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RR No. 08-2002: Amends further pertinent provisions of RR No 7-95 relative to the time of filing of Quarterly VAT returns; contents and submission of Quarterly Total Monthly Sales and Purchases per supplier or customer, and provides for the penalties and effect of non-submission thereof; and clarifies further the mode of remittance of VAT due from non-residents

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Summary

RR No. 08-2002, issued June 24, 2002, further amends RR No. 7-95 on the time of filing of Quarterly VAT returns and on the Quarterly Summary Lists of Sales and Purchases. It also clarifies how VAT due from non-residents is remitted.

Key points

  1. Quarterly and monthly VAT filing. Quarterly return BIR Form 2550Q (April 2002-ENCS version) is filed within twenty five (25) days after the close of the taxable quarter. Monthly VAT is paid using the VAT declaration form within twenty (20) days after each month ends, for the first two (2) months of the quarter only. EFPS users file and pay five (5) days later. Monthly payments are credited in the quarterly return.
  2. Retirement and new registrants. A person who retires from business with due notice, or whose VAT registration is cancelled, files a final quarterly return and pays within twenty five (25) days from the end of the month of cessation or cancellation. Monthly declarations or quarterly returns are still required if winding up reveals taxable transactions. For new registrants, VAT liability starts on the effective date of registration, the first day of the month after registration, and the first filings follow the month of the quarter in which that date falls.
  3. Consolidated return. Only one consolidated quarterly VAT return or monthly VAT declaration covering the head office and branches, for all VAT lines of business, is filed with the BIR office where the taxpayer is required to be registered.
  4. VAT withholding. The government and its political subdivisions, instrumentalities, agencies and GOCCs withhold VAT at three percent (3%) of gross sales on goods and six percent (6%) of gross receipts on services, creditable against the seller’s VAT. Government public works contractors are subject to eight and one-half percent (8.5%). The government and private payors, large or non-large, withhold ten percent (10%) VAT on the payments specified in the Regulations. Passed-on VAT withheld for a non-resident may be claimed as input tax by a VAT-registered withholding agent. A non-VAT withholding agent treats it as part of the cost of services, as an asset or expense.
  5. Quarterly Summary Lists. VAT-liable persons with quarterly total sales/receipts (net of VAT) exceeding Two Million Five Hundred Pesos (P 2, 5000,000), or quarterly total purchases (net of VAT) exceeding One Million Pesos (P 1,000,000), submit the Quarterly Summary Lists of Sales/Purchases. The sales list covers monthly totals from regular customers, plus casual customers with individual sales of P 100,000 or more. Unreadable diskettes are treated as not submitted.
  6. Shift to fiscal quarters and formats. The shift to a fiscal quarter VAT return starts with the quarter ending July 31, 2002, due on or before August 25, 2002, covering one month with no monthly declaration. The quarter ending August 31, 2002 covers July 1, 2002 to August 31, 2002, with a monthly declaration for July only. The magnetic file format under RR No. 13-97, as amended by RR No. 7-99, applies to quarters ending March 31, 2002 and June 30, 2002. The electronic format applies to the quarter ending July 31, 2002 and thereafter. Unsuccessfully uploaded diskettes for the earlier quarters are re-filed on or before August 31, 2002 after using the BIR validation program.

Who is affected

  • Persons liable to VAT
  • Government agencies and GOCCs acting as withholding agents
  • Private corporations, individuals, estates and trusts acting as withholding agents
  • Government public works contractors

Deadlines and effectivity

  • Quarterly VAT return: within 25 days after quarter close
  • Monthly VAT declaration: within 20 days after month end
  • Fiscal quarter shift begins with the quarter ending July 31, 2002, due August 25, 2002
  • Re-filing of unsuccessfully uploaded diskettes: on or before August 31, 2002

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

Related issuances

CitesRR No. 02-2002RR No. 04-2002RR No. 06-2001RR No. 07-99RR No. 09-2001
Cited byRMC No. 06-2003RMC No. 28-2003RMC No. 51-2009RMO No. 04-2003RMO No. 05-2004RMO No. 12-2009RMO No. 23-2002RMO No. 30-2003RMO No. 42-2003RMO No. 54-2019RMO No. 56-2010RMO No. 8-2019RR No. 1-2005RR No. 12-2006RR No. 12-2010RR No. 14-2003RR No. 17-2005RR No. 29-2003RR No. 31-2003

Copies of BIR issuances are hosted here for reference. For the official version, check bir.gov.ph. Summaries by Tax Resources PH are not a substitute for the full text or professional advice.