RMC No. 39-2018: Reiterates the imposition of Value-Added Tax on goods disposed of or existing as of the date of change in or cessation of status of a person as VAT-Registered taxpayer

Summary

RMC No. 39-2018 reiterates that goods existing or disposed of when a taxpayer changes from VAT to Non-VAT status are subject to VAT under Section 106(A) of the Tax Code of 1997, as amended by Republic Act No. 10963.

Key points

1. Goods covered. Goods or properties originally intended for sale or use in business, including capital goods, that are disposed of or existing on the date of the change of status.
2. Return and payment. The taxpayer files the quarterly VAT return covering the period when the change happened and pays the VAT due.

Who is affected

• Taxpayers changing status from VAT to Non-VAT

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