BIR gives transitory periods for VAT Returns quarterly filing, removes VAT declaration requirement

The Bureau of Internal Revenue (BIR) shares the updated transitory periods for the Value Added Tax (VAT) Returns quarterly filing starting January 1, 2023. The new timetable was announced in the bureau’s Revenue Memorandum Circular (RMC) 5-2023 released on January 13, 2023, and was made in accordance with the statements given in Section 37 of the Tax Reform for Acceleration and Inclusion (TRAIN) Law.

The RMC amends specific provisions of Section 114(A) of the Tax Code of 1997 and follows the implemented statement under Section 4-114-1(A) of Revenue Regulations (RR) No. 13-2018, which states that: “beginning January 1, 2023, the filling and payment required under this Subsection shall be done within twenty-five (25) days following the close of each taxable quarter”.

This means that VAT-registered taxpayers no longer need to file the Monthly VAT Declaration (BIR Form No. 2550M) for transactions starting January 1, 2023. However, they will now have to file the corresponding Quarterly VAT Return (BIR Form No. 2550Q) within twenty-five (25) days after the close of each taxable quarter once the transactions are finished.

Schedule for Transitory Provisions

The BIR then provided a timetable with the updated transitory periods to help taxpayers under fiscal period of accounting during the first implementation period:

Note: *- The 25^th day deadline falls on a Saturday