Sample of Cancellation Letter Issued by BIR RDO

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:  

If you like my blog and it's content, please do share it with your friends. Thank you!

Read More

Reference for List of requirements for cancellation of POS permit to use/CRM

In processing of POS cancellation or termination of POS machine, local RDO has a list of requirements that you needed to complete before they will process your request. Please prepare the following documents:

WARNING: This is just a reference but its really depends on the needed requirements of each local RDO. I recommend to visit them and inquire. 

1.      BIR Form 1905 ( 2PCS)  

2.      Duly Notarized Sworn Statement 

3.      Letter request for cancellation with specific date for ocular inspection of Revenue Officer.

4.       Photocopy of BIR Form 2303/ COR

5.       Cover letter 

6.       Z-Reading (last day of transaction of POS machine was used)

7.       Reprint Copy of Last Official Receipt (last OR issued)

8.        Zero reading of old POS permits

9.       Original copy of Permit to Use Sales Machine (BIR POS permit)

10.     Original Decal Sticker (blue BIR Ask for Receipt)

11.     BIR Sales Report (last month of POS machine was used)

12.     Last 3 years of the following: (saved to CD or Flash drive)

                (A) Z-Reading (1st and last day of the month)

                (B) BIR Sales Report (monthly)

13.      Electronic Sales Journal ( saved to CD or Flash drive ) for POS user

13.1    Last Manual Sales Book for CRM user

14.      Photocopy of ID with signature ( For #16) 

15.      Photocopy of Representative ( maybe 2 valid ID) with signature

16.      For Taxpayer who will process the cancellation with representative

            For Individual - Special Power of Attorney

            For Non-Individual - Board Resolution/Secretary Certification

If you like my blog and it's content, please do share it with your friends. Thank you!

Read More

Inside the EACCREG Portal ( POS Provider )

Let's all explore the portal of BIR EACCREG under the POS provider account. Yes! You read it correct under POS provider. We have 2 kinds:  POS Provider and Taxpayer.

For the mean time, I will let you see the content of BIR EACCREG portal under POS provider so you can compare the content of Taxpayer (on my next blog).

Upon logging in,  you will noticed some tabs below the logo of BIR (Bureau of Internal Revenue).
Click Registration for Permit to Use > List of Registrations for Permit to Use > Encode Application.

This is the usual part where your POS provider file your POS machine(s) for you to have POS permit and on the next page you will see the complete POS application field by field - Application for Registration of Sales Machines.

We have 3 types of permit under EACCREG namely:
(a) POS provider - Final Permit
(b) Client/Taxpayer -  Provisional Permit
(c) Client/Taxpayer -  Special Purpose Machine Permit

 Once all the POS machine(s) has been added to the POS application. We need to include the details of Server Consolidator also or else we will encounter such an error [ see screenshot below ]

Once the POS application has been filed.
You will receive instruction on the next page [ see screenshot below ]
Your POS provider will take note of the generated transaction number and be given to their client/taxpayer for their reference and follow ups.

Your POS provider also download the PDF for both references [ see screenshot below ]

REMINDER: Be sure to provide the correct information to your POS provider like serial number, model and brand. To avoid any inconveniences on both end POS provider and taxpayer.

If ever something went wrong and only realize after POS application. POS provider has no control or power to recall a filed POS application. Client or taxpayer will visit their local RDO to inquire any possible requirements to be submitted in order to DENY your existing POS application.

Once denied, that's the only time your POS provider can re-file POS application.



If you like my blog and it's content, please do share it with your friends. Thank you!

Read More

How important is a change address in BIR?

We all know that when you moved to a new location their are many things that we need to consider especially if you are in the business area. Take note that BIR is involve in every action we do.

Here are some pointers you may take a look at:

1. You need to advise BIR ahead of time before anything else through formal letter.

2. Consult your legal office or RDO if there will be any change of RDO code due to jurisdiction(s).

If YES, below are the things you need to accomplish before doing re-application
      a. Update your BIR Form 2303 or COR and monitor the changes in your EACCREG account.
      b. Process POS termination/cancellation/termination/decommission of your POS (that will under
          due to process and scheduling)    
      c. Send scanned copy of your cancelletion letter to your POS provided issued by your RDO for
          re-validation.
      d. Seek help with your POS provider to check if your new COR info is already align with
          EACCREG details
      f. So, pOS provider can start processing your new POS application under to your new RDO. 
      e. Once filed and approved, print and laminate your new POS permit and placed it besides your   
          POS machine.
      g. Coordinate to your POS provider to re-encode new BIR details to your Official Receipt (OR) info.

TIP: Always have a spare printed POS permit just case of damage or loss

If NO, your current POS permit is/are safe to use just request to RDO to update current POS permit to the new address. Coordinate to your POS provider to re-encode new address your Official Receipt (OR) info.


3. To avoid any penalty during tax mapping due to wrong info.







If you like my blog and it's content, please do share it with your friends. Thank you!

Read More

Adding Branches in eAccReg: A Step-by-Step Guide

Passwords are essential for accessing your Electronic Accreditation and Registration (eAccReg) account, which you need to print your Permit to Use (PTU) for your Point of Sale (POS) machines.  However, managing passwords can become incredibly complex, especially if your business has multiple branches.  Imagine having to create and remember individual EACCREG accounts for each branch, starting from branch code 000 up to 100, and potentially even more! That's a lot of accounts and an overwhelming number of passwords to keep track of.

Compounding this issue is the BIR's requirement to change your EACCREG password every three months. While this security measure is important, remembering a unique password for each branch, from 000 to 100 (or beyond), in addition to your personal passwords, can be incredibly stressful and tedious.  It's simply not practical or realistic to memorize so many different combinations

Fortunately, there's good news! eAccReg is designed to handle multiple branches under a single account.  You can add branch codes from 000 all the way up to 99999 using just one eAccReg account. This single account is tied to your 12-digit Tax Identification Number (TIN), formatted as 123-456-789-00000.  This significantly simplifies password management and reduces the administrative burden.

Here's a step-by-step guide on how to add a branch to your existing eAccReg account:

STEP 1: Start with Branch 000: You must already have an EACCREG account established for branch code 000. This serves as your primary account.

STEP 2: Access Account Settings: Log in to your EACCREG account for branch 000. Navigate to the account settings section.  You'll likely find the "Add Branch" option in the lower portion of this page. 

STEP 3: Select "Add Branch": Click on the "Add Branch" button to initiate the process of adding a new branch.

 STEP 4: Fill in Branch Information:  You'll be prompted to fill in the required information for the new branch. This information must match exactly what is on the branch's Certificate of Registration (COR/BIR Form 2303), including any spaces between letters or characters.  This step is case-sensitive, so pay close attention to detail.  If you encounter any errors during this step, consult your Revenue District Office (RDO) for assistance.  Double-check everything!

STEP 5: Submit the Information: Click the "Submit" button after carefully reviewing the entered information.

STEP 6: Confirm the Action: A confirmation prompt will appear. Click "YES" to proceed with adding the branch.

STEP 7: Note the Transaction Number: After submitting, take note of the transaction number. This will be useful for tracking the status of your branch addition request.

STEP 8: Click "Done": Click the "Done" button to complete the initial online portion of the process.

STEP 9: The End

CRUCIAL NEXT STEP RDO Coordination:  Adding a branch online is just the first step. You must coordinate with your RDO to complete the process.  They will inform you about the specific requirements and documents you need to submit for their approval.  Failure to submit these requirements within the specified timeframe may result in your application being forfeited.  

Contact your RDO as soon as possible after submitting the online request to ensure you have all the necessary information and can provide the required documents promptly. 

Selection of Branch Code

Outcome when you select Branch Code 112

LASTLY, you will receive an email once your enrollment for adding a branch has been approved.



If you like my blog and it's content, please do share it with your friends. Thank you!

Read More