Philippines: Optional filing and payment of monthly VAT returns for VAT-registered persons

Revenue Memorandum Circular provides for optional filing and payment of monthly VAT returns for VAT-registered persons

Optional filing and payment of monthly VAT returns for VAT-registered persons

The Bureau of Internal Revenue (BIR) issued Revenue Memorandum Circular (RMC) No. 52-2023 [PDF 129 KB] (dated 10 May 2023), which provides for the optional filing and payment of monthly value added tax (VAT) returns (BIR Form No. 2550M) for VAT-registered persons.

Key points in the circular include:

  • VAT-registered persons may continue to file and pay the VAT on a monthly basis and still use BIR Form No. 2550M.
  • Procedures and guidelines set forth in Revenue Regulations No. 16-2005, 6-2014, RMC No. 68-2005, and other related revenue issuances regarding the use of BIR Form No. 2550M will continue to apply.
  • If the VAT-registered person opts to switch from filing the VAT return and paying tax on a monthly basis using BIR Form No. 2550M to quarterly filing using BIR Form No. 2550Q or vice versa, no penalties will arise.
  • Filing of the BIR Form No. 2550Q and payment of VAT must be made within the period provided under the tax code that is within 25 days following close of each taxable quarter.
  • There is no prescribed deadline for the monthly filing of the BIR Form No. 2550M.

Read a May 2023 report prepared by the KPMG member firm in the Philippines


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