RR No. 03-2003: Extends the deadline for registration and other compliance requirements during the transitory period of the imposition of Value-Added Tax (VAT) on sale of services by persons engaged in the practice of profession or calling professional services rendered by general professional partnerships; services rendered by actors, actresses, talents, singers and emcees; radio and television broadcasters and choreographers; musical, radio, movie, television and stage directors; and professional athletes, as well as services rendered by customs, real estate, stock, immigration and commercial brokers, beginning January 1, 2003

Summary

RR No. 03-2003 extends the registration and other compliance deadlines during the transitory period of the VAT on sale of services by professionals, entertainers, athletes and certain brokers beginning January 1, 2003.

Key points

1. Registration and VAT declaration. Affected taxpayers register as VAT taxpayers without penalty not later than February 28, 2003. The January 2003 VAT Declaration may be filed without penalty up to the deadline for the February 2003 declaration.
2. Who is already under VAT. The services are subject to VAT (output tax) from January 1, 2003. Those whose gross receipts for the preceding year (or expected gross receipts for the current year, for new taxpayers) do not exceed P 550,000 pay only the 3% Percentage Tax, unless they opt for the VAT system.
3. Provisional receipts. Newly covered taxpayers may issue provisional or temporary receipts pending VAT registration. These are replaced immediately by VAT Official Receipts once available.
4. Unused receipts. Those changing from NON-VAT to VAT submit on or before February 28, 2003 an inventory of unused receipts as of December 31, 2002, with booklet numbers and serial numbers. Unused NON-VAT receipts may be used for VAT transactions if stamped with the phrase VAT-registered as of _____, until June 30, 2003.
5. Other submissions. The information return on billed but uncollected sale of services, and the inventory of goods (other than capital goods), materials or supplies for use in business, are due not later than February 28, 2003.

Who is affected

• Professionals, general professional partnerships, actors, actresses, talents, singers, emcees, broadcasters, choreographers, directors and professional athletes
• Customs, real estate, stock, immigration and commercial brokers

Deadlines and effectivity

• Registration: not later than February 28, 2003
• Inventory of unused receipts and other submissions: not later than February 28, 2003
• Stamped NON-VAT receipts usable until June 30, 2003

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