RR No. 11-2003: Extends further 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 professionals and brokers

Summary

RR No. 11-2003 further extends the registration and compliance deadlines during the transitory period of the VAT on sale of services by professionals and brokers.

Key points

1. Registration deadline. Professionals and brokers register as VAT/non-VAT taxpayers without penalty not later than March 19, 2003. Their sale of services from January 1, 2003 is already subject to VAT, except for those with gross receipts of not more than P 550,000 for the preceding year (or expected for the current year, for new taxpayers) who did not opt for VAT.
2. Provisional receipts. Newly covered taxpayers may issue Provisional or Temporary Receipts pending VAT registration. Once replaced by VAT Official Receipts, the client or customer may claim input tax credit.
3. Unused receipts. Those changing from NON-VAT to VAT submit by March 19, 2003 an inventory of unused receipts as of December 31, 2002. Unused non-VAT receipts stamped VAT registered as of _____ may be used for VAT transactions until June 30, 2003.
4. Earlier services and input tax. Amounts due on services rendered on or before December 31, 2002 that become liable to VAT from January 1, 2003 are considered accrued as of December 31, 2002, subject to the Regulations. A presumptive input tax of 8% of value or actual VAT paid, whichever is higher, is allowed on goods, materials or supplies on hand on December 31, 2002, with an inventory filed with the RDO not later than March 19, 2003, and brokers may claim transitional input tax on unused input tax outstanding as of December 31, 1999.
5. January 2003 returns. The VAT Declaration or Monthly Percentage Tax Return for January 2003 is due not later than the deadline for the February 2003 returns. This is March 20, 2003 for regular/manual VAT/non-VAT taxfilers, and the staggered filing date for EFPS users.

Who is affected

• Professionals and brokers affected by the VAT on sale of services
• Taxpayers changing status from NON-VAT to VAT
• Brokers with unused input tax as of December 31, 1999

Deadlines and effectivity

• Registration and inventories: not later than March 19, 2003
• Stamped NON-VAT receipts usable until June 30, 2003
• January 2003 returns: March 20, 2003 for regular/manual filers

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