Inventory listing: Goodbye, hard copies! Hello, softcopies
(RMC No. 8-2023 amending RMC No. 57-2015)
The Bureau of Internal Revenue (BIR) has recently issued updates on the submission of the Inventory List and other reporting requirements.
This is one of the BIR’s efforts as it gradually moves toward digitization and strives for paperless government transactions. The circular issued amends Section 2 of Revenue Memorandum Circular (RMC) No. 57-2015, which now prescribes the following:
Removal of “hard copies” or “printed copies” as a mode of submission
Inclusion of “Universal Storage Bus (USB) flash drives”, in addition to DVD-R, as one of the storage media where the soft copies can be saved.
The Bureau reiterates that all taxpayers with tangible asset-rich balance sheets, often with at least half of their total assets in working capital assets, e.g., accounts receivable and inventory, shall submit the annual inventory list. The prescribed formats in soft copies were attached as follows:
Annex A – for a manufacturing, marketing, or retail company,
Annex B & B-1 – for a real estate company, and
Annex C – for the construction industry
Soft copies of the inventory list, including other applicable schedules, shall be stored or saved on a Digital Versatile Disk-Recordable (DVD-R) or USB Flash drive properly labeled and submitted, together with a notarized Sworn Declaration, duly signed by the authorized representative of the taxpayer.
Take into consideration that a Special Power of Attorney, Secretary’s Certificate, or Board Resolution, whichever is applicable, is still required upon submission through a representative.