FURTHER AMENDING CERTAIN PROVISIONS OF REVENUE REGULATIONS NO. 11-2004 PRESCRIBING THE MACHINE IDENTIFICATION NUMBER (MIN) STICKER FOR THE USE OF CASH REGISTER MACHINES (CRM), P…

SECTION 1. Background. The
Bureau has continuously improved its processes (both electronic and
manual) on the requirement for the inspection, evaluation and
registration of CRM, POS Machines and/or Business/Sale Machines
Generating Receipts/Invoices, and these have posed increasing
difficulties to the stakeholders. With the growing complexity of the
inspection-evaluation-registration process specifically in the issuance
of MIN for each machine, it is imperative to impose a standard and
uniform MIN Sticker to identify the duly registered sales machines, to
align the existing process with the ongoing enhancement of the eAccReg
system and the periodic eSales reporting as required by existing
regulations.

Pursuant to Sections 6 and 244, in relation to
Sections 237 and 238 of the Tax Code of 1997, as amended, these
Regulations are hereby promulgated to further amend Revenue Regulations
(RR) No. 11-2004, as amended by RR No. 5-2005, with respect to the
registration and issuance of Permit to Use CRM, POS Machines and/or
Business/Sale Machines Generating Receipts/Invoices and issuance of MIN
Stickers for these machines.

SECTION 2. Amendments. Section 9.0 of RR 11-2004, as last amended by RR 5-2005, is hereby further amended to read as follows:

“Section 9.0 Registration of Cash Register, POS Machines and Business/Sale Machines

A manufacturer/dealer/vendor/distributor must register – on
behalf of the buyer/user – the Cash Register/POS Machine to be
sold/distributed not later than five (5) days from the date of sale of
the machine, and before it is actually used by the buyer/user.

Such registration shall be done manually with the RDO / LTAD I and II /
LTDO, or electronically through the Bureau’s Electronic Mail (e-mail)
or website (e-AccReg System). In registering the CRM/POS/Business/Sale Machine generating receipts/invoices, the following information must be disclosed:

a. Taxpayer Identification Number (TIN) of the buyer (12 Digits);
b. VAT or non-VAT number of the taxpayer-buyer;

c. Serial number, brand and model of the machine sold;
d. Present reading and date of reading.

If the application for Permit to Use (PTU) CRM/POS/Business/Sale Machine generating receipts/invoices
is filed through the Bureau’s email/website facilities, the applicant
manufacturer/distributor/dealer/vendor will be issued a system-generated
Permit and MIN which may be printed from the applicant’s computer. The
applicant manufacturer/distributor/ dealer/vendor shall provide a MIN
Sticker in strict compliance with the standard design, format, size and
paper quality prescribed in a separate revenue issuance to be issued by
the Commissioner of Internal Revenue in accordance with the eAccReg
system requirements wherein the system-generated MIN information shall
be printed per Permit per machine.

The Permit and the MIN Sticker shall then be forwarded to the buyer of the machine, and shall serve as the taxpayer’s authorization to use the machine. The
PTU must be kept by the buyer/user in the place of business, head
office or branch, where the machine is located and authorized to be
used, and must be readily available for verification by the Revenue
Officers during Tax Compliance Verification Drive (TCVD) activities
and/or during audit/ investigation.

The MIN Sticker shall be a security void sticker which
reveals a warning message once opened, removed, resealed or tampered.
The MIN Sticker must be securely attached at the back of the machine to
which it refers and must be conspicuously visible to the public. The MIN Sticker shall contain the following information, to facilitate verification:

a. Machine Identification Number;
b. Name and TIN of the buyer/user (12 digits) and Branch Code;

c. Permit to Use Number;
d. Machine Serial Number;
e. Barcode.

xxx xxx xxx”

SECTION 3. Repealing Clause. – All existing rules and
regulations or parts thereof which are inconsistent with the provisions
of these regulations are hereby revoked, repealed or modified
accordingly.

SECTION 4. Penalty Clause. – In line with RMO Nos.
9-2006 and 19-2007 in relation to Section 264 (a) of the NIRC, as
amended, failure of the taxpayer to register POS/CRM and/or
business/sale machine generating receipts/invoices shall be subject to a
penalty of P25,000 for the first offense, and P50,000 for the second
offense. If warranted, a criminal case may also be filed against the
offender, where the criminal penalty imposed is a fine of not less than
P1,000 but not more than P50,000 and imprisonment of not less than two
(2) years but not more than four (4) years.

For purposes of these Regulations, the mere failure to post or
attach the MIN Sticker to the POS/CRM and/or business/sale machine
generating receipts/invoices shall be subject to a penalty fee of P1,000
per machine or institution of a criminal case against the offender
where the imposable penalty shall be a fine of not more than P1,000 or
imprisonment of not more than six (6) months, or both pursuant to
Section 275 of the NIRC, as amended, as implemented by RMO No. 19-2007.

SECTION 5. Effectivity Clause. – These Regulations shall
take effect upon system roll-out and after fifteen (15) days following
its publication in a newspaper of general circulation.

(SGD) CESAR V. PURISIMA

Secretary of Finance

Recommending Approval:

(SGD) KIM S. JACINTO-HENARES

Commissioner of Internal Revenue