RR 13-2018: Update on VAT Reporting 2023 (RMC 5-2023)
PUBLISHED: January 19, 2023
In the recently published RMC 5-2023 by the Bureau of Internal Revenue entitled “Providing Transitory for the Implementation of the Quarterly Filing of VAT Returns Starting January 1, 2023 Pursuant to Section 114(A) of the National Internal Revenue Code of 1997 (Tax Code), as Amended by Republic Act (RA) No. 10963, Otherwise Known as the “Tax Reform for Acceleration or Inclusion” or the “TRAIN Law” states that Section 4-114-1 (A) of RR 13-2018 indicating that “beginning January 1, 2023, the filling and payment required under this subsection shall be done within twenty-five days following the close of each taxable quarter”.
Looking back at the implemented RR 13-2018, Section 4-114-1 (A) it states that the closing of every taxable quarter, all person liable to pay value-added tax shall file a quarterly return of the amount of his/her gross receipts or sales within twenty-five (25) days. Taxable quarter is defined in the RR 13-2018 as the quarter that is synchronized with the income tax quarter of the taxpayer which can be either fiscal quarter or calendar quarter. Provided, that the VAT-registered persons shall pay the value-added tax on a monthly basis using 2550M. Ending the subsection with the statement “Provided, finally That beginning January 1, 2023, the filing and payment required under the Tax Code shall be done within twenty-five (25) days following the close of each taxable quarter.” Wherein RMC 5-2023 comes into implementation.
To make matters short, RMC 5-2023 imposes the last sentence in the RR 13-2018, Section 4-114-1 (A) that no longer requires VAT-registered taxpayers to file Monthly Value-Added Tax Declaration (BIR Form 2550M) for transactions starting January 1, 2023 but shall instead file the Quarterly Value-Added Tax Return (BIR Form 2550Q) within twenty-five (25) days after closing of the quarter when the transactions were made.
Below is the table provided by the bureau as a guide for the new circular:
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Disclaimer: QNE Software published this RR 13-2018: Update on VAT Reporting 2023 (RMC 5-2023) blog to inform taxpayers of the BIR’s latest update. This blog only serves to provide valuable information and thus QNE cannot be held liable for any error that readers may commit that will result to misinterpretation or other related causes. It can and will change anytime without prior notice in accordance to BIR.