Approval of Permit to Use Loose-Leaf Books of Accounts/Invoices/Receipts and Other Accounting Records

August 10, 2017 REVENUE MEMORANDUM CIRCULAR NO. 068-17 SUBJECT : Approval of Permit to Use Loose-Leaf Books of Accounts/Invoices/Receipts and Other Accounting Records TO : All Regional Directors, Revenue District Officers, Internal Revenue Officials, Employees and Others Concerned It has been observed that there is a confusion on the venue for filing the application for Permit to Use (PTU) Loose-leaf Books of Accounts/Invoices/Receipts and other Accounting Records whether with the National Accreditation Board (NAB) in the National Office, Regional Office or Revenue District Offices. This came about when the applications for PTU for Computerized Books of Accounts/Computerized Accounting Systems and Accreditation of Cash Register Machines, Point-of-Sales and other Receipting Software were transferred to the NAB. The question arose if the application for PTU Loose-leaf Books of Accounts/Invoices/Receipts and other Accounting Records should now be filed with the NAB. The use of Loose-leaf Books of Accounts/Invoices/Receipts and other Accounting Records is a recording of transactions through encoding of details/descriptions in the computer and generate copy by printing out using approved loose-leaf format to be bound as the bookkeeping record of the taxpayer. This is considered as computer-aided under manual recording. Thus, this should not be filed with the NAB. Currently, the approval of the application for PTU Loose-leaf Books of Accounts/Invoices/Receipts and other Accounting Records is within the jurisdiction of the Regional Director through its Legal Division pursuant to Revenue Memorandum Circular (RMC) No. 13-82. Considering the geographical location of the Regional Offices compared to the Revenue District Offices which are authorized to record the approved PTU for compliance with the secondary registration requirement, the processing will take a number of days. In line with the "Ease of Doing Business," processing of application and issuance of the corresponding PTU Loose-Leaf Books of Accounts/Invoices/Receipts and other Accounting Records shall now be done by the concerned RDO. The requirements for evaluation and approval of the said application by the RDO where the principal office of the taxpayer is registered, remain the same as follows: 1. Duly accomplished BIR Form No. 1900; 2. Sample Format and print-out to be used; 3. In lieu of the investigation pursuant to RMC No. 13-82, a Sworn Statement specifying the following: i. Identifying the books to be used, invoices/receipts and other accounting records together with the serial numbers of principal and supplementary invoices/receipts to be printed; ii. Commitment to permanently bind the loose-leaf forms within fifteen (15) days after the end of each taxable year or upon the termination of its use. The PTU Loose-leaf issued to the taxpayer's Head Office shall cover all identified registered branches and shall be valid in any RDO where the taxpayer has registered branches at the time of issuance (refer to Annex 'A' for the sample PTU). Updating of PTU shall be required for subsequent additional branches. A certified true copy of the PTU issued by the RDO of the Head Office must be furnished to each branch authorized to use the approved Loose-leaf. All other circulars and other revenue issuances inconsistent herewith are hereby amended, modified or revoked accordingly. All internal revenue officers and employees are enjoined to give this circular as wide a publicity as possible. (SGD.) CAESAR R. DULAY Commissioner of Internal Revenue ANNEX A REVENUE REGION NO. 7-QUEZON CITY RDO NO. 040-CUBAO PERMIT NO.: LLAR-RDO-MMYY-XXXXX DATE OF ISSUE: 30 JANUARY 2017 PERMIT TO USE (PTU) LOOSE-LEAF Books of Accounts/Invoices/Receipts and Other Accounting Records TIN: 257-185-805-00000 ANNO SEYOU, INC. 27 CONGRESSIONAL AVE., COR. AKBAG ST. MIRANILA HOMES SUBD. BRGY. PASONG TAMO, TANDANG SORA, QUEZON CITY Gentlemen: Permit is hereby granted on your application for Permit to Use Loose-Leaf, subject to the requirements contained in BIR Revenue Memorandum Circular No. 13-82 dated May 28, 1982, as amended: Receipts/Invoices/Accounting Records Sales Invoice Collection Receipt Debit & Credit Memo Books of Accounts Voucher Register Journal Book General Ledger Cash Receipt Book Purchase Book At the close of each calendar/fiscal year or upon the termination of your use thereof, but not later than fifteen (15) days after the end of each taxable year, the loose-leaf forms authorized to be used should be permanently bound and serially numbered. A certificate under oath as to the correctness of the entries therein and the number of the loose-leaf used for the period covered should be made and submitted to the RDO/LTAD/LTD/ELTRD for verification and authentication. All your books of accounts and other accounting records as well as the loose-leaf forms authorized to be used herein should be preserved intact, unaltered and unmutilated for a period of not less than ten (10) years in the same manner as your other principal books of accounts are kept, pursuant to the provisions of Revenue Regulations 17-2013, as amended. Should you change your present loose-leaf form with permanent bound ones, the same should first be presented to the RDO/LTAD/LTD/ELTRD concerned for approval and registration before they are used. Any violation of the provisions of the Bookkeeping Regulations shall be sufficient ground for the cancellation or withdrawal of this permit. This Permit to Use Loose-Leaf forms shall be valid in any RDO and shall cover all the identified registered branches: TIN BUSINESS NAME REGISTERED ADDRESS 1. 257-185-805-00001 A-1 KOH SEYOU 85 Salcedo Village, Makati City 2. 257-185-805-00002 LENNY ROGERS SPA 85 Quezon Ave., South Triangle, Quezon City 3. Any additional branches will require updating of this permit by surrendering the original copy. <attached separate sheet with RDO/ACIR LTS signature, if necessary> _______________________________________ Revenue District Officer/Assistant Commissioner RDO No. 40-Cubao/LTS