Title
BIR Registration Procedures for VAT/Non-VAT Taxpayers
Law
Bir Revenue Memorandum Order No. 36-92
Decision Date
Sep 11, 1992
BIR Revenue Memorandum Order No. 36-92 streamlines the registration process for VAT and Non-VAT taxpayers by consolidating procedures, requiring ocular inspections, and replacing traditional registration numbers with Taxpayer Identification Numbers (TIN).
tax registration
vat taxpayers
administrative law

Purpose and policy of VAT/non-VAT registration

  • The Order consolidates in a single issuance the procedures for the registration of new VAT and Non-VAT taxpayers.
  • The procedures incorporate pertinent features and requirements under the New Payment Control System (NPCS).

Coverage: who must register

  • Registration through the prescribed application is for persons engaged in business who fall under the VAT/Non-VAT regime described in the Order.
  • Persons subject to 2% tax (with annual gross sale/receipt of P200,000 or below) must file the application form in triplicate.
  • VAT-exempt persons who did not opt to register as VAT taxpayers must file the application.
  • Persons subject to other percentage tax—such as common carriers and hotels—must file the application.
  • Persons subject to excise tax but not subject to VAT, such as specified sales/importations of petroleum products except lubricating oil processed gas, grease wax and petroleum, must file the application.
  • Persons exempt from VAT under Section 103 (other than those listed above in the Order) must file the application.

Application forms and required filing copies

  • Applications for VAT/Non-VAT registration must be filed using the revised BIR Form No. 2550-1 (VAT) or revised BIR Form No. 2551-1 (Non-VAT).
  • The application must be filed in three (3) copies; the triplicate is given to the taxpayer immediately after recording in the logbook.
  • The application is revised to exclude the claim stub portion being issued to taxpayers.
  • When a taxpayer has no Taxpayer Identification Number (TIN) yet, processing is done simultaneously with the processing of the TIN by Computer and Information Systems Service (CISS) (formerly RISSI).
  • Applications for VAT/Non-VAT registration shall not be approved without the TIN.

Core RDO procedure: intake, evaluation, approval

  • The Revenue District Office (RDO) must receive the three (3) copies of the duly accomplished application, together with the following documents:
    • Photocopy of DTI Certificate of Registration or Articles of Incorporation from SEC (for Corporation and Partnership),
    • Sketch of Business Address,
    • Mayor’s Permit and Municipal License,
    • Lease contract of place of business or other similar documents.
  • If the applicant is a transferee from another district, the RDO must instruct the applicant to file an Application for Transfer of Business to the RDO of the former place of business, and reference the related RMO on processing of transfers.
  • The RDO must thoroughly check the completeness and accuracy of all information on the application and the required documents.
  • The RDO must require the applicant to present the TIN card; if there is no TIN, the RDO must:
    • Require the applicant to fill up an application form for TIN and forward immediately to CISS under RMO No. 23-91 procedures,
    • Receive printed TIN ID Cards and/or pre-printed labels from CISS not later than fifteen (15) working days from the date of transmittal,
    • Release the TIN ID Card and/or pre-printed labels to the applicant.
  • The RDO must stamp “RECEIVED” and date the receipt on the lower right-hand corner space of BIR Form No. 2550-1/2551-1.
  • The RDO must record in separate logbooks the applications received and whether they are VAT or Non-VAT:
    • Applications received (VAT or Non-VAT) in Annex C,
    • Approved VAT applications in Annex D,
    • Approved Non-VAT applications in Annex E.
  • The RDO must issue the triplicate copy to the taxpayer and require the taxpayer to return not earlier than five (5) days from filing to verify approval/disapproval.

Ocular inspection, evaluation standards, and timelines

  • The RDO must determine whether the application is for VAT or Non-VAT.
  • For VAT registration, the RDO must evaluate the application in accordance with RMC 38-87 and must conduct an ocular inspection of the business premises.
  • For VAT registration, the ocular inspection report must be submitted within five (5) working days from the date of filing, as prescribed under RMO No. 3-90 (January 2, 1990).
  • For Non-VAT registration, the RDO must evaluate the application using the criteria stated in the Order, including:
    • Persons subject to other percentage tax under Title V of the Tax Code, including those subject to 2% tax under Section 112,
    • Persons subject to excise tax under Title VI of the Tax Code who are not subject to VAT,
    • VAT-exempt persons under Section 103(a), (b), (c) and (f) who did not opt to register as VAT taxpayers,
    • Persons exempt from VAT under Section 103 other than the VAT-exempt persons listed under the earlier VAT-exempt criterion,
    • Persons whose VAT registration was cancelled pursuant to Section 107(c) of the Tax Code.
  • For Non-VAT registration for taxpayers subject to 2% tax under Section 112, the RDO must conduct an ocular inspection and submit the report within five (5) working days from the date of filing.

Decision, disapproval/approval actions, and registration identifiers

  • The RDO must determine whether the application is approved or disapproved.
  • If disapproved, the RDO must:
    • Check the “DISAPPROVED” box,
    • Sign and indicate the date when processing was completed,
    • Inform the taxpayer that the registration application was disapproved and file the application for future reference.
  • If approved, the RDO must:
    • Determine whether the taxpayer filed on time; if not, the RDO must issue an Authority to Accept Payment (ATAP) under RMO 29-91 for payment to an Accredited Bank, then request the machine-validated ATAP and indicate the amount paid in the application form.
    • Check the “APPROVED” box, sign, and indicate the date when processing was completed.
    • Indicate in the approved application the TIN, the effective date of registration, and the Quarter Filing Code (applicable to VAT registration only).
    • Record the approved application in the corresponding logbook (Annex D for VAT; Annex E for Non-VAT).
    • Assign a VAT/Non-VAT Control Number on the upper right-hand corner of BIR Form 2550-1/2551-1 using sequential numbering in the logbook.

Registration certificate, stickers, and TIN-V/TIN-NV

  • Upon approval, the taxpayer must no longer be issued the VAT or Non-VAT registration number previously furnished by CISS; the TIN replaces the VAT/Non-VAT registration number.
  • The Registration Certificate and sticker must reflect TIN - V for VAT or TIN - NV for Non-VAT.
  • The RDO must prepare in duplicate a VAT/Non-VAT Registration Certificate using BIR Form Nos. 2550-2/2551-2P for the registrant’s principal office:
    • Original for the registrant,
    • Duplicate for the RDO.
  • The RDO must prepare in quadruplicate Registration Certificates for every branch (within or outside the district) using BIR Form Nos. 2550-2A and 2551-2B:
    • Original for the Registrant/Taxpayer (branch copy),
    • Duplicate for the Issuing District Office,
    • Triplicate for the Revenue District Office where the branch is located.
  • The RDO must prepare VAT/Non-VAT Registration Stickers for each head office and branch office and must have the stickers signed by the RDO.
  • The sticker must indicate the TIN followed by “V” or “NV” for VAT or Non-VAT.
  • The RDO must release to the taxpayer within five (5) days after filing of the application:
    • Original copies of the Registration Certificate/s,
    • VAT/Non-VAT Registration Sticker/s with TIN-V/NV printed on them.
  • The RDO must advise the taxpayer to post/exhibit the sticker/s at conspicuous points at the principal office and at each branch.
  • The RDO must file duplicate copies of:
    • The Application for VAT/Non-VAT Registration,
    • The VAT/Non-VAT Registration Certificate,
    • The VAT/Non-VAT Registration Certificate for branch issuance forms.
  • The RDO must forward the triplicate copy of BIR Form 2550-2A/2551-2B to the Revenue District Office of the place where the branch is located.
  • The RDO must batch and forward within five (5) days after the end of the month all original copies of approved BIR Form 2550-1 separately from approved BIR Form 2551-1, grouped in 50s or less, to CISS with a transmittal letter, and retain a duplicate copy of the transmittal letter for file.

CISS responsibilities: registers and masterfile updates

  • The Computer and Information Systems Service (CISS) must receive approved applications with the covering transmittal letter from RDOs.
  • For approved BIR Form 2550-1, CISS must:
    • Transcribe required data,
    • Generate two (2) copies each of the VAT Register by district—alphabetic (Annex F) and numeric (Annex G)—showing the data fields listed in the Order,
    • Forward the two VAT Register copies by district to the VAT Division within seven (7) working days after receipt from the RDO.
  • For approved BIR Form 2551-1, CISS must:
    • Transcribe required data,
    • Generate one (1) copy of the Non-VAT Register by district—alphabetic (Annex H) and numeric (Annex I)—showing the data fields listed in the Order,
    • Transmit the original list to each concerned RDO.
  • CISS must maintain a masterfile of all VAT and Non-VAT registrants.
  • Upon approval, all original copies of the approved applications must be forwarded to CISS to be used in updating the Master Files for VAT and Non-VAT Taxpayers.

VAT Division responsibilities: mailing VAT registers

  • The Value-Added Tax Division must receive from CISS:
    • Two (2) copies each of the VAT Register by district, alphabetic and numeric,
    • The corresponding diskettes from CISS.
  • The VAT Division must send/mail the original VAT Register by district, alphabetic and by TIN to the concerned RDOs within three (3) days after receipt from RISSI.
  • The VAT Division must file a duplicate of the VAT Register.

Filing timetable and filing location

  • The application form must be filed within ten (10) days from the date of commencement of business with the Revenue District Officer or any other authorized officer of the Bureau of Internal Revenue where the principal place of business is located.
  • For persons transferring their principal place of business to another Revenue District or whose VAT registration has been cancelled, the application must be filed within ten (10) days from the date of transfer or cancellation.
  • A person engaged in more than one line of business or with branches in different places must file only one application with the internal revenue officer where the principal place of business is located, indicating all lines of business and locations of branches in the application.

Penalty for failure to register

  • Taxpayers required to register their business under the provisions of Revenue Regulations No. 6-88 (as amended by Revenue Regulations No. 2-89) who fail to do so are subject, upon conviction, to:
    • A fine of not more than one thousand pesos, or
    • Imprisonment of not more than six months, or
    • Both.

Amendments and repealing clause

  • The Order amends RMO No. 49-88 (November 16, 1988) and RMO No. 3-89 (January 11, 1989).
  • The Order amends all other existing issuances or portions thereof that are inconsistent with the Order.

Effective date and adoption

  • The Order takes effect immediately upon approval.
  • It was adopted on 11 September 1992.

Form-guided guidelines for VAT/Non-VAT registration

  • The application guidance is tied to BIR Form No. 2551-1.
  • The form guidelines specify who must register, when to file, where to file, and the penalty consequence for failure to register under the referenced regulations.

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