Changes need time

At a conference recently held by professional accountants where the key features of the House Bill (HB) No. 4774, also known as the Tax Reform for Acceleration and Inclusion (TRAI), were presented, the participants elicited the strongest reaction to the proposed changes in bookkeeping rules. The reaction is understandable, considering that these professional accountants know firsthand the challenges taxpayers face in their businesses, which include, among others, complying with complex tax rules and time-consuming bookkeeping requirements.

Under HB 4774, VAT-registered taxpayers are required to use CRM/POS machines and to comply with the mandatory link, at the taxpayer’s expense, of the CRM/POS machines and certain books to the BIR’s system. The linkage between the taxpayer and the BIR must be done within one-and-a-half years from the effective date of the law.