Law Summary
Scope and Highlights of the Modified Procedure
- RDO (Revenue District Office) shall inspect business premises as part of evaluation for VAT and some Non-VAT registrations.
- Revised application forms (BIR Forms 2550-1/2551-1) to be filed in triplicate; claim stub portion removed.
- Separate logbooks maintained for applications received and approved, categorized by VAT and Non-VAT.
- TIN mandatory for registration approval; simultaneous processing if applicant lacks TIN.
- TIN replaces previous VAT/Non-VAT registration numbers; certificates and stickers will reflect TIN-V or TIN-NV.
- Approved applications forwarded to Computer and Information Systems Service (CISS) for master file updates.
Registration Procedures at Revenue District Office (RDO)
- Receive triplicate application forms with required documents such as DTI Certificate, SEC Articles, business address sketch, Mayor's Permit, and lease contracts.
- Applicants transferring business districts must file transfer applications.
- Check application completeness and verify TIN; assist in TIN application if absent.
- Stamp and log each application, issue a triplicate copy to the applicant.
- Allow applicant to verify approval status after five days.
- Evaluate applications according to VAT or Non-VAT classification, including ocular inspection within 5 days.
- Disapprove incomplete or inaccurate applications and notify applicants.
- Approve applications meeting criteria; issue Authority to Accept Payment if filed late.
- Assign control numbers, prepare registration certificates and stickers, distribute accordingly.
- Advise posting of sticker at business locations.
- File duplicates and forward originals and triplicates to appropriate offices, including monthly batch forwarding to CISS.
Procedures at Computer and Information Systems Service (CISS)
- Receive approved applications with transmittals from RDO.
- Transcribe data to generate VAT and Non-VAT registers by district (alphabetic and numeric).
- Send copies of registers to revenue offices and VAT Division.
- Maintain master files for VAT and Non-VAT registrants.
Value-Added Tax Division Duties
- Receive VAT Registers and diskettes from CISS.
- Distribute original registers to RDOs within 3 days while filing duplicates.
Legal and Administrative Provisions
- Order amends earlier revenue memorandum orders inconsistent with this issuance.
- Order effective immediately upon approval.
Registration Guidelines and Requirements
- Persons subject to 2% tax, those exempt from VAT who did not opt for VAT registration, persons subject to other percentage tax, excise tax but not VAT, and certain VAT-exempt persons must register using prescribed forms.
- Applications to be filed within 10 days from business commencement or transfer.
- Single application covers multiple business lines and branches.
Penalties for Non-Compliance
- Failure to register as required may result in fines up to Php 1,000, imprisonment not exceeding 6 months, or both upon conviction.