Handling Tax Mapping Operations Effectively:
What is TCVD? TCVD stands for Tax Compliance Verification Drive. This is a program of the BIR where a certain pre-determined area will be the subject of tax mapping operations. During this period, the Revenue Officers will verify the following:
1.Display the Original BIR Certificate of Registration in such area conspicuous to the public.
2.Display the BIR Ask for Receipts Notice/signage
3.Post/exhibit the duly validated Registration fee return and proof of payment (Form 0605).
4.Issue registered invoices/receipts for sale of goods or services. The invoices/receipts should be in compliance with existing regulations, i.e. with validity period
5.Register and maintain books of accounts in the business premises at all times.
6.Update daily entries if possible.
My advise is DON'T PANIC (especially if the above are in order). You may not realize it, but it helps when you start on the right foot. There's not much to lose if you ALWAYS SMILE. If there is/are deficiency/ies, ask them politely if its possible for you to comply later without incurring any penalties. DO NOT ANTAGONIZE.
Notes:
The Revenue Officer should be in uniform and properly identified. If the Revenue Officer feels the need to apprehend certain records e.g. unregistered official receipts or invoices or any supplementary receipts, he should provide you an APPREHENSION SLIP indicating therein the items apprehended (with particularity) and duly signed by him. Make sure to get the office no. of the Revenue District Office and inquire first on the availability of the apprehending Revenue Officer so as not to waste time and money when you visit the RDO (Revenue Officers are field officers and are not normally required to stay in the office).
REVENUE REGULATIONS NO. 10-2008, AS AMENDED BY REVENUE REGULATIONS NO. 7-2012
SECTION 15. PENALTY PROVISION. – The following violations related to primary registration shall be penalized as follows:
1. Failure to register (those who are found unregistered during TCVD – Subject to the penalties under prevailing revenue issuances); Note: you can check Revenue Memorandum Order No. 19-2007 for the list of the penalties.
2. Late Registration (those who are voluntary registering, but beyond the prescribed period as indicated in these Regulations) – Compromise penalty of P1,000.00, in addition to the unpaid ARF and penalties due thereon for every year that the business is in operation. This provision shall not apply to application of TIN for employees;
3. Late payment of Annual Registration Fee – Subject to 25% surcharge and 20% interest per annum and P200.00 penalty;
4. Failure to register a branch or facility – Subject to penalty of P1,000.00 per unregistered branch or facility (Section 258 of the NIRC, as amended);
5. Acquisition of Multiple TINs – Aside from the criminal liability that may be imposed, P1,000.00 for every TIN acquired in excess of one;
6. Failure to and/or erroneous supply of information – P1,000.00 for every error/omission, but not to exceed P25,000.00 (Section 255 of the NIRC, as amended); and
7. Any violation of the provisions of these Regulations shall be subject to penalties provided in Sections 254 and 275, and other pertinent provisions of the Code, as amended.
Additional requirements if you employ Cash Register Machines (CRM) or Point-of-Sale (POS) Machines:
REVENUE REGULATIONS NO. 4-2013
The Permit to Use (PTU) must be kept by the buyer/user in the place of business, head office or branch, where
the machine is located and authorized to be used, and must be readily available for
verification by the Revenue Officers during Tax Compliance Verification Drive
(TCVD) activities and/or during audit/ investigation.
The MIN Sticker shall be a security void sticker which reveals a warning
message once opened, removed, resealed or tampered. The MIN Sticker must be
securely attached at the back of the machine to which it refers and must be
conspicuously visible to the public. The MIN Sticker shall contain the following
information, to facilitate verification:
a. Machine Identification Number;
b. Name and TIN of the buyer/user (12 digits) and Branch Code;
c. Permit to Use Number ;
d. Machine Serial Number;
e. Barcode.
SECTION 4. Penalty Clause. - In line with RMO Nos.9-2006 and 19-2007 in relation to Section 264 (a) of the NIRC, as amended, failure of the taxpayer to register POS/CRM and/or business/sale machine generating receipts/invoices shall be subject to a penalty of P25,000 for the first offense, and P50,000 for the second offense. If warranted, a criminal case may also be filed against the offender, where the criminal penalty imposed is a fine of not less than P1,000 but not more than P50,000 and imprisonment of not less than two (2) years but not more than four (4) years.
For purposes of these Regulations, the mere failure to post or attach the MIN Sticker to the POS/CRM and/or business/sale machine generating receipts/invoices shall be subject to a penalty fee of P1,000 per machine or institution of a criminal case against the offender where the imposable penalty shall be a fine of not more than P1,000 or imprisonment of not more than six
(6) months, or both pursuant to Section 275 of the NIRC, as amended, as implemented by RMO No. 19-2007.
If I you have the time, I suggest you read Revenue Memorandum Order No. 31-2003 which prescribes the Guidelines and Procedures for the Implementation of the Modified Tax Compliance Verification Drive (MTCVD) and Revenue Memorandum Order No. 45-2004 which prescribesing the Guidelines and Procedures on Unregistered Establishments Apprehended During Tax Compliance Verification Drive (TCVD).
What is TCVD? TCVD stands for Tax Compliance Verification Drive. This is a program of the BIR where a certain pre-determined area will be the subject of tax mapping operations. During this period, the Revenue Officers will verify the following:
1.Display the Original BIR Certificate of Registration in such area conspicuous to the public.
2.Display the BIR Ask for Receipts Notice/signage
3.Post/exhibit the duly validated Registration fee return and proof of payment (Form 0605).
4.Issue registered invoices/receipts for sale of goods or services. The invoices/receipts should be in compliance with existing regulations, i.e. with validity period
5.Register and maintain books of accounts in the business premises at all times.
6.Update daily entries if possible.
My advise is DON'T PANIC (especially if the above are in order). You may not realize it, but it helps when you start on the right foot. There's not much to lose if you ALWAYS SMILE. If there is/are deficiency/ies, ask them politely if its possible for you to comply later without incurring any penalties. DO NOT ANTAGONIZE.
Notes:
The Revenue Officer should be in uniform and properly identified. If the Revenue Officer feels the need to apprehend certain records e.g. unregistered official receipts or invoices or any supplementary receipts, he should provide you an APPREHENSION SLIP indicating therein the items apprehended (with particularity) and duly signed by him. Make sure to get the office no. of the Revenue District Office and inquire first on the availability of the apprehending Revenue Officer so as not to waste time and money when you visit the RDO (Revenue Officers are field officers and are not normally required to stay in the office).
REVENUE REGULATIONS NO. 10-2008, AS AMENDED BY REVENUE REGULATIONS NO. 7-2012
SECTION 15. PENALTY PROVISION. – The following violations related to primary registration shall be penalized as follows:
1. Failure to register (those who are found unregistered during TCVD – Subject to the penalties under prevailing revenue issuances); Note: you can check Revenue Memorandum Order No. 19-2007 for the list of the penalties.
2. Late Registration (those who are voluntary registering, but beyond the prescribed period as indicated in these Regulations) – Compromise penalty of P1,000.00, in addition to the unpaid ARF and penalties due thereon for every year that the business is in operation. This provision shall not apply to application of TIN for employees;
3. Late payment of Annual Registration Fee – Subject to 25% surcharge and 20% interest per annum and P200.00 penalty;
4. Failure to register a branch or facility – Subject to penalty of P1,000.00 per unregistered branch or facility (Section 258 of the NIRC, as amended);
5. Acquisition of Multiple TINs – Aside from the criminal liability that may be imposed, P1,000.00 for every TIN acquired in excess of one;
6. Failure to and/or erroneous supply of information – P1,000.00 for every error/omission, but not to exceed P25,000.00 (Section 255 of the NIRC, as amended); and
7. Any violation of the provisions of these Regulations shall be subject to penalties provided in Sections 254 and 275, and other pertinent provisions of the Code, as amended.
Additional requirements if you employ Cash Register Machines (CRM) or Point-of-Sale (POS) Machines:
REVENUE REGULATIONS NO. 4-2013
The Permit to Use (PTU) must be kept by the buyer/user in the place of business, head office or branch, where
the machine is located and authorized to be used, and must be readily available for
verification by the Revenue Officers during Tax Compliance Verification Drive
(TCVD) activities and/or during audit/ investigation.
The MIN Sticker shall be a security void sticker which reveals a warning
message once opened, removed, resealed or tampered. The MIN Sticker must be
securely attached at the back of the machine to which it refers and must be
conspicuously visible to the public. The MIN Sticker shall contain the following
information, to facilitate verification:
a. Machine Identification Number;
b. Name and TIN of the buyer/user (12 digits) and Branch Code;
c. Permit to Use Number ;
d. Machine Serial Number;
e. Barcode.
SECTION 4. Penalty Clause. - In line with RMO Nos.9-2006 and 19-2007 in relation to Section 264 (a) of the NIRC, as amended, failure of the taxpayer to register POS/CRM and/or business/sale machine generating receipts/invoices shall be subject to a penalty of P25,000 for the first offense, and P50,000 for the second offense. If warranted, a criminal case may also be filed against the offender, where the criminal penalty imposed is a fine of not less than P1,000 but not more than P50,000 and imprisonment of not less than two (2) years but not more than four (4) years.
For purposes of these Regulations, the mere failure to post or attach the MIN Sticker to the POS/CRM and/or business/sale machine generating receipts/invoices shall be subject to a penalty fee of P1,000 per machine or institution of a criminal case against the offender where the imposable penalty shall be a fine of not more than P1,000 or imprisonment of not more than six
(6) months, or both pursuant to Section 275 of the NIRC, as amended, as implemented by RMO No. 19-2007.
If I you have the time, I suggest you read Revenue Memorandum Order No. 31-2003 which prescribes the Guidelines and Procedures for the Implementation of the Modified Tax Compliance Verification Drive (MTCVD) and Revenue Memorandum Order No. 45-2004 which prescribesing the Guidelines and Procedures on Unregistered Establishments Apprehended During Tax Compliance Verification Drive (TCVD).