Dear Valued Clients,

We would like to provide an update regarding Revenue Regulations No. 7-2024 (RR 7-2024), issued by the Bureau of Internal Revenue (BIR). This regulation implements changes in the use of official receipts (ORs) and invoices, in line with the Ease of Paying Tax Act (EoPT). Below are the key points and compliance recommendations:

1. Transition from Official Receipts to Invoices: 
   - Official receipts will no longer be considered primary documents for tax purposes. Instead, invoices will serve as the primary evidence of sales transactions.
   - Businesses can convert their remaining official receipts into invoices by crossing out "Official Receipt" and stamping the word "Invoice" on the document. These converted invoices can be used for claiming input VAT until December 31, 2024. After this date, they can only serve as supplementary documents.

2. Compliance Requirements: 
   - Notify your Revenue District Office (RDO) and submit an inventory of unused official receipts within 30 days of the regulation's effective date (by May 27, 2024).
   - Stamp the phrase “THIS DOCUMENT IS NOT VALID FOR CLAIMING OF INPUT TAX” on any remaining official receipts if they are to be used as supplementary documents.
   - Reconfigure computerized accounting systems to issue invoices instead of official receipts. This change is considered a major system enhancement and requires a new Permit to Use.

3. Implementation Deadlines:
   - For manual and loose-leaf receipts, compliance was required by May 27, 2024.
   - For computerized systems, the deadline to complete necessary enhancements is June 30, 2024, with a possible extension to October 27, 2024, subject to BIR approval.

4. Minor System Changes: 
   - Systems such as CRM, POS, and e-receipting need only minor enhancements to change "Official Receipt" to "Invoice." These businesses do not need to reaccredit their systems but must inform the BIR of the starting serial numbers of the converted invoices.

For further details and the full text of RR 7-2024, you can refer to the official documentation provided by the BIR or consult with a tax professional to ensure full compliance with the new regulations.

Regarding the BizBox system, our team has conducted an initial review and assessment of the compliance requirements outlined in the new RR 7-2024.. To accommodate these necessary changes, we are currently in the final design phase of system enhancements before development begins. While an update to the system is underway, our clients can utilize a temporary workaround. If they are currently using or printing existing official receipts within the system, they have the option to edit their RDL and modify "OFFICIAL RECEIPT" to "SALES INVOICE".

Thank you for your attention to this update. We appreciate your cooperation as we work towards ensuring compliance with RR 7-2024. Should you have any questions or require further assistance, please don't hesitate to reach out to us.

Best regards,

BizBox, Inc.