Clarifications on the removal of the 5-year validity period on receipts/invoices
The Bureau of Internal Revenue (BIR) provides new provisions regarding the removal of the five (5) year validity period on receipts/invoices.
The Bureau of Internal Revenue (BIR) explains the provisions about removing the five (5) year validity period on receipts/invoices in its Revenue Memorandum Circular (RMC) 123-2022. The bureau stated that it would take effect on July 16, 2022, fifteen (15) days from the publication date.
The RMC aims to resolve the issues raised by the previously issued Revenue Regulation (RR) No. 6-2022. Since the RR’s changes to the validity period roused concern for both internal and external stakeholders.
Coverage of Regulation
The regulation covers every taxpayer using Principal and Supplementary Receipts/ Invoices. Additionally, it also covers those applying to any of the following requirements:
- Authority to Print (ATP).
- Registration of Computerized Accounting System (CAS)/Computerized Books of Accounts (CBA) and/or its Components.
- Permit to Use (PTU) Cash Register Machines (CRM)/Point-of-Sale (POS) Machines and Other Sales Receipting Software.
It’s stated that receipts/invoices that have expired on or before July 15, 2022, are no longer valid for use. The validity period of receipts/invoices are taken from the issuance date of the ATP as seen in the table below:
Date of ATP | Unused Receipts/Invoices as of Expiry Date | |
Date of Issue | "Valid Until" as reflected in ATP/Receipts/Invoices | Can they still be issued? (Yes/No) |
On or before July 16, 2017 | On or before July 15, 2022 | No |
July 17, 2017 onwards | July 16, 2022 onwards | Yes |
RDO requirements
The RMC mandates that all unused and expired receipts/invoices dated before July 15, 2022, must be surrendered – along with an inventory listing to the Revenue District Office (RDO). This RDO must have a Head Office or Branch registered on or before the 10th day after the validity period of the expired receipts/invoices before discarding expired receipts/invoices.
Updates for receipts, registrations, and applications
Taxpayers with expiring receipts/invoices with existing ATP can issue their receipts until they are completely exhausted on or after July 16, 2022, issue their receipts till they are completely exhausted. But they must disregard the phrases "THIS INVOICE/RECEIPT SHALL BE VALID FOR FIVE (5) YEARS FROM THE DATE OF THE ATP" and "Validity Period" found at the footer of the printed receipts/invoices.
The announcement states that ATPs expire on or before July 15, 2022, and haven’t registered for subsequent ATPs not over sixty (60) – the mandatory day before their expiration Shall Not be liable to pay the penalty for late application of ATP.
All taxpayers using unregistered receipts/invoices that have expired before July 15, 2022, will be liable to a penalty amounting to ₱20,000.00 for the first offence and ₱50,000.00 for the second offence.
Applications trying to get accredited for CRM/POS and other Sales Receipting Software must exclude the phrases “THIS INVOICE/RECEIPT SHALL BE VALID FOR FIVE (5) YEARS FROM THE DATE OF THE PERMIT TO USE" and the "Valid Until (mm/dd/yyyy)" of the PTU found on the footer of generated receipts/invoices during the evaluation.
Registering to CAS and its components no longer requires taxpayers to use the phrase “THIS INVOICE/RECEIPT SHALL BE VALID FOR FIVE (5) YEARS FROM THE DATE OF THE ACKNOWLEDGMENT CERTIFICATE" on the generated receipts/invoices.
Taxpayers registered with PTU CRM/POS Machines/CAS must change their CRM/POS Machines/CAS to remove the following phrases “THIS INVOICE/RECEIPT SHALL BE VALID FOR FIVE (5) YEARS FROM THE DATE OF THE PERMIT TO USE" / "THIS INVOICE/RECEIPT SHALL BE VALID FOR FIVE (5) YEARS FROM THE DATE OF THE ACKNOWLEDGMENT CERTIFICATE" and "Valid Until (mm/ dd/ yyyy)".
The RMC clarifies that written notifications don’t need to be submitted to the concerned RDO, because these modifications are considered minor enhancements due to the changes brought by RR No. 6-2022.
The RMC’s last announcement reveals that CRM/POS/CAS and other machines generating receipts/invoices are being reconfigured until December 31, 2022, to comply with the provisions under RR No. 6-2022.