BIR extends validity of old receipts

The Bureau of Internal Revenue extended the validity of old receipts to August 30, from the original deadline of June 30, amid rising complaints on the regulations on new receipts.

BIR Commissioner Kim Henares signed Revenue Memorandum Circular (RMC) No. 44-2013, which extends the validity of all unused or unissued principal and supplementary receipts or invoices printed prior to January 18, 2013, to August 30 of this year.

After the said date, all businesses must use the new receipts printed by the revenue-generating agency’s accredited printers.

Henares said that the move to extend the deadline for the use of old receipts is in response to complaints that the time period allowed to avail of the new receipts has been too short.

“In the first place, the deadline should not even be adjusted because they (businesses) are aware of the deadline,” Henares said in a phone interview.

The BIR commissioner said that there has been a lot of noise regarding its plan to require the use of new receipts since some businesses have only decided to go to accredited printers close to the deadline.

“But since there have been a lot of requests, and it will be physically impossible for accredited printers to accommodate everyone prior to the original June 30 deadline, we decided to extend it,” Henares said.

However, the RMC reiterated that the deadline for filing an application for the printing of new receipts shall be maintained as of April 30, 2013.

“All applications received after said date shall be considered late application and the penalties for late filing shall be imposed,” the RMC said.

The BIR said that taxpayers who apply for authority to print receipts beyond April 30, 2013 shall pay a penalty of P1,000.

Those who fail to use the new sets of receipts starting August 31, 2013 will pay the maximum penalty of P50,000.

“After August 30, 2013, all principal and supplementary receipts/invoices printed prior to January 18, 2013 shall no longer be valid. Issuance of said receipts/invoices shall be deemed to be an issuance of an invalid receipt or deemed as if no receipts were issued, and a violation of Section 264 of the National Internal Revenue Code,” the RMC said.

“As of now, this is the best possible method to make sure that all receipts are legit,” Henares said.

“We are only required to publish the regulations on the issuance of new receipts through newspapers, which we already did, and we posted it also on our website,” the BIR chief added, in response to those who said that the BIR did not immediately inform the public on its move to phase out old receipts.

The BIR earlier said that Revenue Regulation No. 18-2012 which requires the issuance and use of new sets of receipts was published on January 3, 2013.

RR No. 18-2012 provides among others that taxpayers must apply for the printing of their new receipts at least 60 days (or April 30) before the original expiry date of June 30, 2013 for old receipts.

It was followed by Revenue Memorandum Order No. 12-2013 on May 2, 2013 to provide for penalties since Henares said that very few taxpayers were complying with the said regulations.

“We believe that six months is enough preparation for everyone to comply with such requirement,” Henares said.

The BIR said that the move to require the use of new receipts hopes to address several issues.

The agency said that it discovered of some businesses registered with the BIR, but are not really engaged in business, except to sell invoices.

“These businesses sell their invoices to entities who are either engaged in smuggling and/or purchasing of goods without receipts. When BIR looked for these companies, mostly Small and Medium Enterprises, they cannot be found,” the agency said.

The BIR also said that a lot of invoices that were printed in the ‘70s are still being used.

Finally, the issuances are aimed at reforming the process of accrediting printers, to address complaints against some BIR personnel engaged in the printing business who make it difficult for taxpayers to register or secure authority to print unless they get to print the receipts of said taxpayers.


Malaya Business Insight, 13 June 2013