Title
Supreme Court
Monthly VAT Payment Mandate - RA 7643
Law
Bir (dof) Revenue Regulation No. 5-93
Decision Date
Jan 22, 1993
Republic Act No. 7643 mandates the monthly payment of Value Added Tax (VAT) and amends existing regulations to streamline the filing process for VAT-registered individuals and businesses, ensuring compliance with updated tax obligations.

Law Summary

Filing of Returns and Payment of VAT

  • VAT taxpayers must file quarterly returns reporting gross sales/receipts within 20 days after each calendar quarter.
  • Monthly VAT payments must be made using prescribed monthly VAT declaration form within 25 days after each month.
  • Monthly declarations only required for first two months of each quarter.
  • Quarterly VAT payable is the output tax minus input tax, reduced by taxes paid in the first two months or excess input taxes allowed.

Short Period Return and Initial Registration

  • Persons ceasing business or whose registration is cancelled must file a final quarterly return and pay due VAT within 20 days from cessation or cancellation.
  • Newly registered VAT persons must file initial monthly VAT declarations and quarterly returns depending on the month of registration.
  • Detailed rules on filing monthly or quarterly returns depending on registration month and effective date.
  • Issued illustrations clarifying filing deadlines based on registration timing.
  • After initial filing, VAT taxpayers must file monthly declarations and quarterly returns per amended Section 23 rules.

Filing Locations and Consolidation

  • Monthly declarations and quarterly returns filed and paid at accredited banks in taxpayer’s revenue district.
  • If no accredited banks locally, filings and payments accepted by Revenue District Officer or authorized municipal treasurer.
  • Single consolidated VAT monthly declaration/quarterly return covers all branches and lines of business.
  • Declarations with no payment are filed directly with Revenue District Officer or municipal treasurer.

Summary Lists Requirement

  • Taxpayers with gross sales/receipts over ₱2,500,000 per quarter must attach summary lists of sales and purchases by customer/supplier, including names, addresses, VAT numbers, and total amounts.
  • Supermarkets, department stores, and similar retailers need only submit purchase lists.

Transitory Provisions

  • Specifies schedule for last quarterly returns of taxpayers previously grouped as A, B, and C under old regulations.
  • Establishes filing schedule for initial monthly declarations and quarterly returns for existing VAT taxpayers.
  • Abolishes grouping system; all VAT taxpayers now follow uniform filing requirements.

Penalties

  • Penal provisions under the NIRC and related regulations apply for infractions of these regulations.

Prescription Period

  • Assessment prescriptive period for VAT starts from the quarterly return due date or actual filing date, whichever is later.

Repealing Clause

  • Inconsistent existing rules, regulations, and issuances are modified or revoked to conform with these regulations.

Effectivity

  • Regulations effective starting February 1, 1993.

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