Have you nearly used up or issued all your receipts/invoices and are now planning to get new sets? Or are you preparing to start a new business and don’t know where to get the receipts/invoices you need? Or perhaps you have loads of these in your possession but all were printed in 2012? If you happen to be anyone of the above, you may consider Revenue Regulations No. 18-2012 (RR No. 18-2012) issued by the Secretary of Finance which prescribes the full automation in the application, generation, approval and issuance of Authority to Print (ATP) Official Receipts (ORs), Sales Invoices (SIs) and other Commercial Invoices (CIs) through web-based application, more particularly the OnLine ATP system of the Bureau of Internal Revenue (BIR). RR No. 18-2012 also provides for the additional requirements for the printing of ORs, SIs, and other CIs.
Under RR No. 18-2012, all unused and unissued ORs, SIs, and other CIs (also called supplementary invoices) printed prior to its effectivity will remain valid until June 30, 2013. The taxpayer will have to surrender to the Revenue District Office (RDO) where the taxpayer is registered all unused and unissued ORs, SIs, and other CIs after the validity period. For this purpose, the taxpayer is given until July 10, 2013 to surrender all unused and unissued ORs, SIs, and other CIs.
Once again, the BIR reminded the taxpayer-applicant that they can only engage the services of an accredited printer for the printing of ORs, SIs, and other CIs. These accredited printers are exclusively authorized by the BIR to print principal and supplementary receipts/invoices. It will do well for the taxpayer-applicant to ask the RDO where he is registered for the list of accredited printers.
In coming up with an online ATP System, the BIR has once again tapped the internet to enhance the agency’s service delivery to its stakeholders. In using the internet as platform, the BIR will simplify and cut down the manual processes involved in the application, generation, approval and issuance of ATP. Gone were the days when a taxpayer applies for ATP from BIR through the manual processes. With this, a taxpayer who is planning to procure principal and supplementary receipts/invoices will simply apply for an Authority to Print ORs, SIs, and other CIs via the on-line ATP System of the BIR. The submission of required documents, the approval and subsequent issuance of ATP to the taxpayer-applicant are also done through the online ATP System.
The issuance of ATP for the printing of receipts/invoices is not automatic though. The BIR will not issue the ATP unless the required information are reflected in the application for ATP and in the principal and supplementary receipts/invoices. The required information includes serial number, exact address of the home office (HO) or branch office, Taxpayer Identification Number, branch code (if applicable) and the information prescribed under special laws which grant special privileges/discounts to senior citizens and persons with disability. In all instances, the HO and each of the branch offices are required to separately apply for ATP and must have their own independent series of serial numbers.
In moving forward, the BIR said that all issued ATPs through the BIR online ATP system will now have a validity period of five years from issuance of the ATP or the full usage of the inclusive serial numbers of the ORs, SIs, and other CIs reflected in the ATP, whichever comes first. A taxpayer with expiring ATP for its invoices/receipts shall apply for a new ATP not later than 60 days prior to the actual expiry date.
RR No. 18-2012 also clarifies the proper use of principal receipts or invoices. For the sale of goods and/or properties, Value-Added Tax (VAT) or non-VAT sales invoices should be issued. But for the sale of services and/or leasing of properties, VAT or non-VAT official receipts ought to be issued. This resolves the confusion among some taxpayers in the issuance of ORs vis-a-vis SIs. It has been observed that some taxpayers were issuing ORs for the sale of goods and/or properties instead of SIs or the other way around in the case of sale of services and/or leasing of properties. This could create potential tax complications for the taxpayers, such as inability to claim input tax credits due to wrong substantiation. It is advisable if the taxpayers understand the characterization of their sales and purchases to determine which receipt/invoice is the proper substantiation.
RR No. 18-2012 further clarifies that other CIs should be registered. These other CIs could be delivery receipts, debit and/or credit memos, purchase orders, job orders, bills of lading, billing statements, statements of account, and any documents used in the ordinary course of business being issued to customers or otherwise.
After all is said and done, the online ATP system is not yet up and running. Hopefully, the BIR will launch the ATP system sooner rather than later. But for now, the filing of all applications for ATP and the approval of the same and issuance of the ATP will be through manual processes at the Revenue District Office having jurisdiction over the taxpayer’s HO. And so with RR No. 18-2012, has getting the ATP been made easy?
Glenn Raymond O. Paradela is a supervisor from the tax group of Manabat Sanagustin & Co., the Philippine member firm of KPMG International.
This article is for general information purposes only and should not be considered as professional advice to a specific issue or entity. The views and opinions expressed herein are those of the author and do not necessarily represent the views and opinions of KPMG International or MS&Co. For comments or inquiries, please email manila@kpmg.com or rgmanabat@kpmg.com.