1) Why “Authority to Print” matters

Philippine tax compliance is built around documentation. For most businesses, the primary “proof” of sale of goods or services is the BIR-registered invoice/receipt issued to customers. The Bureau of Internal Revenue (BIR) regulates not just whether you issue invoices/receipts, but also how they are printed, what they contain, and whether they are authorized for use.

The Authority to Print (ATP) is the BIR’s control mechanism for manually printed principal invoices/receipts (and, in many cases, other accountable forms). It links:

the taxpayer (TIN, registered address, business style),
the printer (BIR-accredited printer and printing details), and
the document series (serial numbers and validity period),

so the BIR can trace what was printed, what should exist, and what should be issued.

Failing to comply is not treated as a harmless paperwork lapse: ATP-related violations commonly trigger criminally punishable offenses under the Tax Code, administrative penalties, and in enforcement settings, may support temporary closure (“Oplan Kandado”).

2) Core legal framework (high-level)

The rules come primarily from:

National Internal Revenue Code (NIRC), as amended (often referred to as the Tax Code), especially provisions on:
- issuance of receipts/invoices,
- printing and registration requirements,
- penalties for failure to issue / unauthorized printing, and
- the BIR’s power to temporarily suspend business operations for enumerated violations; and
BIR issuances (Revenue Regulations, Memorandum Orders/Circulars, and RDO-level procedures) that operationalize:
- ATP application and approval,
- invoicing content and format,
- validity periods,
- handling of changes (address/name/VAT status),
- cancellation/destruction of unused receipts, and
- compromise penalty schedules.

Because BIR issuances change over time (including formats, forms, thresholds, and schedules), the stable “anchor” is the Tax Code, while the procedures are largely in BIR regulations.

3) What an ATP is (and what it is not)

3.1 Definition and function

An Authority to Print is a BIR approval that authorizes a taxpayer (through a BIR-accredited printer) to print a specified quantity/series of BIR-registered principal invoices/receipts with prescribed information and controlled serial numbering.

3.2 ATP vs. “Permit to Use” (PTU) for computerized receipts/invoices

Many businesses use:

Point-of-Sale (POS) systems,
Cash Register Machines (CRM), or
Computerized Accounting Systems (CAS) that print invoices/receipts.

These typically require a Permit to Use (PTU) or equivalent BIR authorization for computerized invoices/receipts, rather than (or in addition to) a traditional ATP for manual printing. The compliance logic is the same: no BIR authorization, no valid receipts.

4) When you need an ATP

You generally need an ATP if you will use manually printed principal invoices/receipts, such as:

Sales Invoices (for sale of goods/properties),
Official Receipts / Service Invoices (depending on the prevailing invoicing framework for services),
other principal documents that the BIR requires to be registered and controlled.

You also typically need ATP coverage (or BIR authorization) for certain accountable forms and documents that function like invoices/receipts in the tax system.

Common situations that trigger ATP action

New business registration and you intend to use manual invoices/receipts.
You are running out of your current series (about to be exhausted).
Your ATP validity period is expiring (many forms carry a printed validity period).
Change in registered information (name, address, VAT status, line of business) that affects what must appear on your invoices/receipts.
Switching printers or changing invoice/receipt format substantially.

5) Typical ATP process (practical workflow)

While exact documentary requirements vary by RDO and current issuance, the common flow is:

Choose a BIR-accredited printer (using a non-accredited printer is itself a violation).
Prepare the application (commonly done via a BIR-prescribed form) and submit to the taxpayer’s Revenue District Office (RDO).
The RDO evaluates:
- registration status,
- correctness of invoice/receipt contents,
- series control and quantity,
- printer accreditation and details.
ATP is approved and released for printing.
Printer prints the invoices/receipts with:
- taxpayer details,
- serial numbers,
- ATP details (authority number/date, printer info),
- and required phrases/disclosures.
Printer delivers; taxpayer receives, checks, and uses.
Taxpayer must maintain controls:
- issuance sequence,
- custody of unused booklets,
- reporting/cancellation rules when needed.

6) Validity, exhaustion, and “expired ATP” risks

Many BIR principal invoices/receipts carry a printed statement that they are valid only for a limited period (commonly five (5) years from ATP date, subject to the governing issuance). Two practical points follow:

6.1 “Expired” receipts are treated as unauthorized

If your receipts/invoices show an expired validity period (or are otherwise not authorized), continuing to issue them is often treated as:

use of unregistered/unauthorized receipts, and/or
failure/refusal to issue valid receipts/invoices,

both of which are penalized under the Tax Code and commonly used as enforcement triggers.

6.2 Best practice

Do not wait for the last booklet:

track the ATP date, valid-until date, and remaining inventory;
apply early for a new ATP; and
plan transitions so you do not issue unauthorized documents even for a day.

7) Common ATP-related violations (what the BIR typically flags)

These are the violations most often seen in field enforcement, audits, and compliance checks:

7.1 Printing violations

Printing invoices/receipts without a valid ATP.
Printing through a non-accredited printer.
Printing more than the approved quantity or outside the approved series.
Altered, fabricated, or simulated receipts/invoices (high-risk; may signal fraud).

7.2 Usage violations

Issuing invoices/receipts that were not BIR-registered (no ATP/PTU, or not properly registered).
Issuing expired receipts/invoices.
Issuing receipts/invoices with missing required information (e.g., incorrect TIN, address, VAT details, series info).
Using documents for the wrong purpose (e.g., issuing “delivery receipts” as if they were the principal invoice/receipt).

7.3 “Failure to issue” issues that overlap with ATP

Even if you have an ATP, you can still violate the law by:

not issuing at all,
issuing late,
issuing multiple/duplicated documents to distort sales,
issuing documents that do not reflect the true transaction.

8) Penalty landscape: criminal, administrative, and closure risk

ATP-related violations sit at the intersection of criminal penalties, administrative penalties, and business disruption remedies.

8.1 Criminal penalties (Tax Code)

Tax Code provisions penalize (among others):

failure/refusal to issue receipts or invoices, and
violations related to printing or using unauthorized receipts/invoices.

These provisions commonly carry:

fines, and
imprisonment,

depending on the specific violation charged and the statute’s parameters.

Important practical consequence: Because many of these violations are statutorily criminal, the BIR often offers an administrative settlement route through compromise penalties (discussed below) before a case is elevated for prosecution.

8.2 Administrative consequences

Even aside from criminal exposure, the BIR can impose administrative consequences such as:

requiring corrective actions (registration, reprinting, replacement),
holding processing of requests (e.g., ATP/PTU, COR updates) until compliance,
disallowing certain claims in audit (context-dependent), and
issuing notices that can escalate to enforcement.

8.3 Temporary closure / suspension (“Oplan Kandado”)

The Tax Code authorizes the BIR to temporarily suspend business operations for specific violations, commonly including:

failure to issue receipts/invoices, and/or
use of unregistered/unauthorized receipts/invoices.

In practical enforcement, ATP issues frequently appear in closure cases because using unauthorized/expired receipts is treated similarly to not issuing valid receipts at all.

9) Compromise penalties vs. compromise settlement of tax: don’t mix them up

The phrase “compromise amount” gets used loosely, but it can refer to two different concepts:

9.1 Compromise penalty (for a violation)

What it is: A BIR-offered settlement amount, usually based on a schedule of compromise penalties, paid in lieu of pursuing criminal prosecution for certain violations.
What it is not: It is not the “tax due” itself. It does not automatically resolve a deficiency tax assessment unless the deficiency is separately settled.

Key idea: You are settling a case/violation (e.g., use of expired receipts), not necessarily paying tax on unreported income (unless that is separately assessed).

9.2 Compromise settlement of a tax deficiency (civil compromise)

What it is: A settlement of an assessed or disputed tax liability (basic tax, and sometimes related increments), allowed under the Tax Code under defined grounds and minimum compromise rates.
When it appears in ATP matters: If an ATP violation is discovered in an audit that also results in deficiency taxes, you may face:
- deficiency tax settlement discussions, and
- separate compromise penalty discussions for the violation.

10) When to pay compromise penalties in ATP cases (timing rules and real-world practice)

10.1 The practical “window” to pay compromise penalties

Compromise penalties are typically paid during the administrative stage—when the matter is still being handled by the BIR as a compliance/enforcement case and before it becomes a court case.

In practical terms, compromise penalty payment is usually appropriate when:

you received a notice of violation, compliance notice, or enforcement finding;
the BIR is offering settlement under its compromise penalty schedule; and
you are taking corrective action (e.g., applying for ATP, stopping use of unauthorized receipts, surrendering/cancelling unused documents).

As a rule of thumb: the later a case progresses toward prosecution, the less “clean” the compromise route becomes. Once a criminal complaint is filed in court, administrative compromise penalty settlement is generally no longer the straightforward path (because dismissal and criminal liability become subject to prosecutorial and judicial processes).

10.2 Common payment triggers

You will most commonly be asked (explicitly or functionally) to pay compromise penalties in ATP contexts when:

To lift or avoid closure/suspension
- In closure operations, payment of compromise penalties (plus full compliance) is commonly part of the conditions for lifting a suspension order.
To process or release an ATP application
- Some RDOs require you to clear outstanding receipt-related violations before releasing new authorizations.
To close a compliance case
- A compromise penalty payment is often the “closure mechanism” for the violation, alongside proof that you corrected the root issue.
To settle multiple documentary violations
- In practice, BIR findings may bundle related issues (registration updates + invoice defects + expired receipts). Compromise penalties may be assessed per violation category.

10.3 Pay early when the BIR gives you a compliance deadline

BIR notices typically include a period to respond and comply. If compromise penalty settlement is offered, paying within the stated compliance timeframe helps you:

show good faith,
avoid escalation,
restore processing of authorizations,
reduce the risk of enforcement action becoming adversarial.

10.4 Voluntary disclosure and “preemptive” settlement

Businesses sometimes discover internally that they used expired receipts or issued unauthorized documents. In such cases, voluntary disclosure to the RDO and immediate corrective action may allow resolution through compromise penalties rather than escalated enforcement—but compromise is discretionary and depends on facts (volume, duration, intent indicators, prior history, and whether fraud is suspected).

11) When you pay “compromise amounts” for deficiency taxes (civil compromise) in this space

ATP issues sometimes surface during an audit that results in deficiency taxes. If you are compromising a deficiency tax case (civil compromise), the typical timing points are:

During administrative settlement discussions (before finality of assessment, depending on posture),
After assessment but before collection escalates, or
As part of a formal compromise settlement process under the Tax Code’s compromise provisions.

Because this is a different track from compromise penalties, the payment timing is driven by the assessment/collection process, not purely by receipt-printing compliance.

12) How compromise penalties are computed and documented (general practice)

12.1 “Schedule-based” and classification-sensitive

BIR compromise penalties are typically guided by an internal schedule issued via BIR memorandum issuances and may vary based on:

taxpayer size/classification,
nature of violation,
number of occurrences,
whether the taxpayer is VAT-registered,
and sometimes other factual indicators.

Do not treat old schedules as permanent. Compromise penalty schedules are among the more frequently revised administrative references.

12.2 Documentation and payment mechanics

While exact steps vary, the workflow commonly includes:

determination of the violation category,
computation using the compromise schedule,
preparation of payment (often using a BIR payment form appropriate for “other payments/penalties”),
payment through the appropriate channel (authorized agent bank or RDO collection channels depending on the taxpayer’s setup),
submission of proof of payment to the handling office, and
issuance of a closure/clearance notation (or lifting order, or case closure memo).

12.3 What payment does—and does not—accomplish

Payment typically accomplishes:

settlement of the administrative violation case (if accepted),
restoration of compliance standing for that violation,
and a basis to proceed with authorizations/processing that were being held.

Payment does not automatically:

validate previously issued unauthorized receipts,
erase deficiency tax exposure from unreported sales (if any),
guarantee there will be no audit, or
protect against prosecution if fraud indicators exist or if the matter has already escalated beyond administrative compromise.

13) Practical scenarios and what to do

Scenario A: You discover your ATP expired but you continued issuing receipts

Risks: Use of unauthorized receipts; possible closure trigger; criminal exposure under receipt provisions. Typical corrective steps:

Stop using expired receipts immediately.
Apply for new ATP (or PTU route if switching to computerized).
Inventory unused expired booklets; follow the RDO’s cancellation/destruction procedure.
Respond to any notice and settle compromise penalty if offered.
Implement a control system (calendar reminders + inventory tracking).

Scenario B: New address / new business name, but you still use old receipts without proper compliance

Risks: Issuing receipts with inaccurate registered information; may be treated as noncompliance, especially if it impairs traceability. Corrective steps: Update registration first, then follow rules on whether old receipts can be stamped/used temporarily or must be replaced, and obtain new ATP if required.

Scenario C: You used a non-accredited printer (even if receipts look “complete”)

Risks: Printing violation; the documents may be treated as unauthorized; higher enforcement attention because this undermines BIR controls. Corrective steps: Discontinue use, regularize via accredited printer and proper ATP, settle violation as handled by the RDO.

Scenario D: You have an ATP, but you issue “delivery receipt” instead of the required invoice/receipt

Risks: “Failure to issue” valid principal invoice/receipt; delivery receipts are generally not a substitute for principal tax invoices/receipts. Corrective steps: Fix issuance practice, retrain staff, ensure POS/manual process always results in valid principal invoice/receipt.

14) Compliance controls that prevent ATP penalties

Master list of accountable forms (type, series, location, custodian).
ATP/PTU tracker (approval date, validity end date, remaining quantity).
Issuance discipline:
- sequential issuance,
- no “skipping” without documentation,
- voiding procedures and retention of voided copies.
Inventory controls:
- store unused booklets securely,
- document transfers to branches,
- reconcile used vs remaining periodically.
Change-management:
- whenever you file BIR registration updates, immediately evaluate whether invoices/receipts must be replaced.
Printer governance:
- use only accredited printers,
- retain print job documentation and delivery certificates,
- verify printed disclosures and series accuracy before use.

15) Key takeaways

An ATP is not a formality; it is a core BIR control over invoices/receipts.
ATP-related noncompliance can lead to criminal exposure, administrative penalties, and in enforcement settings, temporary closure.
Compromise penalties are commonly offered to settle receipt/ATP violations at the administrative stage; they are typically paid during compliance resolution and before escalation to prosecution.
“Compromise amount” may refer either to:
- a compromise penalty for a violation, or
- a civil compromise of a tax deficiency—each with different timing and process.
The safest path is preventive: track validity, manage inventory, update receipts promptly after registration changes, and keep issuance disciplined.