Authority to Print Receipts & Invoices

Hello,
Good day.
I am a new business owner and I am hoping to get advice my current situation with BIR.

I just registered my business last January 2016. I have been busy processing the many requirements needed for the business permits, so I have not yet officially started my business.

This month, April 2016, I received a call from the Printing Company about a penalty from the BIR. It turns out that the "Authority to Print Receipts & Invoices" need to be completed within 30 working days. However, I was late in complying.

I was informed by the BIR that I need to pay the penalty of 10,000.

I was shocked by the amount. I was not informed about this during the seminar that there was a 30 day deadline.

All the while I have not yet started the operation of my business, since I am still prioritizing my business permit requirements. My sales for January to April is still zero.

I understand the reason for the penalty, but it is too high especially since I have zero income from my business. Is there a way to lessen the penalty?

Thank you

Hello,
I understand that I need to pay the penalty. I am just wondering if someone has experienced the same situation.

I have filed my 2551M forms for January, March and April and 1701Q for 1st Q. I declared my income as zero pesos.

I'm hoping there a certificate for non-operation, so the penalty would be commutated differently.

I would appreciate any advice. Many thanks and God bless

REDICILOUS demand
IF there isn't an exception for businesses which hasn't started yet, so not needing receipts...

"I'm hoping there a certificate for non-operation, so the penalty would be commutated differently."
You HAVE send them the 0 income forms, so it's even redicilous IF they demand any certificate in such situations.
Have you asked BIR?
If so - what did they say?

Hello Lunkan,
Thank you for your reply.

I still cannot believe the penalty amount of 10,000 pesos

We talked to the clerk and we also talked to the director of that particular BIR office - and explained our situation.

According to them, this is the penalty stated so there is no other way but to pay.

We have not seen any reference on this penalty. I'm wondering if anyone can confirm if this is true. And if there is a way to have a different computation especially for those businesses that have not yet started to operate.

We would like to settle this as soon as possible, because we would also like to start our business. And we know that if we start to operate without receipts, then we would also be penalized.

It seems it is a lose-lose situation for us

It's a dreary scenario for new (and small) business owners

Now I understand why a lot are discouraged to go into legit business here in the Philippines

"We have not seen any reference on this penalty. I'm wondering if anyone can confirm if this is true. And if there is a way to have a different computation especially for those businesses that have not yet started to operate.
We have not seen any reference on this penalty. I'm wondering if anyone can confirm if this is true. "
It's BIR's work to show you...I would ask them to SHOW you the rule to be sure if the rule realy are that redicilous...
Perhaps they have MISSUNDERSTOOD it (only ment for businesses. which have started)
or perhaps they missunderstand it on purpouse to put the money in own pocket


"We would like to settle this as soon as possible, because we would also like to start our business. And we know that if we start to operate without receipts, then we would also be penalized. "
THAT would make sence.


"It's a dreary scenario for new (and small) business owners :'(

Now I understand why a lot are discouraged to go into legit business here in the Philippines"
Yes. It seem they don't want people to have business...

That's not the only evil rule. (E g demanding SMALL businesses having to pay licensed acountants !!! In my home country only companies (minimum 250 000p start capital) need that. I have done my own and other's acounting many years WITHOUT needing to be licensed...)

It seems like we have no choice but to pay the fee. Otherwise we cannot operate

So I am just hoping that my experience here will help other business owners.

Please DO NOT DELAY in processing your Authority To Print Receipts/Invoices - otherwise BE READY TO PAY the PENALTY of 10,000.

Good luck to all of us!

unfortunately the date of you are registered with the BIR is considered the 1st day of operations, even if income is 0. Im assuming you are already registered thats why you have been filing tax returns.

your accountant should've told you about the deadline. But before the penalty for late filing was only P1,000.00 this was 2-3 years ago.
The P10,000.00 penalty is for not issuing OR to customers which you did not do naman

lukekyle wrote:unfortunately the date of you are registered with the BIR is considered the 1st day of operations, even if income is 0. Im assuming you are already registered thats why you have been filing tax returns.

your accountant should've told you about the deadline.  But before the penalty for late filing was only P1,000.00 this was 2-3 years ago.
The P10,000.00 penalty  is for not issuing OR to customers which you did not do naman

But then is 10 000 wrong, because he haven't had any customers...

@pinktigerlily Ask BIR to show you the rule text, so you can read yourself if it's corect. Or if they refuce - demand them to tell which law/rule number they get that from, if they haven't told that allready with the decision.

@Lunkan and @lukekyle

That was exactly our sentiment. Delayed processing of ATP is different from not issuing receipts to customers.

BIR policy clearly states that non-issuance of receipts to customers has a penalty of 10,000, but no one was able to give us the policy about ATP.

We spent 2 whole mornings being passed around by different people, so we decided to just pay the 10,000 fine. (to spend any more time there was a waste of time!   )

We cannot afford any delays in our operations. We have already lost opportunities because we cannot sell without receipts.

Thank you for your comments. I appreciate them.

Still I am curious to know if anyone can share similar experiences. It would help my sanity to know that I'm not the only one who thinks this whole thing stinks of corruption!

Btw - How much cost a (minimum) printing?

that would depend na on the printer

We paid 500 PHP. I forgot if it was for 5 or 7 booklets. I left the receipt at the office, I can update my post next week on exactly how much.

Thanks

pinktigerlily wrote:We paid 500 PHP. I forgot if it was for 5 or 7 booklets. I left the receipt at the office, I can update my post next week on exactly how much.

Thank you. That's enough info for me, because I just wondered roughly how much I will WASTE by I will have to print such with WRONG ADRESS probably by BIR are that much in a hurry.

(Because it will probably be wrong adress, because the corect adress will probably not be known when BIR force the printing BEFORE the business starts... This depend of my new business will buy land and start business at it, including the office will be there. The business can't buy land before it's rregistered... and by that it isn't sure what adress the business will get for REAL, so that's why I will have to register it somewhere else first with that adress in the registration papers FIRST, so the printing will be wasted with that wrong adress...

Minimum 5 or 7 booklets ! I haven't decided definite which business yet, but most of them will just sell container loads to a FEW customers a FEW times per year, so such priniting will be enough for 100 YEARS...
(I don't bother much about 500p but I don't like any wasting - and I don't like STUPID rules...

I agree, that sucks!

Your receipt would contain the address currently registered in your business permit.

Unfortunately, if you go over the 1 month deadline, you will have to pay the 10k penalty - so I guess your receipts will have to contain your "temporary" address.

Still 500 sounds way better than 10k

By the way, I just learned that the receipt are valid for 3 or 5 years.

pinktigerlily wrote:Your receipt would contain the address currently registered in your business permit.

Yes. And then I will need to print many new, when I get the corect adress...

pinktigerlily wrote: By the way, I just learned that the receipt are valid for 3 or 5 years.

Ever more STUPIDITY !!! because why have any time limit shorter than until the business moves or ends...
I start wondering if the makers of such stupid rule have commision from the printer...