Taxpayers who wish to file their value-added tax (VAT) returns and pay the corresponding VAT on a monthly basis have the option to do so, but they must still file the quarterly VAT returns and pay the corresponding VAT liabilities, according to the Bureau of Internal Revenue (BIR)
On May 10, 2023, BIR issued Revenue Memorandum Circular (RMC) No. 52-2023, or the “Optional Filing and Payment of Monthly VAT Returns (BIR Form No. 2550M) for VAT-Registered Persons.”
The issuance comes after the bureau “observed that there are taxpayers who are requesting that they be allowed to file their VAT returns and pay the corresponding VAT on a monthly basis through the use of BIR Form No. 2550M.”
“VAT-registered persons may still choose to file the VAT returns and pay the corresponding VAT liabilities on a monthly basis if they deem so convenient,” confirms RMC 52-2023.
“However, should they choose to file the VAT returns on a monthly basis, they are still required to file the quarterly VAT return and pay the corresponding VAT liabilities as mandated under the Tax Code.”
Earlier, the BIR said that to simplify the filing of VAT returns, beginning January 1, 2023, the filing and payment of VAT imposed under the Tax Code will be done within 25 days following the close of each taxable quarter.
The new filing system is prescribed under Revenue Regulations (RR) No. 13-2018, issued on March 15, 2018. This ruling requires taxpayers to file just four VAT returns beginning 2023 compared to the normal 12 filings within the taxable year. The order was issued to lessen the burden of tax filings for VAT returns of companies.
With this, taxpayers are no longer required to file the Monthly VAT Declaration (BIR Form No. 2550M) but will instead file the corresponding Quarterly VAT Return (BIR Form No. 2550Q).
However, RMC 52-2023 now says taxpayers may continue to file and pay the VAT monthly using BIR Form No. 2550M if they want to.
“In this regard, the procedures and guidelines set forth in RR Nos. 16-2005, 6-2014, RMC No. 68-2005 and other related revenue issuances regarding the use of BIR Form No. 2550M shall continue to apply.”
The circular assures that there will be no penalties if a taxpayer chooses to make this switch in the filing and paying of VAT returns.
“…if the VAT-registered person opts to switch from filing the VAT return and paying tax on a monthly basis using BIR Form No. 2550M to quartely filing using BIR Form No. 2550Q, or vice versa, no penalties shall arise.”
But the BIR emphasized that the filing of BIR Form No. 2550Q and payment of VAT must be made within the period provided under the Tax Code, which is within 25 days following the close of each taxable quarter.
“As to the monthly filing of BIR Form No. 2550M, there shall be no prescribed deadline thereof,” it said.
The circular takes immediate effect.