Decentralization on the Accreditation of CRMs, POS Machines, Sales Receipting Software, and Other Sales Machines Generating Receipts/Invoices

April 10, 2019 REVENUE MEMORANDUM CIRCULAR NO. 049-19 SUBJECT : Decentralization on the Accreditation of Cash Register Machines (CRMs), Point-of-Sale (POS) Machines, Sales Receipting Software, and Other Sales Machines Generating Receipts/Invoices at the National Office, Revenue Region and Revenue District Office Levels TO : All Internal Revenue Officials, Employees, and Others Concerned Pursuant to Section 237 of the National Internal Revenue Code (NIRC) of 1997, as amended by the Tax Reform for Acceleration and Inclusion (TRAIN) Law, and in relation to the provisions of Revenue Memorandum Circular (RMC) No. 68-2015, this Circular is hereby issued to devolve the accreditation of all CRM, POS machines, Sales Receipting Software and other sales machines generating receipts/invoices from the National Office (NO) Revenue Regions (RRs) and Revenue District Offices (RDOs). HTcADC This Circular is aimed to improve the process of accreditation and to alleviate taxpayer-applicants from areas outside Metro Manila, from administrative costs incurred due to centralized operations. Similarly, the same is aligned with the current administration's policy on streamlining the frontline services in compliance with Republic Act (RA) No. 11032, otherwise known as "Ease of Doing Business and Efficient Government Service Delivery Act of 2018." In line with this, Accreditation Board (AB) shall be created in the LTS and RRs who shall approve, disapprove, and/or revoke the Certificate of Accreditation for sales machines/software. Thus, the NAB and AB shall have the following composition: CAIHTE 1. NATIONAL ACCREDITATION BOARD (NAB) Head : Assistant Commissioner (ACIR), Client Support Service (CSS) for Non-Large Taxpayers (Non-LTs) ACIR, Large Taxpayers Services (LTS) for Large Taxpayers (LTs) Co-Head : ACIR, Information Systems Development and Operations Service (ISDOS) Members : For Non-LTs Head Revenue Executive Assistant (HREA), CSS Head, Concerned Revenue Data Center (RDC) Chief, Taxpayer Service Programs and Monitoring Division (TSPMD) Chief, Law and Legislative Division Section Chief, Programs Development and Review Section (PDRS), TSPMD For LTs HREA, LT Programs and Compliance Group (LTPCG) Head, National Office Data Center (NODC) Chief, LT Assistance Division (LTAD) Chief, Excise LT Regulatory Division (ELTRD) Chief, LT District Office (LTDO)-Cebu Chief, LT District Office (LTDO)-Davao NAB Secretariat : For Non-LTs Staff, CSS Representative(s) from PDRS, TSPMD For LTs Staff, Office of the ACIR, LTS Staff, Office of the HREA, LTPCG 2. LARGE TAXPAYERS ACCREDITATION BOARD (LTAB) aScITE Head : HREA, LTPCG Co-Head : Head, NODC Members : Chief, Computer Operations Network and Engineering Division (CONED), NODC Chief, Concerned LT Audit Division LTAB Secretariat : Staff, Office of the HREA, LTPCG 3. REGIONAL ACCREDITATION BOARD (RAB) Head : Assistant Regional Director (ARD) of respective RR Co-Head : Head, RDC of the respective RR Members : Concerned Revenue District Officer (RDO) at the Revenue District Office where the taxpayer-applicant is registered Chief, Assessment Division of the respective RR Secretariat : Head, Client Support Unit (CSU) of the respective RR Staff from Office of the Regional Director (RD) or Assistant Regional Director 4. TECHNICAL WORKING GROUP (TWG) 4.1 REVENUE REGIONS (RRs) Head : Concerned RDO at the Revenue District Office where the taxpayer-applicant is registered Asst. Head : Chief, CONED of the nearest RDC Members : Chief, Assessment Section and/or his/her Representative from the RDO where taxpayer-applicant is registered Chief, Client Support Section and/or his/her Representative from the RDO where the taxpayer-applicant is registered Taxpayer Account Management Program (TAMP) Officer and/or his/her Representative from Assessment Section of RDO where the taxpayer-applicant is registered Representative from CONED or Facility Management Division (FMD) of the RDC TWG Secretariat : Staff from Client Support Section where the RDO where the taxpayer-applicant is registered as determined by the Head, TWG 4.2 LARGE TAXPAYERS SERVICE (LTS) 4.2.1 LT REGULAR GROUP (RDOs No. 116, 125 and 126) aDSIHc Head : Chief, LTAD Asst. Head : Chief, CONED-NODC Members : Chief, Assessment Section of the concerned LT Audit Offices TAMP Officer of the taxpayer-applicant Representative from LTAD Representative from CONED-NODC TWG Secretariat : Representative from LTAD 4.2.2 LT EXCISE GROUP (RDOs No. 121 and 124) Head : Chief, ELTRD Asst. Head : Chief, CONED-NODC Members : Chief, Assessment Section of the concerned LT Audit Offices TAMP Officer of the taxpayer-applicant Representative from ELTRD Representative from CONED-NODC TWG Secretariat : Representative from ELTRD 4.2.3 LT DISTRICT OFFICES (RDOs No. 123 and 127) TIADCc Head : Chief, LT District Office (LTDO) concerned Asst. Head : Head, CONED-RDC Visayas or Mindanao Members : Chief, Assessment Section of the concerned LT Audit Offices TAMP Officer of the taxpayer-applicant Chief, Client Support Section of the concerned LTDO Representative from CONED-RDC Visayas or Mindanao TWG Secretariat : Staff from Client Support Section of the concerned LTDO Further, the following are the general functions of the corresponding board/group: 1. NAB shall act as policy-making body pertaining to the standard policies, guidelines and/or procedures on the Accreditation of CRM, POS machines, Sales Receipting Software and other sales machines generating receipts/invoices, as may be required and/or as may be deemed necessary including resolutions of issues/concerns raised by the Accreditation Boards within their jurisdiction such as ACIR, LTS for Large Taxpayers and ACIR, CSS for Non-Large Taxpayers. A joint discussion may however be done to provide resolutions for common issues and concerns raised by both Large and Non-Large Taxpayers. Any resolution issued by either NAB-CSS or NAB-LTS may be adopted by the other, if such is applicable; 2. LTAB/RAB shall review, certify/approve, and/or deny applications for Accreditation of CRM, POS machines, Sales Receipting Software and other sales machines generating receipts/invoices under the name of taxpayer-applicants registered within their respective jurisdiction. They shall resolve/address issues within their respective area in accordance with existing issuances, fully document the facts, discussion and agreements/recommendation and submit report to the corresponding NAB through the Secretariat. In case of unresolved issues, elevate to the NAB issues/concerns with report/recommendation for further discussion and resolution; cSEDTC 3. TWG shall inspect and evaluate the CRM, POS machines, Sales Receipting Software and other sales machines generating receipts/invoices requiring the applicant to present the functionalities and/or features of the same in an actual system demonstration with the applicable conditions set forth under Revenue Regulations (RR) No. 11-2004, Revenue Memorandum Order (RMO) No. 10-2005 and RR No. 10-2015 as amended by RR No. 16-2018; 4. SECRETARIATS a. NAB Secretariats : The Secretariats from CSS and LTS shall separately accomplish the following: i. Collate all the "Consolidated Monthly Reports on the Application for Accreditations Received" (Annex "B") submitted by LTAB and RAB Secretariats for monitoring purposes; ii. Schedule a meeting for the discussion/resolution of issues/concerns raised by concerned Accreditation Board; AIDSTE iii. Document and compile all resolutions addressed by the concerned National Accreditation Board; and iv. Coordinate for joint discussion by NAB from CSS and LTS for issues/concerns which are common for both LTs and Non-LTs. b. LTAB/RAB Secretariats : i. Receive and record transmitted reports from the TWG Secretariats; ii. Consolidate and maintain database for the Receiving/Reference Control Number (RCN) for monitoring/reference purposes; SDAaTC iii. Validate completeness of documents received; iv. Schedule a meeting for review/approval of application by concerned members for resolution of issues/concerns, if any; v. Release the approval/denial of application; and vi. Consolidate the reports transmitted by TWG Secretariats and submit "Consolidated Monthly Report on the Application for Accreditations Received" (Annex "B") to the NAB Secretariat on or before the 15th of the following month. c. TWG Secretariats : i. Receive application from taxpayer-applicants; ii. Assign Receiving/Reference Control Number (RCN); iii. Schedule system demonstration/meeting for discussion of the application; iv. Facilitate the approval/signature of Accreditation Report by the TWG Head/Asst. Head and its Members; AaCTcI v. Submit Accreditation Report, whether approved or denied, including a soft copy of the report if the same was recommended for approval, to the LTAB/RAB Secretariat within one (1) day from the approval of the said report by TWG Head/Co-Head and its Members; and vi. Prepare and transmit Monthly Report on the Application for Accreditations Received (Annex "A") to the RAB/LTAB Secretariat showing the list of taxpayer-applicants, which shall be submitted on or before the 15th day of the following month. All pending applications for accreditation of CRM, POS machines, Sales Receipting Software and other sales machines generating receipts/invoices that have undergone system demonstration as of the effectivity of this RMC shall be processed by the TWG and NAB pursuant to Revenue Special Order (RSO) No. 1-2017. However, applications that have not undergone any evaluation as of the effectivity of this Circular shall be turned over to the respective RAB for the conduct of proper evaluation. All applications for accreditation shall be filed by the taxpayer-user/supplier/developer/pseudo-supplier to the respective TWG that has jurisdiction over the Head Office of such taxpayer-applicant. acEHCD All internal revenue officials and employees are hereby enjoined to give this Circular as wide a publicity as possible. This Circular shall take effect immediately. EcTCAD (SGD.) CAESAR R. DULAY Commissioner of Internal Revenue ANNEX A Technical Working Group (TWG) LT Division/Revenue District Office No. ____-_____________ Monthly Report on the Application for Accreditation Received For the Month of ________________, ________ DATE RECEIVED RCN NAME OF TAXPAYER- APPLICANT TYPE OF APPLICATION (CRM, POS Machine, etc.) MACHINE MODEL/BRAND (if applicable) SOFTWARE NAME/ VERSION NO. (if applicable) DATE OF SYSTEM DEMONSTRATION Prepared by: Noted by: ____________________________ (Signature over Printed Name) TWG Secretariat DATE: ________________ ____________________________ (Signature over Printed Name) TWG Head/Asst. Head DATE: ________________ ANNEX B Regional Accreditation Board (RAB)/ Large Taxpayers Accreditation Board (LTAB) LTS-Programs and Compliance Group/Revenue Region No. ____-_____________ Consolidated Monthly Report on the Applications for Accreditation Received For the Month of ________________, ________ DATE RECEIVED RCN NAME OF TAXPAYER- APPLICANT TYPE OF APPLICATION (CRM, POS Machine, etc.) MACHINE MODEL/BRAND (if applicable) SOFTWARE NAME/ VERSION NO. (if applicable) DATE OF SYSTEM DEMONSTRATION Prepared by: Noted by: ____________________________ (Signature over Printed Name) RAB/LTAB Secretariat DATE: _________________ ____________________________ (Signature over Printed Name) RAB/LTAB Head/Co-Head DATE: _________________