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Home » RMC No. 69-2020

RMC No. 69-2020

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REVENUE MEMORANDUM CIRCULAR NO. 69-2020 issued on July 13, 2020 prescribes the revised procedures on the cancellation of Permit to Use (PTU) Cash Register Machines (CRM), Point-of-Sale (POS) Machines, and other similar sales machines generating receipts/invoices in compliance with Republic Act No. 11032 (Ease of Doing Business and Efficient Government Service Delivery Act of 2018).

The cancellation of the PTU CRM/POS machine shall be processed by the Revenue District Office (RDO)/LT Office having jurisdiction over the taxpayer’s business address where the machine was registered.

The taxpayer shall notify the concerned RDO)/LT Office, in writing, on their request for cancellation of the PTU within five (5) days from the date the machine was last used/withdrawn from use stating the reason(s) for the cancellation and other information such as, but not limited to, the following: a) Permit Number; b) Machine Identification Number (MIN); c) type of machine; d) Machine serial number, brand/model; e) software name and/or version; and f) grand accumulated sales as of last day of use of the machine.

The taxpayer shall submit the following documents as an attachment to the Letter or to the assigned Revenue Officer at the time of machine inspection:
 Copy of the Z-Reading (for POS machines)/audit tape (for CRM) showing the reset counter number and End-of-Day (EOD)/Z-Counter Reading as of last day of use of the machine(s);
 Copy of the back-end report (for POS machines)/cash register sales book page (for CRM) as of last day of use of the machine(s);
 Original copy of the PTU issued;
 Original copy of the Decal;
 Reprint copy of the last invoice/receipt generated as of last day of use showing the serial number of such invoice/receipt;
 Copy of the Z-Reading/EOD Report or its equivalent showing that the sales machine was reset to zero or initialized; and
 For new/upgraded software (loaded in the same machine where the old software is installed) – copy of the Z-Reading/EOD Report or its equivalent showing the initial reading of the newly installed software.

Actual inspection of the CRM/POS shall be mandatory in case of its withdrawal from use or its transfer to another branch of the company. However, in case of modification/upgrading of the software being used, actual inspection of the machine may be dispensed with under the following conditions:
a. New/upgraded software shall be set-up in the same hardware/machines where the old POS software are installed;
b. POS machines have existing PTU issued through the Electronic Accreditation and Registration (eAccReg) System;
c. The new or upgraded software will be implemented/deployed/rolled-out nationwide or in branches/franchisees located in different RDOs; and
d. The changing/loading of the new/upgraded software in the POS machines will be implemented immediately after the close of the business hours.

In case of withdrawal from use or transfer of the CRM/POS to another branch of the taxpayer, the assigned Revenue Officer shall conduct an inspection of the machine and perform the following:
a. Check the specifications and details of the said machine(s) as against the specifications indicated in the Letter of the taxpayer
b. Request taxpayer to generate the Z-Reading as of the day of inspection and match it with the Z-Reading (as of last day of use) submitted by the taxpayer. The grand accumulated sales should be the same.
c. Request taxpayer to generate the back end report (for POS) of the machine as of the date of inspection and compare it with the grand accumulated sales as reflected in the ZReading as of the last day of use of the machine. For CRM, check the entries in the Cash Register Sales Book if updated (last entry should be the declared last day of use of the machine)
d. Initialize the resetting to zero of the machine
e. Impose penalty for any violation pertaining to the use of CRM/POS machines that may be found during the inspection Non-payment of the penalties at the time of the request for cancellation of the PTU shall not be a ground for the non-issuance of the Cancellation Certificate.

The assigned Revenue Officer shall submit a Memorandum Report on the result of the inspection upon completion of the machine inspection and submission of the required documents by the taxpayer, which shall be approved by the Assistant Commissioner, Large Taxpayer Service/RDO.

Upon approval of the said Memorandum Report, the Client Support Section Chief of the RDO/Chief, LT concerned office or its authorized staff shall cancel the PTU and the MIN of the machine in the eAccReg system and generate the Cancellation Certificate.

In compliance with the processing time in the Citizen’s Charter, the Cancellation Certificate must be issued within seven (7) days from receipt of the letter request of the taxpayer by the concerned RDO/LT Office. In case when inspection of the machine was dispensed with, the Cancellation Certificate shall be issued to the taxpayer within three (3) working days from receipt of the complete requirements by the RDO/concerned LT Office.

The concerned LT Office/RDO shall approve the application for PTU through the eAccReg within three (3) days from receipt of such application as mandated under the Citizen’s Charter of the BIR.

In order to authorize the simultaneous registration in eAccReg system of the new accredited software or upgraded software to be installed in the same machine with application for cancellation of the old software, the taxpayer shall secure approval in writing from the concerned LT Office/RDO to add a distinct prefix/suffix to the serial number of the sales machine to allow registration of the new software (consisting of serial number of machine followed by prefix/suffix e.g., 123456A).

The policies, requirements and procedures in Revenue Memorandum Circular No. 72-2018 apply only to machines that were found during Post-Evaluation to have been requested for cancellation of PTU but have not been acted upon by the concerned LT Office/RDO. Otherwise, the provisions on cancellation of PTU under this Circular shall apply.

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