Prescribing Work-Around Procedures in the Accreditation of Printers as a Prerequisite to the Printing of Official Receipts, Sales Invoices and Other Commercial Receipts and/or Invoices

May 2, 2013 REVENUE MEMORANDUM ORDER NO. 013-13 SUBJECT : Prescribing Work-Around Procedures in the Accreditation of Printers as a Prerequisite to the Printing of Official Receipts, Sales Invoices and Other Commercial Receipts and/or Invoices TO : All Internal Revenue Officers and Others Concerned SECTION 1. Objectives . This Order is issued to provide work-around procedures pending the availability of the Online System for Accreditation of Printers (OSAP) pursuant to Revenue Regulations No. 15-2012 dated December 3, 2012. ESCacI SECTION 2. Policies and Guidelines . The following policies and guidelines shall be observed by all concerned parties until such time the OSAP is implemented: 1. All registered printers in the Integrated Tax Systems (ITS) who applied for accreditation, and were initially evaluated by the Revenue District Offices (RDOs)/offices under Large Taxpayers Service (LTS) as to the completeness of the documentary requirements per Operations Memorandum dated January 24, 2013 shall be published or posted in the BIR website as deemed Accredited Printers. 2. A Provisional Accreditation Number shall be issued to all deemed Accredited Printers. Provisional accreditation shall be given validity period of six (6) months from posting in the BIR website. 3. A Certificate of Accreditation with Permanent Accreditation Number shall be issued to the printer only after evaluation and approval by the National/Regional Accreditation Board or N/RAB (refer to National/Regional Machine Accreditation Board [NMAB/RMAB] per Revenue Regulations No. 11-2004 on the composition of members, with the exclusion of those under the Information Systems Group [ISG]). 4. The Accredited Printers with Certificate of Accreditation shall cease using the assigned provisional accreditation number. Henceforth, the Permanent Accreditation Number shall be used in printing the Official Receipts, Sales Invoices and Other Commercial receipts and/or invoices. 5. The deemed Accredited Printers which were issued Revocation Notices upon notification shall not be allowed to apply for Authority to Print (ATP) Receipt and Invoices. However, all receipts and invoices printed by these printers shall remain valid until its expiration or until its full utilization whichever comes first. 6. All printers issued with the Letter of Denial/Revocation Notice who intend to be accredited will observe the same procedure as a new application for accreditation and shall undergo the same accreditation process. TaCDAH 7. A list of registered printers in the Integrated Tax Systems (ITS) and tagged as TP ENGAGED IN PRTG for at least three (3) years as of December 31, 2012 shall be the initial candidates for accreditation. SECTION 3. Manual Procedures on Accreditation of Printers . A. Taxpayer Service Section (TSS) of RDO or Division/Office under LTS 1. Receive Sworn Statement as Application for Accreditation (Annex A) including attachments as required in the checklist from the applicant-printer; 2. Evaluate the application as to completeness of documents within the day of receipt of application. Ensure that requirements per Checklist (Annex B) are complete except for the on-site inspection to be performed during the post evaluation. For disapproved applications, inform applicant-printers on the results of initial evaluation stating the reason(s) why the application was disapproved duly indicated in the Letter of Denial (Annex F); 3. Upon verification of completeness per initial evaluation, submit list of printers for accreditation to the Office of the Assistant Commissioner, Taxpayers Assistance Service (TAS) Attention: Taxpayer Service Programs & Monitoring Division (TSPMD) via email at [emailprotected]. , (copy furnish N/RAB with attached schedule of ocular inspection) for publication/posting as deemed accredited printer in the BIR website using the template (Annex G). Docket to be retained by the RDO for further processing; 4. Forward the Lists of Printers for Accreditation to the Chief, Collection Section/ACIR, LTS for the issuance of Certificate of No/With Tax Delinquency (Annex J); 5. Coordinate with the National/Regional Accreditation Board or N/RAB and/or other BIR concerned offices for scheduling with the taxpayer of the date and venue in case of on-site inspection involving branch offices under the jurisdiction of other RDOs; 6. Inform the applicant-printer the set schedule for on-site inspection; DHcEAa 7. For Qualified applications after post-evaluation: i. Receive from the Head of N/RAB duly signed Certificate of Accreditation (Annex C) for compliant applicants and release the same to the accredited printer. The N/RAB to issue permanent Accreditation Number following this format: RDO CODE-xx-YEAR-10-digit sequential number ( e.g., 029MP20130000000001); wherein xx stands for MP Manual Permanent and EP Electronic Permanent (to be generated upon systems rollout); ii. Send notice to accredited printer via email to get their Certificate of Accreditation; iii. Inform accredited printer through email facility of any notices/letters for service or mailing in accordance with Republic Act 8792 also known as the "Electronic Commerce Law"; iv. Submit to the TSPMD thru email facility the List of approved Accredited Printers with their Permanent Accreditation Number (Annex I). 8. For Disqualified applications after post-evaluation: i. Receive from the Head of N/RAB on any findings of the team conducting the ocular inspection thru a Letter of Warning (Annex D) and release the same to the printer for compliance within the period prescribed in the said letter; ii. Failure to comply within the prescribed period shall cause the revocation of its accreditation, the N/RAB shall prepare Revocation Notice (Annex E) for release to the respective printer; iii. Printer shall likewise be notified of the revocation via email; iv. Return all the documents submitted by the printer. 9. Issue appropriate Certificate (Accreditation or Revocation) prior to the expiration of validity of its provisional accreditation; cDHAES 10. Tag all identified accredited printers, as posted in the BIR website, as ACCREDITED PRINTER in ITS Special Code field; 11. Submit list of revoked accreditation of printer to TSPMD for deletion from list of accredited printers in website. A separate list of printers with revoked accreditations effective as of a given date shall likewise be posted. B. N/RAB 1. Receive the docket from TSS of RDO/Division under LTS; 2. Attend on-site inspection as scheduled and determine compliance by accomplishing the "On-site Inspection Checklist for Accreditation of Printers" (Annex "H"); 3. Raise all issues and concerns before, during and after on-site inspection if any, and coordinate with the taxpayer thru TSS of RDO/Division under LTS for resolutions with the corresponding evaluation of the same; 4. Submit the docket, duly signed report on the result of evaluation and the recommendation approval/disapproval of the application for accreditation; 5. If application for accreditation is disqualified, prepare Letter of Denial; 6. Receive from TSS the Certificate of Accreditation for signature; 7. Forward duly signed Certificate of Accreditation or Letter of Denial of Application for Accreditation of Printer, whichever is applicable, to the concerned TSS for release to the printer. C. Collection Section of RDO or Concerned Section/Division under LTS 1. Receive from TSS the Lists of Printers for Accreditation for the preparation and issuance of Certificate of No/With Tax Delinquency; 2. Transmit Certificate of No/With Tax Delinquency to the TSS. IcSHTA D. Taxpayer Assistance Service (TAS) through the Taxpayer Service Programs and Monitoring Division (TSPMD) 1. Receive Lists of deemed Accredited Printers from RDOs/offices under LTS for publication or posting in the BIR website; 2. Assign provisional Accreditation Number for deemed accredited printers following this format: PROVAN-6-digit sequential number ( e.g., PROVAN000001); 3. Post list of deemed accredited printers every Thursday with date of effectivity as of date of posting starting February 14, 2013 , and provide list to the Data Warehousing and Systems Operations Division (DWSOD); 4. Compare list from ISG and the list of Accredited Printers as posted in website for validation. Printers not duly accredited and have been tagged as ACCREDITED PRINTER by the RDO (TSS) shall be referred to the RDO (TSS) for appropriate action within five (5) days from receipt of notice from TSPMD. Failure of RDO (TSS) to make the corresponding update shall be subject to disciplinary action under the Revised Code of Conduct; 5. Update the List of Accredited Printers as posted in the BIR website on the following: Posting of the Permanent Accreditation Number as approved and issued by N/RAB and deletion of the Provisional Accreditation Number; Deletion of disqualified printers as recommended by the N/RAB. 6. Receive issues/concerns, if any, from RDOs or Divisions/Offices under LTS that shall require policy direction or recommendation, on existing revenue issuances and on the enhancement of the system; SAHITC 7. Consolidate reports and submit to the Office of the Assistant Commissioner, Taxpayer Assistance Service, issues/concerns received for evaluation and resolution. E. Information Systems Group through the Systems Development Division (SDD) 1. Generate list of registered printers in ITS per RDO as of December 31, 2012. 2. Submit list to TSPMD for distribution to respective RDOs to give notice on the deletion of tag as printer in ITS Special Code field. This is to ensure that only accredited printers will be issued system generated ATPs once identified. 3. The SDD shall delete all tags of printers as TP ENGAGED IN PRTG one (1) day before the publication in the BIR website of initial List of Accredited Printers. 4. The SDD shall update description of 'PRNTR' special code from 'TP ENGAGED IN PRTG' to 'ACCREDITED PRINTER' (to distinguish old from new printers who have undergone accreditation process). F. Data Warehousing and Systems Operations Division (DWSOD) 1. Generate list of printers with tag as ACCREDITED PRINTER every 1st week of the following month and submit to TSPMD for monitoring. SECTION 4. Procedures on the Revocation of Accreditation of Printers . 1. The Revenue Officer (RO), during the conduct of Taxpayer Compliance Verification Drive (TCVD), or audit investigation who discovers any violation of an accredited printer shall report the same thru the Revenue District Officer, to the N/RAB concerned; 2. Upon receipt of the report on the violation of the accredited printer, the concerned N/RAB shall prepare and approve the "Letter of Warning" (Annex "D"), and the same shall be transmitted to the concerned RDO; 3. The Letter of Warning shall be mailed (registered) with return card; CaSHAc 4. After two (2) weeks from receipt of the letter/notification, the RDO thru its RO shall re-visit the accredited printer for correction of discovered violation. If the violation still exists without valid reason, the RO thru the Revenue District Officer shall recommend for the revocation of printer's accreditation to the N/RAB concerned; 5. Upon receipt of the recommendations from the Revenue District Officer, the concerned N/RAB shall prepare and approve the "Revocation Notice" (Annex "E") for transmittal to the RDO concerned for immediate mailing (registered) with return card. SECTION 5. Effectivity Clause . This Order takes effect immediately. (SGD.) KIM S. JACINTO-HENARES Commissioner of Internal Revenue ANNEX A Sworn Statement REPUBLIC OF THE PHILIPPINES PROVINCE OF ____________________ CITY/MUNICIPALITY OF _______________ I _______________________ (Name of Authorized Representative), ___________ (Nationality) , of legal age designated as _________ (Position) of ________________ (Registered Business/Trade Name of Company/Corporation) , with registered address located at _____________ (registered/residence address) , do hereby certify the following: THAT, ____________________ (Name of Company/Owner/Corporation) with business address at ________________ (business address) is a duly registered entity under the laws of the Philippines; THAT the company is engaged in Printing Services and existing under __________________ (business/trade name) , with TIN ______________ and has been operating for no less than three (3) years in printing the principal and supplementary invoices/receipts; THAT the company owns ____________ (number of machines) number of machines for printing of the principal and supplementary invoices/receipts, please specify serial numbers, description of each printing machine ; THAT the company's printing machines are capable of generating security features/markings in printing of the principal and supplementary invoices/receipts; THAT the company shall only print customer's or client's principal and supplementary invoices/receipts with an Authority to Print secured from the BIR; SICaDA THAT the company shall not require a minimum number of booklets for printing for its customers/clients; THAT the aforementioned principal and supplementary invoices/receipts to be printed are serially numbered and conformed to the requirements of Sections 237, 238, and 113 (for VAT-registered taxpayer) of the National Internal Revenue Code of 1997, as amended and other prevailing rules and regulations; THAT the company will comply with the provisions of the bookkeeping regulations and reportorial requirements of the BIR; THAT the company, or any of its owners, is not connected with the BIR or is not related to any BIR official or employee within the fourth civil degree of consanguinity or affinity or the latter's relatives within the fourth civil degree of consanguinity or affinity. THAT in the event that the foregoing be discovered to be in violation of existing rules and regulations, I hereby undertake to face any legal sanctions and pay corresponding penalties thereof as provided for under the National Internal Revenue Code of 1997, as amended. I HEREBY DECLARE UNDER THE PENALTIES OF PERJURY THAT THE FOREGOING ATTESTATIONS ARE TRUE AND CORRECT. _____________________ Name and Signature of Affiant/Authorized Representative TIN: ______________ SUBSCRIBED and sworn to before me, in the City/Municipality of _________________, this day of ___________, 20___ by _____________ with Residence Certificate No. ________ issued at ____________ on, ________ 20___. Notary Public Doc. No. ________ Page No. ________ Book No. _______ Series of ________ ANNEX B Checklist of Requirements in the Accreditation of Printers ANNEX C Certificate of Accreditation ANNEX D KAGAWARAN NG PANANALAPI KAWANIHAN NG RENTAS INTERNAS REVENUE REGION NO. REVENUE DISTRICT NO. Letter of Warning _____________ (Date) ________________________ (Accredited Printer) ________________________ ________________________ (Address) Sir/Madam: This is to inform you that your company has violated the prevailing revenue issuances on the Accreditation of Printers and/or on other revenue issuances on taxpayer compliance, thereby submitting you to the revocation of your Certificate of Accreditation, to wit: TaCDcE Reasons: (Please mark the appropriate space) ( ) Discovery of any misrepresentation on the Sworn Statement submitted by the printer; (please specify misrepresentation made) ___________________________________________________________. ( ) Generation of stop filer cases and/or unsettled delinquent accounts against the printer for the last three (3) months of operation; ( ) Requiring a minimum number of booklets from their client/customer; ( ) Failure to submit reports as required by the Bureau; ( ) Filed petition by a taxpayer for the revocation of Certificate of Accreditation due to meritorious cases; ( ) Any other violation(s) of the accredited printer on the policies and procedures for accreditation pursuant to the prevailing revenue issuances on Accreditation of Printers; ( ) Others (specify): __________________________________________. As such this letter is being issued as a WARNING, you are advised to make the necessary changes/corrections to comply with the requirements for Accreditation of Printer as prescribed in Revenue Regulations (RR) No. 15-2012 . Failure to comply within two (2) weeks from receipt of this letter without valid reason shall cause the revocation of your accreditation as provided in Section 3.18 of RR 15-2012 on Accreditation of Printers. aDcHIC Very truly yours, Commissioner of Internal Revenue By: ______________________________ (Head, National/Regional Accreditation Board) ANNEX E KAGAWARAN NG PANANALAPI KAWANIHAN NG RENTAS INTERNAS REVENUE REGION NO. REVENUE DISTRICT NO. Revocation Notice _____________ (Date) ________________________ (Accredited Printer) ________________________ ________________________ (Address) Sir/Madam: This is to give notice on your failure to comply with the BIR's requirements for Accreditation of Printers as prescribed under Section 3 of Revenue Regulations (RR) No. 15-2012 giving ground to the revocation of your accreditation. A written warning dated ___________ mm/dd/yyyy duly received by _____________ on ____________ mm/dd/yyyy lists down the violations committed as follows: Reasons: (Please mark the appropriate space) ( ) Discovery of any misrepresentation on the Sworn Statement submitted by the printer; (please specify misrepresentation made) ___________________________________________________________. ( ) Generation of stop filer cases and/or unsettled delinquent accounts against the printer for the last three (3) months of operation; ( ) Requiring a minimum number of booklets from their client/customer; ( ) Failure to submit reports as required by the Bureau; ( ) Filed petition by a taxpayer for the revocation of Certificate of Accreditation due to meritorious cases; TEDAHI ( ) Any other violation(s) of the accredited printer on the policies and procedures for accreditation pursuant to the prevailing revenue issuances on Accreditation of Printers; ( ) Others (specify): __________________________________________. Section 3.19 of RR 15-2012 on Accreditation of Printers states that "Failure of the accredited printer to comply within two (2) weeks from the receipt of the said written warning, the Revocation/Dis-accreditation Notice shall be issued and the Certificate of Accreditation shall be automatically revoked". Having failed to comply or make the necessary changes within two (2) weeks from receipt of the Letter of Warning as stated above, you are hereby informed that your accreditation has been REVOKED and the issued Certificate of Accreditation is now cancelled. Very truly yours, Commissioner of Internal Revenue By: _____________________________ (Head, National/Regional Accreditation Board) ANNEX F Letter of Denial On the Application for Accreditation of Printer ____________ (Date) ________________________ (Name of Printer) ________________________ ________________________ (Address) Sir/Madam: We regret to inform you that your Application for Accreditation has been "DENIED" per recommendation of the Accreditation Board due to the following reason(s)/deficiency(ies): ETDaIC 1. 2. 3. You are hereby advised to comply based on the reasons aforementioned, and submit a new application together with the required documentary requirements to the Revenue District Office (RDO) or Office/Division under Large Taxpayer Service (LTS), having jurisdiction over the printer's head office/branch. Very truly yours, COMMISSIONER OF INTERNAL REVENUE By: __________________________________ Head, (National/Regional) Accreditation Board (Chief of Office/Division/RDO) ANNEX G List of Authorized Printers of Principal & Supplementary Receipts/Invoices As of ______________________ Revenue District Office No. ______ TIN Printer's Name Trade/Business Name Registered Address ____ ___ ___ ___ ___ __ ________ ___ ______ _________________________ _________________ ______ ___ ___ ___ ___ _______ ___ _______ _________________________ _________________ ______ ___ ___ ___ ___ _______ ___ _______ _________________________ _________________ _____ ___ ___ ___ ____ _______ ___ _______ _________________________ _________________ ______ ___ ___ ___ ___ _______ ___ _______ _________________________ _________________ ______ ___ ___ ___ ___ _______ ___ _______ _________________________ _________________ Prepared by: Certified Correct: ___________________ _______________ Registration Officer TSS Chief Approved: ________________________________________ Revenue District Officer/Chief under LTS offices ANNEX H On-Site Inspection Checklist for Accreditation of Printers Name of Applicant Printer _______________________________ Business Name/Trade Name ______________________________________ Business Address ____________________________________________ TIN/Branch Code ______________________ E-mail Address ________________ Telephone Number _______________ Description/Specification Yes No Remarks A. Functional Aspects 1 Is the company engaged in printing _____ _____ _________ services/activities for no less than three (3) years? (For single proprietor (SP) engaged in printing services for no less than 3 years but later changed to a corporation, the prescribed period of 3 years shall be carried over to the corporation, provided that the SP owns at least 75% of the total voting power of all classes of stocks entitled to vote) 2 Is the SP or any of the owners of the _____ _____ _________ corporation (whichever is applicable), connected with the BIR or related to any BIR official or employee within the fourth civil degree of consanguinity or affinity or the latter's relatives within the fourth civil degree of consanguinity or affinity? 3 Does the company own/lease* specific _____ _____ _________ number of machines as indicated in the Sworn Statement for printing of Sales Invoice/Official Receipts/Commercial Invoices (SI/OR/CI)? Specify exact number of owned/leased machines. (* require a copy of Contract of Lease) 4 Does the company require minimum _____ _____ _________ number of booklets for printing for its client or customer? 5 Are the data printed on the Official _____ _____ _________ Receipts/Sales Invoice/Commercial Invoices not erasable for at least three (3) years from its issuance? 6 Is the printing machine capable of _____ _____ _________ generating serial/sequential number for each Official Receipts/Sales Invoice/Commercial Invoices? 7 Is the printing machine capable of printing: _____ _____ _________ a. only one security marking/feature for _____ _____ _________ all clients; or b. Separate/distinct security marking/ _____ _____ _________ feature for each client? (Provide a brief description of specific security markings/features in the remarks column) 8 Does the printer provide/disclose _____ _____ _________ monitoring controls & verification techniques of the printed security markings/features to the BIR? 9 Are the following data required to _____ _____ _________ be reflected on the OR/SI/CI invoice, indicated in the sample print of such OR/SI/CI? Registered/Business Name; _____ _____ _________ Business name/style (if any); _____ _____ _________ A statement that the taxpayer is _____ _____ _________ VAT or Non VAT registered followed by the TIN; Registered/Business Address _____ _____ _________ where the OR/SI/CI shall be used; Date of Transaction; _____ _____ _________ A space provided for the Name, _____ _____ _________ Address and TIN of the buyer; OSCA ID No./PWD ID No.; _____ _____ _________ Senior Citizen Discount/PWD Discount; _____ _____ _________ A space for Signature of the Senior _____ _____ _________ Citizen/PWD; Description of the items/goods or _____ _____ _________ nature of service; Quantity; _____ _____ _________ Unit Cost; _____ _____ _________ Total Cost; _____ _____ _________ If the taxpayer is engaged in mixed _____ _____ _________ transactions, the amounts involved shall be broken down to: VATable Sales, VAT amount, Zero Rated Sales, and/or VAT-Exempt Sales; For Non-VAT ORs as well as Non-VAT _____ _____ _________ SIs, and other CIs (VAT or Non-VAT) and other similar documents that form part of the accounting records of the taxpayer and/or issued to their customers, in addition the above aforementioned, the phrase "THIS DOCUMENT IS NOT VALID FOR CLAIM OF INPUT TAX" in bold letters, shall be conspicuously printed at the face of the Non-VAT ORs/Non VAT SIs/CIs Name, address and TIN of the Accredited _____ _____ _________ Printer; Accreditation number and the date of _____ _____ _________ accreditation of the accredited printer; ATP number, OCN, date issued and _____ _____ _________ validity period; BIR Permit Number (if loose leaf OR/ _____ _____ _________ SI/CI); Approved inclusive serial numbers of _____ _____ _________ OR/SI/CI; and The phrase, "THIS RECEIPT/INVOICE _____ _____ _________ SHALL BE VALID FOR FIVE (5) YEARS FROM THE DATE OF THE ATP." B. Other Aspects 1 Does the applicant printer have _____ _____ _________ the facility to use the online ATP system for its client/customer applications? RECOMMENDATION: (please check) ____ Qualified ____ Disqualified Reason/s: ________________________________ ________________________________ NATIONAL/REGIONAL ACCREDITATION BOARD: __________________________ _________________________ __________________________ _________________________ Member Member (Representative TSS of (Representative Assessment Section- RDO/Division under LTS) RDO/Division under LTS) ____________________________ Asst. Head, N/RAB (Asst. Div. Chief/ARDO) _____________________________ Head, Accreditation Board (Chief, RDO/Division under LTS) ANNEX I Lists of Accredited Printers As of __________________ Revenue District Office No. ____ No. email Tel. TIN Name of Printer/ Registered Permanent Accreditation address nos. Trade or Address Accreditation Date Business Name Number _______ _________ _______ ___________ _______________ __________ __________ ________ _______ _________ _______ ___________ _______________ __________ __________ ________ _______ _________ _______ ___________ _______________ __________ __________ ________ _______ _________ _______ ___________ _______________ __________ __________ ________ _______ _________ _______ ___________ _______________ __________ __________ ________ _______ _________ _______ ___________ _______________ __________ __________ ________ _______ _________ _______ ___________ _______________ __________ __________ ________ Prepared by: Certified Correct: ___________________________ _______________________________ Registration Officer TSS Chief Approved: _______________________________________________ Revenue District Officer/Chief under LTS offices ANNEX J REPUBLIC OF THE PHILIPPINES DEPARTMENT OF FINANCE BUREAU OF INTERNAL REVENUE Revenue District Office No./ Offices under Large Taxpayer Service Certificate of No/With Tax Delinquency TO WHOM IT MAY CONCERN: This is to certify based on the available records of this Office, that _________________________ <Indicate Printer's Registered Business Name/Trade Name> ________________________ with TIN (<Indicate TIN>) _____________, and registered address located at _________________________________________ <Address>, disclosed the following information: cADEIa [ ] No Tax Delinquency. [ ] With Tax Delinquency. [ ] Active and Pending. [ ] Transfer-out case to ________________ Date: ___________ (Require certification from the RDO/Office concerned where the docket transferred-out) However, any tax liabilities outside the jurisdiction of this Office are not covered by this clearance. This certification is being issued relative to the Application for Accreditation of Printer's pursuant to Revenue Regulations No. 15-2012. Done this ____ day of _____________, 20___. FOR THE COMMISSIONER OF INTERNAL REVENUE By: _________________________________ Assistant Commissioner, Large Taxpayer Service/Chief, Collection Section Certification Fee: Php100.00 O.R./Payment + No.: Date Paid: