TRO delays expanded VAT implementation

The Bureau of Internal Revenue (BIR) is directed to halt all processes involving the registration of taxpayers and the collection of the expanded VAT as mandated by RA 7716.
This includes postponing any new VAT registrations and expanded VAT collections.
The suspension applies uniformly and is strictly enforced until official revocation of the TRO.

The BIR shall maintain ongoing VAT education and information campaigns to inform taxpayers about VAT regulations and compliance.
These campaigns aim to prepare taxpayers for eventual implementation once the TRO is lifted.

Identification of weak and strong points in current VAT collections from existing VAT and non-VAT taxpayers.
Focus on areas where substantial VAT revenues can be collected and identification of leakages in VAT revenue streams.
Continuous and intensified tax mapping operations to expand the tax base.
Maximizing collection of expanded withholding taxes to augment government revenue.
Enhanced third-party information-gathering for improved tax assessment and enforcement.

Ongoing registration of VAT and non-VAT taxpayers shall be conducted pursuant to the old VAT law (Executive Order 273) for new taxpayers.
Updating and monitoring specific sectors or industries where VAT collection has declined by revising the masterlist of VAT taxpayers.

Strict compliance with the memorandum order and the directives contained therein is mandated.
BIR officials and personnel are enjoined to adhere to all guidelines and timelines until further notice.

The memorandum order was adopted on September 23, 1994, by Commissioner of Internal Revenue Liwayway Vinzons-Chato.
It reflects the BIR’s official stance on the deferment of the expanded VAT implementation under RA 7716 due to the Supreme Court TRO.