BIR issues transitory provisions for quarterly filing of VAT returns

The Bureau of Internal Revenue (BIR) has issued transitory provisions for implementing the quarterly filing of Value-Added Tax (VAT) returns starting January 1, 2023.

Revenue Memorandum Circular (RMC) No. 5-2023, issued on January 13, 2023, provides the transitory provisions for the implementation of the quarterly filing of VAT returns starting January 1 pursuant to Section 114(A) of the National Internal Revenue Code of 1997 (or Tax Code), as amended by Republic Act No. 10963 (TRAIN Law).

Starting January 1, 2023, VAT-registered taxpayers are no longer required to file the monthly VAT Declaration (BIR Form No. 2550M) for transactions. They will instead file the corresponding Quarterly Value-Added Tax Return (BIR Form No. 2550Q) within 25 days following the close of each taxable quarter when the transaction transpired.

RMC No. 5-2023 says that to avoid confusion during the initial implementation of the simplified process, particularly for taxpayers that are under a fiscal period of accounting, the following transitory provisions are provided:

  • For the quarter ending January 31, 2023 – For Form 2550M, filing is required for transactions covering December 2022, with filing done not later than January 20, 2023. But filing is not applicable to transactions covering January 2023, and not required for transactions covering February 2023
  • For the quarter ending January 31, 2023 – For Form 2550Q, filing is not applicable to transactions covering December 2022. But it is required for transactions covering January 2023, with filing not later than February 27, 2023. Fling is not applicable to transactions covering February 2023
  • For the quarter ending February 28, 2023 – For Form 2550M, filing is required for transactions covering December 2022, with filing not later than January 20, 2023. It is not required for transactions covering January 2023; and it is not applicable to transactions covering February 2023
  • For the quarter ending February 28, 2023 – For Form 2550Q, filing is not applicable to transactions covering December 2022 and January 2023, but filing is required for transactions covering February 2023, with filing not later than March 27, 2023
  • For the quarter ending March 31, 2023 – For Form 2550M, filing is not applicable to transactions covering December 2022 and it is not required for transactions covering January 2023 and February 2023
  • For the quarter ending March 31, 2023 – For Form 2550Q, filing is required for transactions covering December 2022, with filing not later than January 25, 2023; it is not applicable to transactions covering January 2023 and February 2023

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.

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