Question & AnswerQ&A (BIR REVENUE REGULATION NO. 5-93)
The main purpose of BIR Revenue Regulation No. 5-93 is to implement Republic Act No. 7643, which requires the monthly payment of Value Added Tax (VAT) and amends Section 110 of the National Internal Revenue Code (NIRC) accordingly.
Every person liable to pay the value added tax is required to file VAT returns.
Every person liable to pay VAT shall file a quarterly return of their gross sales or receipts within twenty (20) days following the close of each calendar quarter.
VAT payments must be made monthly based on the taxable sales/receipts for the month, within twenty-five (25) days after the end of each month, using the monthly VAT declaration form.
The monthly VAT declarations must be accomplished only for the first two months of each calendar quarter.
The VAT payable for each calendar quarter is computed by subtracting the input tax from the output tax, then reducing this amount by the total tax(es) previously paid for the first two months of the quarter and/or the sum of excess input taxes allowed under Title IV of the NIRC.
A person who retires from business or whose registration is cancelled must file a final quarterly return and pay the tax due within twenty (20) days from the date of cessation or cancellation. The final return may cover less than three months.
A newly registered person under Section 18(a) must file an initial monthly VAT declaration and pay the due tax within twenty-five (25) days after the end of the month of registration and file the initial quarterly return by the 20th day of the month following the end of that calendar quarter, except when registration falls in the third month of the quarter, where no monthly declaration is required.
They are filed with and paid at a bank accredited by the Commissioner located in the revenue district where the person is registered. If no accredited bank exists within the municipality or city, the return and payments are filed with the Revenue District Officer, Collection Agent or duly authorized Treasurer of the Municipality where the taxpayer has their principal place of business.
Every person with gross sales and receipts exceeding P2,500,000.00 per quarter must attach summary lists of sales and purchases with details including the name, address, VAT number of customers/buyers and suppliers/sellers, along with sales and purchases totals. Operators of supermarkets, department stores, and other sellers to the last consumer may submit only the list of purchases.
The penalties provided under the National Internal Revenue Code (NIRC) and its implementing regulations for violations of VAT provisions shall apply.
The prescriptive period for VAT assessment is counted from the due date of filing the quarterly return or the actual filing date, whichever is later.
These regulations took effect beginning February 1, 1993.
All existing rules, regulations, and issuances inconsistent with these regulations are modified and/or revoked accordingly.