RMC No. 37-2004: Clarifies the settlement of the Value-Added Tax liabilities of pawnshops for taxable years 1996 to 2002.

Key points

1. Settlement amount. Pawnshops that duly execute the Settlement Agreement and fully comply with its terms may settle their VAT liabilities for taxable years 1996 to 2002 by paying 25% of the VAT due. The basic VAT due is gross receipts for the period multiplied by 10%.
2. Payment dates. Payment and requirements for taxable years 2000 to 2002 are due on or before July 15, 2004. Those for taxable years 1996 to 1999 are due on or before December 15, 2004.
3. After the deadlines. Pawnshops can no longer settle under the Settlement Agreement. Revenue officers are instructed to apply the full force of the law on pawnshops that did not avail of it and to collect the full tax due and increments.

Who is affected

• Pawnshops with VAT liabilities for taxable years 1996 to 2002

Deadlines and effectivity

• Taxable years 2000 to 2002: on or before July 15, 2004
• Taxable years 1996 to 1999: on or before December 15, 2004