(RMC No. 5-2023)
The Bureau of Internal Revenue (BIR) issued the transitory guidelines on the removal of monthly VAT return starting January 1, 2023 as enshrined in the TRAIN Law which amended the National Internal Revenue Code (NIRC) of 1997.
Another relief for VAT-registered taxpayers is the reduction of the number of VAT returns filed. Pursuant to Section 37 of the TRAIN Law as implemented by Section 4-114-1(A) of Revenue Regulations (RR) No. 13-2018, beginning January 1, 2023, the filing of BIR Form No. 2550M (Monthly Value-Added Tax) is no longer required. Instead, the corresponding Quarterly VAT Return (BIR Form No. 2550Q) shall be filed and paid within 25 days following the close of each taxable quarter.
In line with this, the bureau issued a guideline under Revenue Memorandum Circular (RMC) No. 5-2023 for taxpayers with a fiscal year accounting period, see table and explanation below:
Just a reminder, if the taxpayer is under the calendar period, the transactions within December 2022 will still be filed using BIR Form No. 2550Q covering the 4th quarter of TY2022. In addition, it should be noted that Summary Lists of Sales, Purchases, and Importation, if any, (SLSPI) is still required.
Please be guided accordingly.
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