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[Ask the Tax Whiz] What do you need to know about the removal of 5-year validity of receipts/invoices?

Mon Abrea

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[Ask the Tax Whiz] What do you need to know about the removal of 5-year validity of receipts/invoices?

RECEIPTS. A pile of receipts stacked on a desk beside a calculator.

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On June 30, 2022, the BIR issued Revenue Regulations 6-2022, which removed the five-year validity period on all manual and system generated principal and supplementary invoices and receipts
Who are the covered taxpayers of RR No. 6-2022?

According to Revenue Regulations (RR) No. 18-2022, a taxpayer with expiring Authority to Print (ATP) for its receipts/invoices shall apply for a new ATP not later than 60 days prior to the expiry date. The use of receipts and invoices beyond the five-year validity renders the receipts/invoices invalid.

On June 30, 2022, the BIR issued RR 6-2022, which removed the five-year validity period on all manual and system generated principal and supplementary invoices and receipts. In other words, certain receipts/invoices may now be used beyond the five-year period. This initiative is in line with Republic Act (RA) No. 11032 or the Ease of Doing business and Efficient Government Service Delivery Act of 2018.

The removal of the five-year validity period applies to taxpayers who will use principal and supplementary receipts/invoices, or those who will apply for any of the following:

  1. ATP
  2. Registration of Computerized Accounting System (CAS)/Computerized Books of Accounts (CBA) and/or its components
  3. Permit to Use (PTU) Cash Register Machines (CRM)/ Point-if-sale (POS) Machines and Other Sales Receipting Software
What should I do in the case of unused receipts/invoices that still have a 5-year validity period?

All unused and expired receipts/invoices which expired on or before July 15, 2022, must be given to the RDO where the Head Office or Branch is registered for destruction, along with an inventory list, on or before the 10th day after the expiration date of the receipts/invoices.

Below are the guidelines that should be followed on the use of unused receipts/invoices:

When is the effective date of the removal of the 5-year validity period of the receipts/invoices?

The removal of the five-year validity period was effective on July 16, 2022. 

Can I still use the receipts/invoices with existing ATP expiring on or after July 16, 2022? 

Taxpayers with receipts/Invoices with existing ATP expiring on or after July 16, 2022 shall continue to issue such receipts/invoices until fully exhausted. The phrase “THIS INVOICE/RECEIPT SHALL BE VALID FOR FIVE (5) YEARS FROM THE DATE OF THE ATP” and the “Validity period” shall be disregarded.  

How does the removal of the 5–year validity period affect the registration of CAS and/or its components?

The phrases “THIS INVOICE/RECEIPT SHALL BE VALID FOR FIVE (5) YEARS FROM THE DATE OF THE PERMIT TO USE” and “Valid Until” is no longer required for the registration of CAS and/or its components.

Is there a deadline by which the taxpayer shall remove the phrase and validity period by reconfiguration of the CRM/POS and/or CAS and other machines generating receipts/invoices? 

In accordance with RR No. 6-2022, the CRM/POS and/or CAS and any other machines generating receipts/invoices must undergo a configuration change until December 31, 2022.

What are the penalties if I still continue to issue outdated or expired receipts?

The penalty for using expired receipts/invoices is P 20,000 for the first offense and P 50,000 for the second offense. 

Taxpayers with expired ATP on or before July 15, 2022, but failed to apply for subsequent ATP not later than sixty (60)-mandatory period to expiration shall not be liable to pay the penalty for late application of ATP. 

Do you have questions about Revenue Regulations (RR) No. 6-2022? Find out more and schedule a consultation to us by downloading the app here. – Rappler.com

References: 
Revenue Regulations No. 6-2022
Revenue Memorandum Circular No. 123-2022

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