ERPNext BIR / Bureau of Internal Revenue Registration (Philippines)

1

Hi Good Day, We are planning to use Erpnext as our ERP system here in the philippines. Does anyone have an idea specially erpnext user in the Philippines if erpnext is capable to BIR registration?.

and by the way BIR required sworn statement and proof of system ownership? since this is an open source application how can we declare it?.

Thanks in advance

1 Like
2

My friend have the same problem when he made a Pharmacy System using ERPNext. (He cancelled his project, due to registration problem also).

1 Like
3

oh that’s a big problem then. hopefully someone here knows if there are other things to work on.

4

Hi yhenn,
We are also thinking of using ERPNext for our company (events management) and I am under the assumption that you are referring to something like “RMO-9-2021 Annex A” (since this is commented on 2022, the actual requirements might have changed).
I am under the assumption that the proof of ownership can be defined as:

  1. If you will build the system from scratch (ie. setting up your own servers or renting a VPC), then you could assume the ownership of that specific machine. However, I don’t know if you could also say that you “own” a VPC as it is only exist virtually (ie. no/shared hardware is technically unownable)
  2. If you will use Frappe’s cloud service, then it might require joint affidavit. I doubt that this can be given by Frappe, as some providers I’ve asked have a hard time understanding BIR’s requirements.

If I have the time, I could ask our local BIR office then I’ll get back to this.
Cheers!

1 Like
5

Any news on what had happened on your end?

6

any news who uses ERPNext that is accredited with BIR Computerized Accounting System (CAS)?

7

Hello, ERPNext is now approved by the BIR for Computerized Accounting System.

1 Like
8

How? Do you have the requirements that we can send to the BIR?

9

Any update on this?

Asking google resulted to this,

—
For the registration of a Computerized Accounting System (CAS) using open-source software with the Bureau of Internal Revenue (BIR), proof of ownership must establish your right to use, modify, and manage the system’s data and configuration.

Proof of Ownership for Open Source Software (OSS):

  • Sworn Statement: A notarized declaration (Annex “C” or “E” of RMO No. 9-2021) affirming that the taxpayer has full control over the system, including its source code, data, and configurations.

  • System Documentation: Detailed documentation of the system’s architecture, including evidence of ownership of the server or Virtual Private Cloud (VPC) where the software is hosted.

  • License Documentation: If the open-source license allows, documentation verifying the license (e.g., GPL, MIT, Apache) can be included.

  • Development Details: If your company modified the open-source code, a declaration of the modifications and the resulting ownership of those customizations is necessary.

    Frappe Forum +4

Alternative Scenarios:

  • Outsourced Development: If you hired a third party to implement open-source software, you must provide a Joint Sworn Statement (Annex “E” of RMO No. 9-2021) and a contract stating that the system and its source code are for your exclusive use.

  • Self-Hosted: A statement certifying that the software is self-hosted on company-owned or rented servers.

    Frappe Forum +3

It is important to emphasize that for BIR purposes, ownership means having full authority over the software’s data, structure, and audit trail functionality, rather than owning the open-source license itself.

Bureau of Internal Revenue

1 Like
10

Hello, I’m also a ERPNext user here in the Philippines. I’ve argued with the BIR officer a while ago regarding ERPNext when it can be called a CAS or CBA w/ Invoicing. We ended up discussing with someone at the National Office of BIR or main office.

It turns out, if we self-host it, maintain it (updates, server maintenance, etc.), and change the templates; It’s considered as In-house development software since Frappe isn’t the one who maintains, setup, or changes something on your server other than minor updates.

If you subscribe to Frappe cloud, then we need to sign the joint sworn statement for some reason even though the software is open source, since Frappe is maintaining the service through their servers.

On my registration, it’s considered as CBA w/ invoicing because it lacks the audit trail format that they want and other functionalities that they’re expecting. It’s okay for me, I don’t need a lot of functions anyways since I’m a solo entrepreneur and can automate the software to my needs.