Tax Notes: Clarifications on simplified guidelines on the use of CAS, CBA, its components

·2 min read

As part of its series of issuances on the Computerized Accounting System (CAS), the Bureau of Internal Revenue (BIR) has recently issued Revenue Memorandum Order (RMO) 9-2021 which prescribes the simplified guidelines and procedures on the use of CAS, Computerized Books of Accounts (CBA) and/or its Components, including the Electronic Storage System (ESS), Middleware and Other Similar Systems. The RMO, issued on Feb. 19, 2021, supplements the provisions of Revenue Memorandum Circular 5-2021 in streamlining the documentary requirements and in simplifying the process of registration of these systems.

To register, taxpayers need to submit the requirements under the Checklist of Documentary Requirements (Annex A) and Sworn Statement (Annex C), together with the Summary of System Description, Commercial Invoices/ Receipts/ Document Description, Forms/ Records and Reports Specification (Annex C-1). The system must comply with the Standard Functional and Technical Requirements under Annex B. An Acknowledgement Certificate shall then be issued within three working days from receipt of the complete documentary requirements. While no system demonstration and pre-evaluation shall be conducted, the BIR may clarify certain features and request for amendments in the Sworn Statement as it deems applicable.

It is important to note that affiliated companies shall still register at their respective revenue district offices regardless of sharing servers and shall use the exact system previously registered and utilized by the parent company or related firms.

Further, major system enhancements such as changes in functionalities of the systems, addition or removal of modules within the system and improvements to the financial aspects of the system are required to update registration. For minor system enhancements, only a written notification to the corresponding revenue district office shall be submitted.

On the other hand, systems with manual principal and/or supplementary receipts and invoices are still required to apply for Authority to Print (ATP). Systems that will use system-generated receipts but with manual BIR-approved receipts/invoices with ATP shall be declared in the Sworn Statement and its Annexes. Nevertheless, system-generated principal and/or supplementary receipts/invoices must comply with the mandatory information required under Section 5 of Revenue Regulations (RR) 10-2015, as amended by RR 16-2018.

Please see the full memorandum for more details.

Source:

P&A Grant Thornton

Certified Public Accountants