Transitory Provisions of EOPT Act Issuances
This short guide summarises all the transitory provisions implemented by three regulations introduced by the Ease of Paying Taxes (EOPT) Act as clarified by the Bureau of Internal Revenue (BIR).
No. of Issuance | Transitory Provisions |
BIR Revenue Regulation (RR) No. 3 – 2024
With the shift from cash basis to accrual basis for sale of service, the BIR clarifies the timing of reporting of services rendered before the effectivity of the RR and the collection thereof. | On Billed but uncollected sale of services – These apply to the sale of services transpired upon effectivity. Thus, the corresponding output VAT shall be declared once it has been collected for outstanding receivable on services rendered before the effectivity of these regulations. In the case of collection, the sales and corresponding output VAT shall be declared in the quarterly VAT return when the collection was made and shall be supported with an Invoice following the transitory provisions contained in the RR intended for invoicing requirements to implement the EOPT or the new BIR-approved set of Invoices, whichever is applicable |
| On Uncollected receivables from sale of goods as of the effectivity of these Regulations – The regulation states that the claim of output tax credit on uncollected receivables shall only apply to transactions that transpired upon the effectivity of these regulations. No output credit is allowed for outstanding receivables from the sale of goods prior to the effectivity date of this regulation. | |
BIR RR No. 7 – 2024 (amended by RR No. 11-2024)
These provisions clarify the requisites and deadlines implemented in relation to the valid primary documentation for VAT purposes (i.e. Invoice). | On the Certificate of Registration (COR) reflecting the Registration Fee – Business taxpayers are not required to replace their existing BIR Certificate of Registration that displays the Registration Fee shown therein, and taxpayers are not anymore required to pay the Annual Registration Fee. Note that updating the COR is only necessary if there are changes to the registration information, excluding the Registration fee, reflected on the COR. |
On unused official receipts – For taxpayer who will continue the use of the remaining Official Receipts as a supplementary document – All unused or unissued Official Receipts may still be used as supplementary documents until fully consumed, provided that the phrase “THIS DOCUMENT IS NOT VALID FOR CLAIM OF INPUT TAX”, is stamped into the face of the document upon the regulation’s effectivity date. For taxpayers who will convert and use the remaining Official receipts as an invoice – The EOPT allows taxpayers to strikethrough the word “Official Receipt” [Eg.
a. Amount of sales; b. VAT amount; c. Registered name and TIN as shown on the Bureau of Internal Revenue (BIR) Certificate of Registration of both purchaser or buyer and issuer or seller; d. Description of goods or nature of services; and e. Date of transaction.
Reportorial Requirement for Unused Official Receipts/Billing Statement/Statement of Account/Statement of Charges to be used as Invoice upon effectivity of these Regulations – The RR notes that all unused manual and looseleaf Official Receipts/Billing Statement/Statement of Account/Statement of Charges to be converted as “Invoice” shall be reported by submitting an inventory of unused Official Receipts/Billing Statement/Statement of Account/Statement of Charges that indicate the number of booklets and corresponding serial numbers on or before July 31, 2024, to the Revenue District Office (RDO), LT Office, LT Division where the Head Office or Branch Office is registered, in duplicate copies. | |
On Cash Register Machines (CRM) and Point-of-Sales (POS) Machines and E-receipting or Electronic Invoicing Software – The RR explains that all Taxpayers using CRM/POS/E-receipting /E-invoicing may change the word “Official Receipt” (OR) to “Invoice”, “Cash Invoice”, “Credit Invoice”, “Billing Invoice”, “Service Invoice”, or any name describing the transaction without any need to notify the Revenue District Office(s) having jurisdiction over the place of business of sales machines, since the reconfiguration shall be considered as a minor system enhancement which shall not require the reaccreditation of sales software/system on part of the software supplier nor reissuance of the Permit to Use on the part of the taxpayer-user provided further, that the serial number of the converted Invoice, to the RDO/LT Office/LT Division where the machines are registered, in duplicate original copies. The receiving branch RDO will then transmit the duplicate copy to the Head Office RDO.
Since the system enhancement will have a direct effect on the financial aspect, it shall be considered a major enhancement which will require taxpayers to update their system registration following the existing policies and procedures in registering use of CAS or CBA with AR.
The previously issued Acknowledgement Certificate (AC) or Permit to Use will then be surrendered to the RDO where the concerned taxpayer is registered, and a new AC will then be issued to the Head Office Branches. Note that the required annex of the AC shall indicate that all branches (if applicable) that are using the said system/software and the sets of series of accountable forms (Invoice) to be used by each of the branches, if applicable.
In order to provide ample time in reconfiguring machines and enhancement of CAS/CBA with AR, adjustments shall be undertaken on or before December 31, 2024. Any extensiondue to the reconfiguration/enhancements of system must be approved by the concerned Regional Director or Assistant Commissioner of the Large Taxpayers Service which shall not be longer than six (6) months from December 31, 2024.
The serial number of the renamed Invoice to be issued by CRM/POS machines, e-receipting or electronic invoicing software, CAS or CBA with AR shall start by continuing the last series of the previously approved Official Receipt and shall submit notice after the completion of reconfiguration/enhancement, indicating the starting serial number of the converted Invoice, to the RDO/LT Office/LTDivision where the machines are registered, in duplicate copies, within thirty (30) days from the completion of machine/system reconfiguration/enhancement or on December 31, 2024, whichever comes first. The receiving Branch RDO shall transmit theoriginal copy to the Head Office RDO.
Documents issued by CRM/POS machines, e-receipting or electronic invoicing software, CAS or CBA with AR containing the word "Official Receipt" from April 27, 2024 until the completion of machine/system reconfiguration/enhancement shall be considered as valid for claiming of input tax by the buyer/purchaser until December 31, 2024 or until the completion of machine/system reconfiguration/enhancement, whichever comes first.Provided, that there is no missing information as enumerated under Section 3(D)(3) of RR No. 7-2024 and the machine/system printed/generated "Official Receipt/ Billing Statement/Statement of Account/Statement of Charges" is converted by striking through the term "Official Receipt/ Billing Statement/Statement of Account/Statement of Charges" and stamping the word "Invoice/Billing Invoice" on the document.
Issuing "Official Receipt" (with or without strikethrough) generated by CRM/POS machines, e-receipting, electronic invoicing software, CAS or CBA with AR for the sale of goods or services after December 31, 2024 or until the completion of machine/system reconfiguration/ enhancement, whichever comes first, and issuing manual/loose leaf "Official Receipt" without converting them to "Invoice" for the sale of goods or service starting April 27, 2024, will not be considered as evidence of sales of goods or services and shall be tantamount to failure to issue or non-issuance of Invoice required under Section 6(A) hereof. Such failure is subject to penalty of not less than One Thousand Pesos (Php 1,000.00) but not more than Fifty Thousand Pesos (Php 50,000.00) and suffer imprisonment of not less than two (2) years but not more than four (4) years pursuant to Section 264(a) of the Tax Code.
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BIR RR No. 8 – 2024
This is in line with the classification of taxpayers based on their gross sales for a taxable year (micro, small, medium and large taxpayers). | The last transitory provision within the EOPT Act clarifies that taxpayers registered in 2022 and prior years will now be classified on the basis of their gross sales for taxable year 2022. |