereby certify the following:
- THAT the company is engaged in, (line of business) and existing under (business name), with TIN__________________.
- THAT the (Type of Machine/Name of Software) conform to the conditions/specification requirements set by the Bureau of Internal Revenue;
- THAT the (Type of Machine/Name of Software) has the following essential features;
(Attach additional sheet if necessary)
- THAT in the event that the foregoing be discovered to be in violation of existing rules and regulations, I hereby undertake to face any legal sanctions and pay corresponding penalties thereof as provided for under the National Internal Revenue Code of 1997;
I HEREBY DECLARE UNDER PENALTIES OF PERJURY THAT THE FOREGOING ATTESTATIONS ARE TRUE AND CORRECT TO THE BEST OF MY KNOWLEDGE.
Name and Signature of Affiant/Authorized Representative TIN: ___________________________ |
SUBSCRIBED and sworn to before me, in the City/Municipality of ____________________________, this day of __________, 20___ by ____________________ with Residence Certificate No. _______ issued at _____________ on, ______________ 20___.
All taxpayers engaged in business using Cash Register Machine (CRM), Point of Sale (POS) System and Other Sales Machines (OSM) or any other similar devices through different channels.
All taxpayers using CRM/POS and/or other similar business machines with
- TIN ending in even number shall report their sales on or before the 8th day after the month of sale via the eSales
- TIN ending in odd number shall report their sales 10 days after the month of sale
In line with the Bureau’s continuing efforts to improve taxpayers’ voluntary compliance and increase revenue collections, there is a need to strengthen enforcement capabilities through effective monitoring and validation of the accuracy of sales declaration generated POS/CRM and/or other similar business machines from manual invoices/receipts/supplemental commercial documents.
Any taxpayer required to transmit sales data to the Bureau’s electronic sales reporting system but fails to do so, shall pay, for each day of violation, a penalty amounting to one-tenth of one percent (1/10 of 1%) of the annual net income as reflected in the taxpayer’s audited financial statement for the second year preceding the current taxable year for each day of violation or Ten thousand pesos (₱10,000), whichever is higher: Provided, That should the aggregate number of days of violation exceed one hundred eighty (180) days within a taxable year, an additional penalty of permanent closure of the taxpayer shall be imposed. (Section 264-A under Chapter II, Title X of the NIRC, as amended).
Log-on using your Username and Password (You need to register first in the system. Username and Password should have a minimum of 8 characters and a maximum of 15 characters).
Sales Reporting Steps:
For machines not more than 20 (ENCODE SALES):
- Click the Encode Sales link (displays initially 10 rows)
- Choose the Branch to be reported for
- Choose the Month and Year of sales to be submitted
- Select the Machine Identification Number
- Enter the End Range of Official Receipt, and the Sales details
- Click Add to List after inputting all details needed
- Repeat the previous steps to add another entry
- Click the Confirm Transaction button
- Click the Save button
- Taxpayer will receive the confirmation of submission with the corresponding SRN
For machines more than 20 (UPLOAD SALES):
- Download the CSV attachment Sales Report
- Enter ALL needed data for the record in the CSV file (TIN, Branch, Month, Year, Machine Identification Number, Last Official Receipt, Sales Details).
- The number of rows allowed for each CSV file is up to 999 only. You may save into another CSV file the next set of sales report then submit for uploading.
Important: Filename must be saved in this format, POS SALES [TIN][Branch Code] MMYYYY F[Series].
- Click the Upload Sales tab
- Browse the CSV file to be uploaded
- Click the Upload button
- Taxpayer will receive the confirmation of submission in the EMAIL with the corresponding SRN and the corresponding errors (if any)
Other Functionalities of ESALES:
For Viewing of the Reported Sales:
- Click the View Reported Sales tab
- Enter the Covered Period when you reported the sales then click the submit button, and other additional details
- Click the Search button
- The system displays all the reported sales with the corresponding SRN
For Adding of Branches:
- Click the Profile tab
- Click Add Branch
- Input the Branch Code
- Click Submit button
For Changing of Password:
- Click the Profile tab
- Click the Change Password link
- Enter Current Password, New Password, and Confirm New Password
- Click Submit button
Download the CSV attachment Sales Report
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Sign-in Account: https://esales.bir.gov.ph/SALES/login.html
Sign In Account : https://eaccreg.bir.gov.ph/ACCREG/login.html