Rhode Island Code of Regulations
Title 280 - Department of Revenue
Chapter 20 - Division of Taxation
Subchapter 70 - Sales and Use Tax
Part 12 - Record Requirements (280-RICR-20-70-12)
Section 280-RICR-20-70-12.7 - Magnetic and Electronic Record Requirements

Universal Citation: 280 RI Code of Rules 20 70 12.7

Current through September 18, 2024

A. To the extent a taxpayer maintains accounting records and information in magnetic or electronic format, through a POS system or otherwise, the taxpayer shall set forth in writing the procedures governing their magnetic or electronic system, and the individual(s) who are responsible for maintaining and operating the system with appropriate authorization from the Board of Directors, general partner(s), or owner, whichever is applicable.

1. These governing procedures shall establish:
a. Internal procedures for inspection and quality assurance of the records;

b. A method of documenting where, when, and by whom, the magnetic or electronic system was accessed at any given time including any third party involved in the maintenance and/or upkeep of said system either on or off the business's premises by any means of access either physical or remote including Cloud Computing;

c. Procedures to account for voids, cancellations, or other discrepancies in sequential numbering;

d. Procedures to account for documenting logging functionalities of the POS system so that any and all activity related to operating modes available in the system, such as training mode, and any and all changes in the set-up of the system are recorded;

e. A detailed index of all magnetic and electronic media data that is arranged in a manner that permits the immediate location of any particular record.

B. If these governing procedures are not established, this is prima facie evidence of a lack of internal controls and may subject the taxpayer to sanctions outlined in § 12.8 of this Part.

C. All magnetic and electronic media in regards to quality control, storage, identification, and inspection shall meet industry standards as set forth by the American National Standards Institute, Association for Information and Image Management, or National Institute of Standards and Technology.

D. If a taxpayer chooses to use an electronic record keeping format such as a POS system, the POS system itself and such records must be made available for inspection and examination by the Tax Administrator and/or his or her agents in electronic format; hard copies may be requested by the Tax Administrator and/or his or her agents upon demand.

E. When a display is required on a magnetic or electronic media reader (viewer) or reproduced on paper, the material shall exhibit a high degree of Legibility and Readability.

F. Each POS system transaction record must provide enough detail to independently determine the taxability of each sale and the amount of tax due and collected. Detailed information required for each sales transaction includes, but is not limited to, the individual item(s) sold, selling price, tax due, invoice number, date of sale, method of payment, POS terminal number and POS transaction number.

G. Summary documents alone are not acceptable. A business must keep any and all underlying documents (Documents of Original Entry), such as individual invoices and vouchers, to verify a POS system's summaries. In order to be considered complete, the electronic record must permit the direct reconciliation of receipts, invoices, and other source documents with the entries in the books and records and on the returns of a taxpayer. The records must provide the opportunity to trace a transaction back to the original source or forward to a final total.

Disclaimer: These regulations may not be the most recent version. Rhode Island may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
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