Prescribing the Required Procedure and Electronic Format in the Submission of Quarterly List of Sales/Purchases

June 28, 2002 REVENUE MEMORANDUM CIRCULAR NO. 24-02 SUBJECT : Prescribing the Required Procedure and Electronic Format in the Submission of Quarterly List of Sales/Purchases TO : All Revenue Officials, Employees and Taxpayers Concerned Pursuant to the provisions of Section 4 of Revenue Regulations 8-2002 dated June 13, 2002 and in order to strengthen VAT administration, an automated compliance monitoring and matching system called Reconciliation of Listings for Enforcement (RELIEF) was developed and is now ready for implementation. The RELIEF System requires VAT taxpayers to submit quarterly Summary List of Sales [ (for those whose quarterly sales/receipts (net of VAT) exceeds Two Million Five Hundred Thousand Pesos (P2,500,000.00) ] and Summary List of Purchases [ (for those whose quarterly total purchases (net of VAT) exceeds One Million Pesos (P1,000,000.00) ] containing monthly totals per regular customer/supplier as well as from casual customers/buyers with individual sales amounting to One Hundred Thousand Pesos (P100,000.00) or more, in an electronic format on or before the 25th day of the month following the close of the taxable calendar or fiscal quarter, using any of the following systems: 1. Excel format; 2. Taxpayer's own Extract Program; or 3. Data Entry Module developed by the BIR (available for downloading from the BIR website (http://www.bir.gov.ph) or in diskette or CD upon request, but upon submission of a blank diskette/CD by the requesting taxpayer). In this regard, the electronic file record format for sales, purchases and importations under the RELIEF System is hereby prescribed, together with the necessary guidelines and job aids, as shown and discussed in detail in the following annexes: DESCRIPTION ANNEX A. Electronic File Record Format for SALES a. Header Record for Sales A-1 b. Detail Record for Sales A-2 c. Sample File for Summary List of Sales A-3 B. Electronic File Record Format for PURCHASES a. Header Record for Purchases B-1 b. Detail Record for Purchases B-2 c. Sample File for Summary List of Purchases B-3 C. Electronic File Record Format for IMPORTATIONS a. Header Record for Importations C-1 b. Detail Record for Importations C-2 c. Sample File for Summary List for Importations C-3 D. Guidelines on File Creation D E. Data Entry Job-Aid E F. Screening and Validation Job-Aid F The number of electronic files transmitted to the Revenue Data Center (RDC)/Information System Operations Service Data Center (ISOS-DC) shall be counted based on the transaction type per month one transaction type per month is considered one file. Transaction types are sales, local purchases and importation. A Data Validation Module shall be made available for those taxpayers who would opt to use the Excel Format or their own Extract Program. The same could be downloaded from the BIR's website or made available in diskette or CD upon request. Once the threshold amount is reached for sales or purchases, VAT taxpayers shall be required to submit the summary lists for the next three (3) succeeding quarters, regardless of whether or not such succeeding taxable quarter sales or purchases exceed the threshold amounts. The determination of the threshold amount would include taxable (net of VAT), zero-rated and exempt transactions. The quarterly summary list of sales or purchases, whichever is applicable, shall be submitted to the Revenue District Office (RDO) or Large Taxpayers District Office (LTDO) or Large Taxpayers Assistance Division (LTAD) having jurisdiction over the taxpayer. Only diskettes readable upon submission shall be considered as duly filed/submitted Quarterly Summary List of Sales and Output Tax/Purchases and Input Tax/Importations. Failure to submit the aforementioned quarterly summary lists in the manner prescribed above shall be punishable under the pertinent provisions of the Code and regulations. ETDSAc All concerned are hereby enjoined to be guided accordingly and give this circular as wide a publicity as possible. (SGD.) REN G. BAEZ Commissioner of Internal Revenue Annex A-1 Relief System Reconciliation of Listings for Enforcement FILE RECORD FORMAT FOR SALES HEADER RECORD for SALES Annex A-2 DETAIL RECORD for SALES Annex A-3 Annex B-1 FILE RECORD FORMAT FOR PURCHASES (excluding services rendered by NON-RESIDENTS) HEADER RECORD for PURCHASES Annex B-2 DETAIL RECORD for PURCHASES Annex B-3 Annex C-1 FILE RECORD FORMAT FOR IMPORTATIONS HEADER RECORD for IMPORTATIONS Annex C-2 DETAIL RECORD for IMPORTATIONS Annex C-3 ANNEX D RELIEF SYSTEM Reconciliation of Listings for Enforcement GUIDELINES ON FILE CREATION FILE NAMING CONVENTION INFORMATION: Summary List of Sales, Purchases, and Imports FILE MEDIA: 1.44 MB Diskettes FILE RECORD FORMAT: Comma Separated Value (CSV) FILE NAME: 999999999TMMYYYY.DAT where 999999999 represents the TIN of Owner of Summary List T represents the type of transaction where S is for Sales P is for Purchases I is for Importations MM represents the month of transaction YYYY represents the year of transaction CREATING THE FILE (The BIR offers the taxpayer a Data Entry Program to facilitate the creation of the Summary List of Sales and Purchases. However, if the taxpayer opts to use other file creation methods other than the Data Entry program, the BIR endorses the prescribed File Record Format and recommends that the following be used as guidelines.) One data file must contain only one type of transaction for one taxable month . Multiple transaction types for multiple taxable months within one data file will not be accepted. Following the standard file naming convention, a data file must contain only one transaction type for one taxable month. Do not use header column names . Also known as columnar headings, header column names are descriptive names used by the user to guide them on the contents of a specific column. Before saving the data file, make sure that header column names are not included in any of the rows. The first record/row must contain information on the Owner of the summary lists . For example, in the summary list of Sales, it must contain the total amount of taxable sales, the total amount of exempt sales, the total amount of zero-rated sales, and the total amount of output VAT declared by the Owner for the whole taxable month, regardless of Customer. Hence, the first record/row can be regarded as the "control record". The second and all succeeding records/row must contain information on the consolidated transactions by Customer for the month . For example, in the summary list of Sales, if the Owner had six (6) sales transactions with Customer A within the taxable month, then Customer A record will appear only once, reflecting the consolidated sales transactions for the month. Hence, all Detail records will reflect one distinct record/row for each Customer or Supplier. Follow the column sequence and the specified field type, field length, and field format , as prescribed in the File Record Format for Header and Detail Records. Default values are defined for transaction type and record type, while the TIN, Name and Address of all taxpayers are required fields. The following text fields must not contain any special characters (commas, apostrophes, quotes, colons, periods, etc.): o TIN of Owner/Customer/Vendor o REGISTERED NAME of Owner/Customer/Local or Foreign Vendor o LAST_NAME, FIRST_NAME, MIDDLE_NAME of Owner/Customer/Vendor o TRADE NAME of Owner o ADDRESS1, ADDRESS2 of Owner/Customer/Local Vendor o COUNTRY OF ORIGIN of Foreign Vendor Except for the decimal point to indicate centavos, all amount values must not contain commas or special characters. For example, P123,456,789.02 should be encoded as 123456789.02 . If the amount field pertains to a null or blank value, encode the value as zero as in 0 . If amount is less than zero use minus sign to indicate a negative value, for example 1234.50 . Text fields with number values should be left padded with zeroes . The following fields should be treated as text fields, and not numeric, hence must be able to store leading zeros, if necessary. For example: o TIN: TIN 002-567-890 should appear as 002567890 , not as 2567890 o RDO Code: RDO Code 32 should appear as 032 , not as 32 o Taxable Month: August 31, 2002 should appear as 08/31/2002 , not as 8/31/2002 The data file should be in comma-delimited text format with a .dat extension name (filename.dat). A comma-delimited file is a text file where each column/field value is separated by a comma. If diskette space is not sufficient to contain one data file, the data file should be compressed first at the hard disk. Copy the compressed file to a diskette and indicate in the sticker label that the file is compressed. DISKETTE LABELING Use a sticker label when identifying or labeling the proper diskettes Indicate the correct RDO code, TIN and Name of taxpayer on the diskette Indicate the correct data filenames contained in each diskette by following the prescribed file naming convention stated above for Summary Lists. ANNEX E TABLE OF CONTENTS PAGE A. LOG-IN 1 B. ADD/UPDATE SALES TRANSACTION 5 C. SALES INQUIRY SCREEN 7 D. GENERATE FILE 8 E. ADD/UPDATE PURCHASE TRANSACTION 9 F. PURCHASE INQUIRY SCREEN 11 G. GENERATE FILE 12 H. IMPORTS TRANSACTION SCREEN 13 I. IMPORTS INQUIRY SCREEN 14 J. GENERATE FILE 15 K. TAXPAYER LISTINGS SCREEN 16 L. UTILITIES 17 A. Login 1. Click the icon on RELIEF System Data Entry and the User Login pop up will appeal. Encode the <User Name> and <Password> , then click the <OK> button or press. 2. The BIR Relief Main Menu will appear together with the BIR System Message pop-up. Then click the <Yes> button or press. Note: The BIR System Message pop-up will appear only on the initial installation of this program to capture Owner's Information. 3. The <Owner's Information> is displayed on the screen. 4. Fill in all mandatory fields. Choose accounting period being used. The system default is Calendar Year and <Fiscal Month End> is 12. If however the Fiscal Year is being used, fill in the <Fiscal Month End > field by clicking the arrow button for month selection. The <Revert> button is used to undo encoding or when the user does not want to save the encoded data of the owner. Once the Owner's Information screen is filled up, click <Save> and <Close> buttons. TEAICc In order to update information, click <Owner Info> button on the BIR Relief Main Menu and Owner's Information screen will appear. Click <Edit> to make necessary updates, then <Save> and <Close> . 5. After saving the encoded owner's information, the BIR Relief Main Menu screen will appear. The selection buttons for RELIEF System are displayed and activated. Click the <Sales> button to encode sales transactions. 6. The Sales Transaction Menu will appear. The <Year> filed is defaulted to the current year. Click the arrow on the <Month> field to choose the month of the sales transaction, then click <Add/Update> button for data entry or the <inquire> button for inquiry. B. Add/Update Sales Transaction 7. After clicking the <Add/Update> button on the Sales Transaction Menu , the <Sales Date Entry> screen will appear. Click the <Add> button to encode new transactions. Fill in all mandatory fields. The <Total Sales> and <Total Output Tax> fields are automatically populated. The <Revert> button may be used to undo encoded data not yet saved. Click <Saved> button after encoding transactions. Click <Exit> button to go back to Sales Transaction Menu. 8. All buttons are displayed and activated when two or more transactions have been saved. User may use all activated buttons (i.e. Top>, <Next>, <Prev>, <Bottom>, <Inquiry> ) to go to other records. The <Edit> button is used if there are corrections on the saved data and the <Delete> button is used to erase saved data. Click <Exit> to go back to Sales Transaction Menu. C. Sales Inquiry 9. To inquire on a sales record, enter the year to be searched (defaulted to current year) and click <Inquire> button on the Sales Transaction Menu . The <Transaction Inquiry> screen will appear. Check the transaction month by clicking the appropriate box, then click the <Inquire> button. The >Sales Inquiry> screen will appear where files are sorted by sequence number. To sort by other categories, select and click a particular column where files will be arranged according to the chosen category (e.g. TIN, Registered Name, Last Name). 10. Click <Search> button and a <Search Entry> pop-up will appear. Encode the TIN or Registered Name/Trade Name or Taxpayer's Name (Individual) of the specific taxpayer record to be viewed, click <OK> button and the sales transaction/s of said taxpayer will be highlighted. Click <Back> button to go back to Sales Transaction Menu. D. Generate File 11. To load/save data encoded into the diskette, click <Generate File> button on the Sales Transaction Menu . A <Save As> pop up screen will appear. Specify the folder where to save the encoded data, then click <Save> button. Note: If the file created to be save is voluminous and the diskette space is not sufficient, save it first to drive (C:) and compress the file. Copy the compressed file to a new diskette and label the diskette "Compressed File". The user may use any of the following to compress files: ARJ, PKZIP, WINZIP. 12. A pop up message asking "Do you want to view the file created?" will appear. If the <Yes> button is clicked, the flat file will appear. If the <No> button is clicked, a pop up message stating that the file was successfully created will appear. Click <Ok> to go back to Sales Transaction Menu screen. E. Add/Update Purchase Transaction 13. To <Add/Update> purchase transactions, click the <Purchase> button on the BIR Relief Main Menu and Purchase Transaction Menu will appear. Then, follow procedures on encoding sales transactions (step no. 7). 14. The <TIN> field on the Purchase Data Entry is mandatory. <Total Purchases>, <Taxable {Net of VAT> and <Total Input Tax> fields are automatically computed and filled in. Purchase Data Entry Screens 15. All buttons are displayed and activated when two or more transactions have been saved. User may use all activated buttons (i.e. <Top>, <Next>, <Prev>, <Bottom>, <Inquiry> ) to go to other records. The <Revert> button is used to undo encoding or when the user does not want to save the encoded data. The <Edit> button is used if there are corrections on the encoded data and the <Delete> button is used to erase data. F. Purchase Inquiry Screens 16. To inquire purchases transactions, click <Inquire> button on the Purchase Transactions Menu and the <Transaction Inquiry> screen will appear. Check the transaction month by clicking the mouse for inquiry on a given period then click the <Inquire> button. <Purchase Inquiry Screen> will appear. Click <Search> button. 17. This is the <Search Entry> pop-up screen. Search criteria can either be TIN, Registered Name or Taxpayer Name (Individual). Click the <OK> button and the data of the selected taxpayer will be highlighted. Click the <Back> button to go back to Purchases Transaction Menu . G. Generate File 18. To load/save data encoded into the diskette, click <Generate File> button from the Purchase Transaction Menu . A <Save As> pop up screen will appear. Specify the folder where to save the encoded data then click <Save> button. Note: If the file created to be saved is voluminous and the diskette space is not sufficient, save it first to drive (C:) and compress the file. Copy the compressed file to a new diskette and label the diskette "Compressed File". The user may use any of the following to compress files: ARJ, PKZIP, WINZIP. 19. A pop up message asking "Do you want to view the file created?" will appear. If the <Yes> button is clicked, the flat file will appear. If the <No> button is clicked, a pop up message stating that the file was successfully created will appear. Click <Ok> to go back to Purchase Transaction Menu screen. H. Imports Transaction Screens 20. For importation data entry, click <Importations> button on the BIR Relief Main Menu and Imports Transaction Menu will appear. Then, follow the procedures in encoding sales transactions. 21. The <Import Entry No> and <OR Number> fields are mandatory. If there are multiple ORs for one Import Entry No., click the <Add> button and encode the OR Number of the second transaction for the same Import Entry No. <All Charges Before Release from Customs Custody> and <VAT> fields are automatically computed. I. Imports Inquiry Screens 22. To inquire import transactions, click <Inquire> button on the Imports Transaction Menu and <Transaction Inquiry> screen will appear. Check the transaction month by clicking the mouse for inquiry on a given period then click the <Inquiry> button. <Imports Inquiry Screen> will appear. Click <Search> button. 23. The <Search Entry> pop-up screen will appear. Search criteria can either be Import Entry No., Name of Seller or Trade Name. Click the <OK> button and the data of the taxpayer you want to inquire will be highlighted. Click the <Back> button to go back to Imports Transaction Menu. J. Generate File 24. To load/save data encoded into the diskette, click <Generate File> button from the Imports Transaction Menu. A <Save As> pop up screen will appear. Specify the folder where to save the encoded data then click <Save> button. Note: If the file created to be saved is voluminous and the diskette space is not sufficient, save it first to drive (C:) and compress the file. Copy the compressed file to a new diskette and label the diskette "Compressed File". The user may use any of the following to compress files: ARJ, PKZIP, WINZIP. 25. A pop up message asking "Do you want to view the file created?" will appear. If the <Yes> button is clicked, the flat file will appear. If the <No> button is clicked, a pop up message stating that the file was successfully created will appear. Click <Ok> to go back to Imports Transaction Menu screen. K. Taxpayer Listings Screen 26. The Taxpayer Listings screens may be used to add new taxpayers, update or delete taxpayers' data previously encoded in the <Sales>, <Purchase> and <Import> Data Entry screens. Users may use all activated buttons ( i.e. <Top> <Next>, <Prev>, <Bottom> ) to go to other records. Click <Find> button and <Search> pop-up screen will appear. 27. This is the <Search> pop-up screen. Click the <Field> and <Operator> fields to display the List of Search Criteria. Select the desired search criteria and encode the corresponding data of the taxpayer on the <Value> field (e.g. If the TIN is chosen as the search criteria, the <Value> filed must contain the TIN 150600700) Click <Search> button and the data of the taxpayer to be viewed will be displayed. Click the <All> button to view all records previously encoded. Click <Cancel> button to go back to Taxpayer Listings screen. L. Utilities Note: Click <Utilities> button on the BIR Relief Main Menu and Utilities and Admin Menu screen will appear. Select and click the button to be used. Note: To delete other users, click the Delete User button on the Utilities Menu screen, then the Delete User Login screen will appear. Only user with "ROOT" Access Code can delete other users with code "ADD" and "INQ". Note: To change password, click the Change Password button on the Utilities Menu screen, then the Change Password screen will appear. Fill in all enterable fields, then click OK . Note: To add user, click the <Add New User> button on the Utilities Menu screen, then the Add New User screen will appear. Fill in all enterable fields, then click OK. Note: To purge/archive transactions, click the <Purging & Archiving> button on the Utilities Menu screen, then the Purging and Archiving Menu screen will appear. Click the button on the <Month> field and choose the month to be purge/archive, then fill in the <Year> field. Select and click the button to be purge/archive ( <Sales>, <Purchases>, and <Importation> bottons). Note: The BIR System Message pop-up will appear stating the number of transactions that have been archived. Click the <Ok> button and another pop-up message asking "Would you like to continue purging/deleting these records?" will appear. Clicking the <Yes> button will delete the records. Annex F - Screening and Validation of Relief Diskettes and Data Files June 2002 PART I Screening Procedures for RELIEF Diskettes & Data Files 1. Scan diskette/s for virus. 2. If virus is detected and the same cannot be deleted/cured, return diskette/s to taxpayer for replacement. If virus is successfully deleted or when no virus is found, proceed to the next step. 3. Check proper labeling of the diskettes. The label should indicate the following information: RDO Code Owner's TIN Owner's Registered Name Filenames (for all files in the diskette) 4. The diskette should contain all files as indicated on the stick-on label. 5. The diskette submitted containing voluminous files should be labeled "Compressed File/the software used" (i.e. WINZIP, PKZIP or ARJ). 6. Check if filename conforms to the standard filename convention 999999999TMMYYYY.DAT, where: 999999999 represents the TIN of the owner without the branch code T represents the type of transaction which may either be: S Sales P Purchases I Importation MM represents the month of transaction YYYY represents the year of transaction .DAT represents the file type 7. Affix the word, "Screened" and write initials on the diskette stick-on label. 8. Check/ensure completeness and validity of data by using the RELIEF Validation Module. Note: SCREENING refers to the manual checking of labels on diskettes, filenames and files therein contained. PART II RELIEF Validation Module (Procedures for Validating RELIEF Data Files) 1. To validate RELIEF diskette and data files, click Validation Module icon and the Relief Validation Module screen will appear. Note: Validation is auto-checking of data conformity with prescribed data structure. Encode the TIN (9 digit TIN without RDO or Branch Code) of the owner at the <TIN of Owner Listings> field. Click the button on the <Month> field to choose the transaction date to be validated. The <Year> field is defaulted to the current year. 2. Click button on the <Transaction Type> field to choose the transaction type to be validated, then click <Validate File> button. 3. After clicking the <Validate File> button, a directory screen will appear. From the directory screen choose and click the filename corresponding to the type of transaction to be validated. Filenames contain the following letters depending on the transaction to be validated S = Sales; P = Purchases; and I = Importations (e.g. 122343546S062002). Then click <validate> button to continue the process. 4. A Log Directory screen will appear. The default directory is "reports". The user may choose the folder where to save the report generated after validation, then click <Select> button to complete the validation process. 5. After validation, the report generated will automatically appear. This report will indicate any errors found during validation. Otherwise, the report will specify that no errors were encountered. Click X at the upper right corner to close the Notepad window. 6. If the filename used is incorrect, BIR System Message screen will appear asking "Do you want to Standardize the name of your File to be submitted to BIR?", click <Yes> button. If filename already conforms with the standard filename convention, click <No>. 7. Another BIR System Message screen will appear indicating that the filename was renamed to the standard format. Click the <OK> button to go back to the Relief Validation Menu screen. Affix on the diskette stock-on label the word "VALIDATED" as well as the initials of the user (who validated the transaction). Other Scenarios 8. To view the validation report, click <View Report> button. 9. A Directory screen will appear. Highlight the validation report file corresponding to the type of transaction to be viewed, then click the <View> button. 10. The validation report file of the chosen transaction will appear. Click X at the upper right hand corner to close notepad window and return to Relief Validation Menu screen. 11. To view data file, click <View Flat File> button. 12. A Directory screen will appear. Choose the file corresponding to the type of transaction to be viewed, then click the <View> button. 13. The data file of the chosen transaction will appear. Click X at the upper right corner to close notepad window and return to Relief Validation Menu screen. TEHIaA