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Tax Notes: COA 5-year validity for sales machines and receipting software

PREVIOUSLY, the Bureau of Internal Revenue (BIR) laid down its guidelines for the accreditation of CRM/POS machines and other sales machines/receipting software through Revenue Memorandum Circular (RMC) No. 30-2015 and RMC No. 68-2015. Both RMCs state that all new applications for accreditation of CRM, POS machines and other sales machines/receipting software will be processed at the BIR National office only and will have a validity period of five years from the date of issuance of the COA.

As a clarification, the BIR in its recent RMC No. 55-2016, states that all COA that were issued prior to the aforementioned revenues issuances shall still be valid and in effect based on its “Date of Issuance” with staggered implementation, as follows:

Date of Issuance on the COA Valid Until
Prior to July 31, 2013 July 31, 2018
Aug. 1, 2013 to July 31, 2014 July 31, 2019
Aug. 1, 2014 to July 31, 2015 July 31, 2020
Aug. 1, 2015 onwards Five-year validity period commences

For example, COA issued on Aug. 1, 2006 will expire on July 31, 2018.

To facilitate the staggered implementation, the date of issuance and validity period must be printed at the bottom of the official receipts, sales invoice and other commercial invoices.

The developer/dealer/supplier-vendor/pseudo-supplier of CRM, POS, other sales machines and receipting software will apply for renewal of accreditation within 60 days prior to the expiration of the validity period.

Please be guided accordingly.

P&A Grant Thornton
Certified Public Accountants
Punongbayan & Araullo (P&A) is the Philippine member firm of Grant Thornton International Ltd.

As published in Sun Star dated 23 May 2016