Doing business in the Philippines involves navigating certain requirements set by the Bureau of Internal Revenue (BIR). One crucial aspect is the use of a Point of Sale (POS) system, which necessitates partnering with a POS vendor or supplier. These vendors play a vital role in setting up and customizing your POS system to meet your specific business needs. They can create tailored order punching systems or provide specialized software designed for efficient order taking. POS machines significantly streamline the cashier's workflow, simplifying order processing and even facilitating upselling to customers, ultimately contributing to a smoother and more profitable business operation.
While POS suppliers/vendors are responsible for the initial registration of your POS machines with the BIR, the responsibility shifts to the taxpayer when business operations cease or the need for a particular POS machine ends. In such cases, the taxpayer is solely responsible for the cancellation, decommissioning, or retirement of their POS machines. This process involves coordinating directly with the local Revenue District Office (RDO) to schedule the cancellation. It's essential to communicate the scheduled date to your POS supplier/vendor, as their support and assistance are crucial throughout the cancellation process. They can provide technical guidance and ensure the process goes smoothly.
Be prepared for a potential wait time. According to sources, scheduling a POS machine cancellation with your local RDO can take upwards of 30 days. This extended timeframe is often due to the high volume of establishments undergoing similar procedures. The RDO handles numerous requests, and processing them efficiently takes time. Therefore, it's advisable to initiate the cancellation process well in advance of your planned business closure or POS machine retirement to avoid any unnecessary delays.
Once the POS machine(s) are successfully cancelled in the BIR's Electronic Accreditation and Registration (EACCREG) portal, the taxpayer will receive an official cancellation letter. This letter serves as proof of the cancellation and should be kept for your records. This documentation is essential for compliance and may be required for future BIR transactions. Having a copy readily available can prevent complications and ensure a smoother interaction with the BIR.
Here's a sample of the cancellation letter that will be issued to the taxpayer:
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