Objectives of the Memorandum Order
- Ensure timely monitoring and processing of VAT taxpayers’ SLSP data.
- Define roles of offices handling SLSP processing.
- Provide accurate reports for audit and tax management.
- Support correct VAT credit/refund processing.
- Enforce penalties and pursue criminal case filings for non-compliance.
Definition of Key Terms
- Magnetic Form: 3.5-inch floppy diskette for data submission.
- "Good" Diskette: Virus-free, readable, format-compliant diskette successfully uploaded.
- "Defective" Diskette: Infected, unreadable, or improperly formatted files.
- Regular Buyers/Customers: Those with at least six transactions in the previous or current year.
- Casual Buyers/Customers: Single transactions of ₱100,000 or more but not regular buyers.
- Taxable Quarter: Matches the taxpayer’s income tax quarter.
- Secure Area: Environment that preserves and protects diskettes.
- File: One transaction type (sales, purchases, importation) per month.
Policies on SLSP Submission
- SLSP must be submitted quarterly in magnetic form; hard copies are unnecessary.
- VAT taxpayers with quarterly sales above ₱2.5 million must submit Summary List of Sales.
- VAT taxpayers with quarterly purchases above ₱1 million must submit Summary List of Purchases.
- Thresholds include taxable, zero-rated, and exempt transactions.
- Once threshold met, submission is required for the next three quarters regardless of amount.
- Submission deadline: 25th of the month after the taxable quarter ends, via prescribed electronic format.
- SLSP includes detailed monthly totals, with buyers alphabetically arranged and imports chronologically.
- Only "good" diskettes are accepted; defective ones must be replaced within five working days.
- Failure to submit or replace SLSP in required form triggers penalties and audits.
- One file counts per transaction type per month; penalties apply for failure to file, not exceeding ₱25,000 annually.
- Criminal penalties apply for willful non-compliance regardless of administrative penalties.
- All reports are transmitted electronically; unauthorized disclosure of data results in sanctions.
Procedures and Responsibilities A. RDO/LTDO/LTAD Duties
- Receive and verify SLSP diskettes alongside Diskette Acknowledgement Reports.
- Impose penalties for late submission.
- Assign control numbers with a defined alphanumeric format.
- Check diskettes for viruses and file validity; mark condition on labels.
- Return defective diskettes for correction within five working days.
- Transmit SLSP data daily to RDC/ISOS-DC via built-in File Transfer Protocol.
- Maintain Diskette Register for tracking submissions.
- Prepare and issue notices for non-compliance, escalating to subpoenas and criminal prosecution if recurrent.
- Submit detailed quarterly compliance and transmission reports to concerned offices.
Procedures and Responsibilities B. Document Processing Section
- Maintain updated master lists of VAT taxpayers.
- Quarterly update lists who are required to submit SLSP.
- Safekeeping of good diskettes and acknowledgment reports in secured areas.
Procedures and Responsibilities C. Regional Office/Large Taxpayers Service
- Receive and monitor submission compliance reports from RDOs.
- Consolidate reports and submit to the Audit Information, Tax Exemption and Incentives Division (AITEID).
Procedures and Responsibilities D. Revenue Data Center (RDC)/ISOS-DC
- Receive SLSP data electronically daily.
- Maintain data backups with retention from 3 to 10 years.
- Prepare quarterly summaries and reconcile with RDO submissions.
- Highlight discrepancies through exception reports.
Procedures and Responsibilities E. Systems Operations Division (SOD)
- Upload data to Data Warehouse daily.
- Identify and report unsuccessful uploads for retransmission.
- Prepare and distribute quarterly summaries for reconciliation.
Procedures and Responsibilities F. Audit Information, Tax Exemption, and Incentives Division (AITEID)
- Monitor overall compliance of VAT taxpayers and offices.
- Receive compliance and transmission reports.
- Refer discrepancies for resolution.
- Submit consolidated quarterly compliance reports to management.
Penalties and Enforcement
- Administrative penalty of ₱1,000 per failure to file or supply information, capped at ₱25,000 per taxable year.
- Willful failure to maintain records or supply correct information subject to criminal sanctions under the Tax Code.
- Penalties and compromises do not exempt taxpayer from submission obligations.
- Non-compliance triggers audits and legal consequences.
Confidentiality and Security
- Data submitted through RELIEF system must be safeguarded.
- Unauthorized access or disclosure by officials or employees results in administrative and possibly criminal sanctions.
Repealing Provisions and Effectivity
- The Memorandum Order supersedes all inconsistent prior issuances.
- It took effect immediately upon issuance on February 20, 2003.