Title
BIR rules on VAT sales/purchases reports
Law
Bir Memorandum Order No. 4-2003
Decision Date
Feb 20, 2003
BIR Memorandum Order No. 4-2003 establishes guidelines for VAT taxpayers to electronically submit Quarterly Summary Lists of Sales and Purchases, enhancing tax compliance through the RELIEF System while imposing penalties for non-compliance.

Questions (BIR MEMORANDUM ORDER NO. 4-2003)

The RELIEF System supports third-party information and voluntary assessment by cross-referencing third-party SLSP data to detect underdeclaration of revenues and/or overdeclaration of costs/expenses for improved tax administration, audit, and management purposes.

A taxpayer submits Summary List of Sales when quarterly sales/receipts exceed P2,500,000; submits Summary List of Purchases when quarterly total purchases exceed P1,000,000. Only the relevant list(s) is/are submitted based on reaching the respective threshold.

Yes. Once the threshold is reached for sales or purchases, the VAT taxpayer must submit SLSP for the next three (3) succeeding quarters, regardless of whether those quarters exceed the threshold amounts.

Yes. The threshold determination includes taxable (net of VAT), zero-rated, and exempt transactions.

On or before the due date for filing of the VAT return, which is the 25th day of the month following the close of the taxable quarter (calendar or fiscal quarter).

SLSP must be submitted in electronic format using excel format, the taxpayer’s own extract program, or the BIR data entry module. If produced using excel or the taxpayer’s extract program, it must be validated using the validation module developed by the BIR.

If defective/partially defective diskette is submitted before the deadline, it must be replaced on or before the deadline (and it is treated as timely if properly replaced by the deadline). If defective/partially defective is submitted on the deadline, it is considered late.

The taxpayer must resubmit/replace the SLSP diskette within five (5) working days from the date of return/notification.

P1,000 per failure, not to exceed an aggregate amount of P25,000 for all such failures during a taxable year.

It constitutes a single act or omission for penalty purposes (i.e., multiple buyers/sellers do not multiply the act/omission for purposes of the penalty stated in the MO).

No. Even with administrative penalties and/or criminal cases/compromise, it does not relieve the taxpayer from the obligation to submit the required documents.

The Taxpayer Service Section of the RDO/LTDO/LTAD receives SLSP diskettes together with a duly filled-out Diskette Acknowledgement Report (ANNEX A-1) in two copies.

Failure to indicate the buyer’s TIN has no effect on the seller but may be a ground for audit of the records of the buyer or both the buyer and the seller.

The quarterly SLSP must contain consolidated monthly sales/purchases per customer/seller alphabetically arranged. The Quarterly Summary List of Importation must be chronologically arranged on a per individual transaction basis for each month of the taxable quarter.

Regular buyers/customers are those with whom there were at least six (6) transactions in the previous year or current year, regardless of amount per transaction. Casual buyers/customers are those with individual purchase/transaction amounting to at least P100,000 but not qualifying as regular customers.

After initial receipt and verification by the Taxpayer Service Section, the diskette is forwarded to the person in charge of scanning and checking the diskettes; this scanning includes virus checks and validation of data files (marked as GD, DV, DR, or DF).

Examples include: RDO/LTAD/LTDO must prepare certain reports on or before the 15th day of the second month after the end of each calendar quarter; the Regional Office/LTS must submit consolidated reports on the 20th day of the second month after the end of each calendar quarter; and AITEID must submit a consolidated quarterly compliance report to MANCOM not later than the 30th day of the second month after the SLSP deadline.


Analyze Cases Smarter, Faster
Jur helps you analyze cases smarter to comprehend faster, building context before diving into full texts. AI-powered analysis, always verify critical details.