Summary
RR No. 3-2024 implements the changes made by RA No. 11976 (Ease of Paying Taxes Act) to Title IV on Value-Added Tax and Title V on Percentage Tax of the Tax Code of 1997, as amended.
Key points
- Accrual basis and Gross Sales. Sales of goods and services, including those to government and GOCCs, are recognized on an accrual basis. The terms gross selling price, gross value in money and gross receipts are now read as GROSS SALES.
- Invoice and billing terms. A single document covers sales of goods and services, so references to Sales/Commercial Invoices or Official Receipts now read INVOICE. References to receipts or payments as the basis for sales of service now read BILLING or BILLED.
- VAT-exempt threshold. Provisions stating the three million pesos (₱3,000,000.00) threshold are read as an amount adjusted to present value every three (3) years using the Consumer Price Index published by the Philippine Statistics Authority.
- Filing and payment. Returns are filed electronically, with manual filing allowed when electronic platforms are unavailable. Payment is made electronically or manually to Authorized Agent Banks and Revenue Collection Officers.
- Transition for earlier services. The Regulations apply to sales of services that happen upon effectivity. Output VAT on outstanding receivables for services rendered earlier is declared when collected, in the quarterly VAT return for the period of collection. No output tax credit is allowed under Section 4.110-9 for outstanding receivables from goods sold on account before effectivity.
Who is affected
- VAT and percentage taxpayers
Deadlines and effectivity
- Applies to sales of services that transpire upon effectivity of the Regulations
Summary by Tax Resources PH. It is not a substitute for the full text of the issuance or professional advice.
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.