Summary

RMC No. 2-2004 clarifies the VAT taxable transactions of the Philippine Ports Authority (PPA) and amends Revenue Memorandum Circular No. 20-88.

VAT on PPA fees and charges. Because of Republic Act No. 7716, PPA fees and charges are subject to VAT, including but not limited to: port dues and anchorage fees, dockage-berthing income, usage fee, wharfage fees, storage fees, lay-up fees, share in arrastre/stevedoring income, fund management income, pilotage, and all other income.
Invoice contents. For every sale, the PPA invoice or receipt carries the information required under Section 237 of the National Internal Revenue Code of 1997. It also states that PPA is a VAT-registered person, followed by its TIN, and shows the total amount payable with an indication that it includes VAT.
Quarterly return. The PPA files its quarterly return of gross sales or receipts within twenty five (25) days after the close of the taxable quarter. It uses the April 2002 (ENCS) version of the Quarterly VAT Return (BIR Form 2550Q). Amounts in the first two monthly VAT declarations are still included in the quarterly return, and monthly payments are credited to arrive at the net VAT payable or excess input tax or over-payment.
Monthly payment. The PPA pays the tax monthly on taxable sales or receipts for the month, using the VAT declaration, within twenty (20) days after the end of each month. Each quarter’s VAT payable or excess input tax is reduced by taxes paid for the preceding two (2) months and by the advance payments and creditable VAT withheld by payors for the three months of the quarter.

Quarterly VAT return within twenty five (25) days after the close of the taxable quarter
Monthly VAT payment within twenty (20) days after the end of each month

Summary by Tax Resources PH. It is not a substitute for the full text of the issuance or professional advice.

RMC No. 02-2004: Clarifies the issues on VAT taxable transactions of Philippine Port Authority.