BIR gives transitory periods for VAT Returns quarterly filing, removes VAT declaration requirement
The Bureau of Internal Revenue announces updated transitory periods for VAT Returns following the amendments from the TRAIN law.
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:
Quarter Ending | Transactions Covering the month of: | Filing of 2550Q for the Quarter Ending | ||||
December 2022 | January 2023 | February 2023 | December 2022 | January 2023 | February 2023 | |
January 31, 2023 | Required to file 2550M not later than January 20, 2023 | Not Applicable | Not Required to File 2550M | Not Applicable | Required to file 2550Q not later than February 27, 2023* | Not Applicable |
February 28, 2023 | Required to file 2550M not later than January 20, 2023 | Not Required to File 2550M | Not Applicable | Not Applicable | Not Applicable | Required to file 2550Q not later than March 27, 2023* |
March 31, 2023 | Not Applicable | Not Required to File 2550M | Not Required to File 2550M | Required to file 2550Q not later than January 25, 2023 | Not Applicable | Not Applicable |
Note: *- The 25th day deadline falls on a Saturday