Tax Alert No. 47 [Revenue Memorandum Circular (RMC) No. 123-2022 dated 30 August 2022]

04 Sep 2022

Clarifications on the Provisions of Revenue Regulations No. 6-2022 Relative to the Removal of the Five (5) - Year Validity Period on Receipts/Invoices

RMC No. 123-2022 has been issued to clarify the following matters regarding the removal of the five (5) - year validity period on receipts/invoices:

The effectivity date of RR No. 6-2022 is 16 July 2022, which is fifteen (15) days from its publication date.
All taxpayers who are/will be using Principal and Supplementary Receipts/Invoices as well as those with/who will apply for Authority to Print (ATP), Registration of Computerized Accounting System (CAS)/Computerized Books of Accounts (CBA) and/or its components, or Permit To Use (PTU) Cash Register Machines (CRM)/Point of Sale (POS) Machines and Other Sales Receipting Software, shall be covered by the aforesaid RR.
Receipts/invoices that have a 5-year validity period that expired on or before 15 July 2022 are no longer valid, and the taxpayer can no longer issue them. These shall be surrendered to the Revenue District Office (RDO) where the Head Office or Branch is registered, pursuant to the provisions of Revenue Memorandum Order (RMO) No. 12-2013. All unused and expired receipts/invoices together with an inventory listing shall be surrendered by the taxpayer on or before the 10th day after the validity period.
However, if the 5-year validity period of the Receipts/Invoice falls on 16 July 2022 onwards, these are valid and can still be issued until fully exhausted. The phrase “THIS INVOICE/RECEIPT SHALL BE VALID FOR FIVE (5) YEARS FROM THE DATE OF ATP” and the “Validity Period” reflected on the printed receipts/invoices shall be disregarded.
No penalties shall be imposed on taxpayers whose existing ATP expired on or before 15 July 2022, and failed to apply for a subsequent ATP not later than the sixty (60) days mandatory period prior to expiration. However, taxpayers who issued receipts/invoices that expired prior to 15 July 2022 shall be subject to penalties amounting to PHP20,000 and PHP50,000 for the first and second offense, respectively.
All applications for the registration of CAS and/or its components and for the accreditation of CRM/POS Machines and other Sales Receipting software shall no longer require the phrases containing the 5-year validity period to be reflected on the footer of the system-generated receipts/invoices.
Taxpayers with registered PTU CRM/POS Machines/CAS are allowed until 31 December 2022 to reconfigure and remove the phrases containing the 5-year validity period from their system-generated receipts/invoices. A written notification is no longer required to be submitted to the concerned RDO.