QuestionsQuestions (BIR REVENUE MEMORANDUM ORDER NO. 41-94)
To establish modified procedures for the registration and cancellation of BIR VAT, Non-VAT, Excise taxpayers, withholding agents, branches, and storage places/premises where inventories are kept, including the forms and guidelines to use.
Only one application: BIR Form No. 1556-A, which covers VAT, Non-VAT, Excise Taxpayer and Withholding Agent registration and is considered compliance with registration of business name as well.
The RDO having jurisdiction over the taxpayer’s principal place of business, branch, place of production, or storage place, as applicable.
The VAT activity is registered with the RDO where the main/head office is located; however, the Certificate of Registration is issued by the RDO where the branches are located.
Yes. Each branch must accomplish separate applications and a separate Certificate of Registration shall be issued for each branch.
P1,000 per separate/distinct establishment or place of business. If engaged in both VAT and Non-VAT activities, P1,000 is paid for each activity.
They are required to register but remain exempt from the payment of the annual registration fee, unless they are engaged in taxable activities.
The Certificate of Registration is issued only after an ocular inspection of the taxpayer’s business premises is conducted by a Revenue Officer and approved by the Revenue District Officer, in addition to other requirements.
Yes, warehouses/storage places where business transactions are conducted are considered a branch and are liable to the annual registration fee. If no business transactions are conducted thereat, they are still required to register but are exempt from the payment of the annual registration fee.
Applications must be filed before commencement of business/production/qualification as a withholding agent. For storage places/premises where inventory is kept, the application must be filed within 30 days from when the premises are used for storage.
A person who, in the course of trade or business, sells/renders services subject to VAT is required to register as VAT taxpayer if actual or expected gross sales/receipts exceed P500,000 for any 12-month period.
Examples include (any two): sellers whose taxable sales/gross receipts do not exceed P500,000 for any 12-month period; export sellers of agricultural/marine food products in original state; export sellers of fertilizers/seeds/seedlings/fingerlings and certain ingredients used to manufacture finished feeds; export sellers of non-food agricultural/marine/forest products by the primary producer or owner of the land.
Examples include: employers paying/expecting to pay employees compensation meeting the thresholds (P9,000/year or P750/month); non-employers paying income payments subject to expanded withholding tax/final taxes; government offices and local government units; and branch offices with disposal and custody of payments subject to withholding tax.
After receipt, ocular inspection is assigned within 24 hours; the ocular inspection report is submitted within 3 working days from assignment; the taxpayer is instructed to return after 5 working days from filing to check approval status.
Conduct immediate investigation to determine tax liabilities; subject the cancellation request to ocular inspection/verification; require surrender of the original Certificate of Registration for cancellation; and require submission of all unused official receipts/invoices and books of accounts for cancellation.
Existing VAT/Non-VAT/excise taxpayers, their places of production, withholding agents, storage places, branches, and certain non-stock non-profit organizations must re-register beginning May 30, 1994 until June 30, 1994, with a 60-day grace period without penalties.
They must submit: (1) an inventory list of all unused sales invoices and official receipts as of May 27, 1994; and (2) all unused sales invoices and official receipts for stamping “VAT INVOICE/RECEIPT” or “NON-VAT INVOICE/RECEIPT” as applicable (not later than June 30, 1994).