BIR Update: Official Receipt and Invoice Validity Period Removed
“This Invoice/Receipt shall be valid for five (5) years from the date of the permit to use” for the past few years we’ve seen this phrase on all receipts or invoices we gather from availing any services or products. This was implemented last 2012 under RR No. 18-2012 that incurred not just cost for most businesses but also confusion once the receipt or invoice validity period expires. The receipt and invoice validity period printing were extended to system-generated receipts/invoices from Cash Register Machines (CRM), Point-of-Sale (POS), and other business software.
As the bureau continually revisit and revise its policies and to comply with “The Ease of Doing Business and Efficient Government Service Delivery Act of 2018”, the Official Receipt and Invoice Validity Period is now removed. And such regulations shall cover taxpayers who shall apply for the following:
- ATP Official Receipts, Sales Invoices, and other commercial invoices
- Registration of Computerized Accounting System (CAS) or Component of CAS based on RMC No. 10-2020, RMC No. 5-2021, and RMC No. 9-2021; and
- PTU CRMs and POS Machines based on RR No. 11-2004 and RMO No. 10-2005.
With the new policy, the 5-year invoice validity period of PTU and system-generated receipts/invoices is now removed making all PTUs to be issued be valid unless revoked by the BIR on violating any ground stated by the bureau.
“This Invoice/Receipt shall be valid for five (5) years from the date of the permit to use” or “This Invoice/Receipt shall be valid for five (5) years from the date of the ATP” shall be omitted on system-generated receipts/invoices, and omitted and disregarded on unused manual receipts/invoices.
What to do with existing invoices and receipts?
- Manual Receipts/Invoices with ATP
In accordance with this regulation, the Invoice Validity Period (date and phrase) printed on unused manual principal and supplementary receipts/invoices shall be disregarded until it has been fully consumed. While for future printing, the Invoice Validity Period shall be reflected on such documents.
- CAS, CAS with PTU or AC Generated Receipts/Invoices
The same Receipt and Invoice Validity Period shall also be disregarded however the said accounting software in which the receipt was generated must be redesign that such phrase will not be reflected.
- CRMs and POS Machine with PTU Generated Receipts/Invoices
Similar to the abovementioned revision, the same Receipt and Invoice Validity Period shall be removed and reconfigured to remove the phrase on future printing.
Effectivity: Fifteen (15) Days after publication in the Official Gazette or Newspaper
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FAQS and Clarifications about rr No. 6-2022
RMC No. 123-2022
RMC No. 123-2022 answers clarifications and Frequently asked questions (FAQS) about RR No. 6-2022 also known as Removal of Five (5)-year Validity Period on Receipts/Invoices:
- What are considered expired receipts/invoices?
Receipts/invoices are considered expired once the “Valid Until” date for ATP, PTU and such are indicated to be on or before July 15, 2022.
- Why are receipts/invoices with validity date on or before July 15, 2022 considered expired?
It is considered expired since RR 6-2022 was published on July 1, 2022 giving a 15-day window to make the regulation as public as possible. The then effectivity date shall be starting July 16, 2022.
- Who are covered by RR 6-2022?
All taxpayers are currently and will be issuing principal and/or supplementary receipts/invoices.
- How to know if remaining receipts/invoices can still be issued or not?
Please be guided by the table given by the BIR with regard to receipts/invoices Date of ATP:
|Date Issued||Valid Until||Can be issued or not?|
|On or before July 16, 2017||On or before July 15, 2022||NO|
|July 17, 2017 onwards||July 16, 2022 onwards||YES|
- What to do with remaining expired receipts/invoices that can no longer be issued?
These receipts/invoices have to be turned over to the RDO where the Head Office or Branch Office is located on or before the 10th day after validity period indicated on the receipts/invoices. The RDO will then take care of the destruction of such documents.
- What will happen if a taxpayer issues an expired receipt/invoice?
Penalties for such action shall be ₱20,000 on first offense and ₱50,000 on second offense.
- How does RR 6-2022 affect CAS and/or its Components and PTU CRM/POS in issuing receipts and comply with the regulation?
Simple, system generated receipts/invoices shall no longer reflect the phrase “This Invoice/Receipt shall be valid for five (5) years from the date of the acknowledgement certificate”
Such software shall be redesigned to remove the phrases: “This Invoice/Receipt shall be valid for five (5) years from the date of the acknowledgement certificate”, “This Invoice/Receipt shall be valid for five (5) years from the date of the permit to use” and the Valid Until Date.
On removing such phrases on CAS Registered Software, it is no longer required to have a letter addressed to the respective RDO where an office is located to make such modifications since it is considered minor. But taxpayers can still inform the RDO where they are registered about such changes.
- When is the deadline for the removal of the phrase and validity period of receipts/invoices?
As per the bureau, CAS, POS, CRM and other machine generating receipts and invoices shall have phrase and validity period removed by December 31, 2022 giving ample time to reconfigure the system in order to be compliant with the regulation.