REVENUE MEMORANDUM ORDER NO. 12-2012 issued on May 16, 2012 prescribes the guidelines and procedures in the implementation of the Electronic Sales (eSales) Reporting as provided under Revenue Regulations (RR) No. 5-2005, as amended, by taxpayers using Cash Register Machines (CRM), Point of Sales Machines (POS) and other invoice/receipt generating machines, and for other purpose. All taxpayers using CRMs, POS machines and other invoice/receipt generating machines enrolled in the eSales System, with or without sales transaction, are required to submit monthly sales report per machine to the BIR through the eSales System. The monthly sales report shall contain the following information: a. Machine Identification Number (MIN); b. Month and year of sales being reported; c. If the same machine is being used for sales that are subject to VAT (including VAT exempt sales), and for sales that are subject to other Percentage Taxes, the breakdown of sales must be provided as follows: i. VATable Sales (net of VAT); ii. VAT Zero-rated Sales; iii. VAT exempt Sales; iv. Sales subject to other Percentage Taxes; NOTE: This breakdown of sales is required only when the same machine is capable of segregation; otherwise, the gross monthly sales per machine shall be the total or sum of the recorded sales. d. Serial Number of the last Invoice/Receipt or Transaction Number issued for the month being reported. Such monthly sales report per machine shall be submitted on or before the 8 th day of the month (for taxpayers whose last digit of the 9-digit TIN is even number) and 10th day of the month (for taxpayers whose last digit of the 9-digit TIN is odd number) following the sales period. All taxpayers using CRMs, POS machines and other invoice/receipt generating machines are required to enroll their authorized user in the eSales System in order to access the said system. A duly notarized letter from the President/owner or any authorized officer of the company (single proprietorship) indicating the authorized user using the required format shall be submitted to the Large Taxpayers Assistance Division, Excise Taxpayers Regulatory Division or Large Taxpayers District Office (LTDO)/Revenue District Office (RDO) where taxpayer is registered prior to enrollment in the eSales System. Enrollment can be done by either the head office or the branch using the machines. Only one (1) user for the head office and one for each branch shall be allowed to enroll in the eSales System. However, they may request for additional user subject to the approval of the Head of the concerned Large Taxpayers Office/RDO considering the taxpayer’s policy on who will be submitting the monthly sales report. All machines enrolled in the eSales System, with or without sales transactions, shall be reported until such time that the permit to use and Machine Identification Number (MIN) have been cancelled. These include the following: (i) machines with request for cancellation of the permit to use and the MIN but are still pending with the concerned Large Taxpayers Service (LTS) Office/RDO as of the time of sales reporting; (ii) machines that are not operational and defective but permit to use has not yet been cancelled; and (iii)machines that were registered as stand-by or back-up units. Sales reporting can be done using either the online encoding or file upload method. The file format required for the monthly sales report using the file upload method can be downloaded from the BIR web using the eSales System. In case the eSales System is unavailable on the deadline of submission of the monthly sales report, the taxpayer must submit the monthly sales report in soft copy (CD format) using the prescribed format to the concerned LTS Office/RDO following the procedures prescribed in “Annex C” of the Order on or before the 3rd day following the deadline. In case of multiple submissions or amendments of the monthly sales report, the most recent submission shall be considered as the final monthly sales report. Amendments of monthly sales report for a particular month can be done up to 3 times. However, machines whose monthly sales report have been amended more than 3 times for the same sales period shall be subject for validation/inspection by the concerned LTS Office/RDO, provided that no electronic Letter of Authority (eLA)/Letter Notice (LN) has been issued covering the said particular month. Otherwise, the incident report must be consolidated with the ongoing audit/investigation covered by the eLA/LN. For every submission of the monthly sales report, the eSales System will assign a Sales Report Number (SRN) to acknowledge the receipt of such report by BIR. Submission of monthly sales report can be done up to 11:59 pm on due date. However, for this purpose, the time of the BIR shall be considered the official time in determining whether the taxpayer submitted within the deadline. In case the deadline falls on a non-working day, the next working day shall automatically be considered the due date. The Information Systems Operations Service Data Center (ISOS DC)/concerned Revenue Data Center (RDC) generate the reports specified in the Order every 15th of the month for submission to the concerned LTS Offices/RDOs. ISOS DC/RDC shall handle technical issues and concerns raised by the taxpayers, while operational issues shall be handled by the concerned LTS Office/RDO. The Systems Operations Division-Information Systems Operations Service (SOD-ISOS) shall generate the following reports every 15th of the month for submission to the Assistant Commissioner-LTS/Regional Director, copy furnished the Deputy Commissioner, Operations Group: a. Summary Report of Compliance per RDO by Region as of _______, 20__ (Annex L) b. Sales Matching Report (Annex M), copy furnished the concerned LTS Office/RDO All existing CRMs, POS machines and other invoice/receipt generating machines without MIN shall be required to be registered through the Electronic Accreditation and Registration (eAccReg) System. Upon generation of the new permit to use, the manually issued/old permit to use shall be deemed revoked. Hence, the permit to use sticker previously issued should be surrendered to the concerned LTS Office/RDO, which shall be replaced with a new permit to use sticker indicating the new permit to use number and MIN. Any taxpayer found to be still using the old permit to use which has been cancelled/revoked shall be subject to the applicable penalty. Cancellation of permit to use shall be allowed under the following circumstances: a. Retirement of machines due to: i. Closure of business ii. Change of hardware b. Transfer of ownership/place of use: i. From one taxpayer to another taxpayer ii. From one branch to another branch except roving machines iii. Due to merger of companies with respect to the absorbed company(ies) c. Erroneous registration of machine with respect to the following: i. TIN ii. Branch Code iii. Classification of POS Machine d. Change in software or major upgrade of software The request for cancellation of permit to use shall be submitted by the large taxpayer to the LTS Office having jurisdiction over its registered address, or to the RDO having jurisdiction over the address where the machine is located for non-large taxpayer. Inspection of the machines of a large taxpayer shall be handled by the concerned LTS Office except outside Metro Manila or RDO having jurisdiction over the address where the machines are located for a non-large taxpayer. For LTDO-Cebu, branches of its taxpayers located outside the Cebu area shall be handled by the concerned LTS Office/RDO having jurisdiction over the address where the machines are located. The corresponding Certificate of Cancellation shall be issued accordingly by the concerned LTS Office or RDO. In cases where the reason for cancellation of the permit is due to change of hardware, the taxpayer is required to request for a BIR representative from the concerned LTS Office/RDO where taxpayer is registered to witness the disposal of the machines. Taxpayers who will be found not submitting the required monthly sales report for 3 consecutive months per machine shall be subjected to the following sanctions in addition to the penalty imposed under RR No. 5-2005: 1 st Offense – Reminder Letter 2 nd Offense– Machine Inspection/Post Evaluation 3 rd Offense– Revocation of Permit to Use/Cancellation of MIN Moreover, payment of penalty does not relieve the taxpayer from the submission of the monthly sales report; otherwise, the issuance and enforcement of Subpoena Duces Tecum shall be made in strict compliance with the procedures enunciated in Revenue Memorandum Order (RMO) No. 88-2010 and other applicable revenue issuances and Taxpayers Compliance Verification Drive (TCVD) under RMO No. 3-2009 and to other enforcement measures that may be undertaken to compel taxpayer to fully comply with the Order. During the transition period, the following guidelines shall be followed in cleaning-up and updating the registration database: a. Taxpayers using CRMs, POS machines and other invoice/receipt generating machines which are not registered with the BIR shall apply for registration/permit to use using the eAccReg System. b. Taxpayers must apply for the cancellation of the permit to use issued by the concerned LTS Office/RDO for CRMs, POS machines and other invoice/receipt generating machines which have been registered but are not being used or have been retired as of the effectivity of the required sales reporting. c. RDO shall continue to process all pending applications for cancellation of permit to use filed by the taxpayer prior to the roll-out of the eSales System. d. The concerned LTS Office/RDO shall use the “Cancel MIN Module” in the eSales System to cancel all machines that were issued permit to use CRM/POS prior to the effectivity of RR No. 11-2004 and were issued MIN under the eSales System, where an approval for cancellation of such permit to use has been granted by the concerned LTS Office/RDO. Such must be done within 5 working days upon receipt of such approval for cancellation by the concerned LTS Office/RDO. e. Taxpayer who are using handheld devices for the purpose of acknowledging payments/collections but were issued permit to use CRM/POS and MIN shall request for their cancellation with the concerned LTS Office/RDO that has jurisdiction over such taxpayer. The taxpayer shall apply for a permit to use Special Purpose Machine (SPM) as a replacement for the cancelled permit to use sales machine. Accordingly, any report made in the eSales System prior to the cancellation of such permit to use and MIN shall be amended immediately. The Order shall take effect on January 2012. However, for non-large taxpayers the initial reporting for the months of January to June shall be on July 8 or 10, 2012, whichever is applicable.