Title
BIR Rules on VAT Submission and Invoices
Law
Bir Revenue Memorandum Circular No. 2-90
Decision Date
Jan 9, 1990
BIR Revenue Memorandum Circular No. 2-90 mandates VAT-registered taxpayers with quarterly gross sales exceeding P2,500,000 to submit a Summary List of Sales and Purchases along with four-copy invoices for specific transactions, ensuring compliance with VAT regulations.
A

Required Contents and Formats of the Summary Lists

  • Summary lists must include:
    • Names, addresses, and VAT numbers of suppliers.
    • Amount of purchases, exclusive of VAT, by supplier totals.
    • Names, addresses, and VAT numbers of buyers.
    • Amount of sales, exclusive of VAT, by buyer totals.
    • Customs import entry number, amount of importation, and VAT paid per entry.
  • Suggested forms for Submission: Summary List of Purchasers, Summary List of Sales, Summary List for Imports.
  • Submission can be made using printed forms or on magnetic tapes/diskettes adhering to prescribed formats.

Deadline for Submission

  • The summary list must be attached to the quarterly VAT return.
  • Submission period: Within 20 days after the end of each taxable quarter.

Parties Required to Issue Four-Copy VAT Invoices

  • Sellers of VAT-subject goods or services to government offices, agencies, and instrumentalities.
  • Sellers to persons subject to zero rate transactions.
  • Sales to entities exempted by special laws or international agreements but effectively subject to zero rate.
  • BOI-registered pioneer enterprises (partial or full VAT exemption).
  • Sellers to Export Processing Zone Authority enterprises.
  • Sellers of raw materials to specific BOI-registered exporters meeting export quotas.
  • BOI-registered subcontractors and contractors processing for exporters.
  • Other exempt entities under special laws or agreements.

Duties of Sellers and Buyers Concerning the Four-Copy VAT Invoices

  • Sellers provide 1st and 2nd copies to buyers, retaining 3rd and 4th copies.
  • Buyers:
    • Government offices submit 2nd copy to local Revenue District Office within 15 days post quarter.
    • Other zero-rated or exempt buyers attach 2nd copy to VAT returns and present original for refund or tax credit applications.
  • Sellers attach 3rd copy to VAT return to support zero-rated or exempt sales declarations.

Special Considerations and Clarifications

  • Zero-rated sales are considered taxable and require submission of summary lists, except export sales.
  • Minimum qualifying sales amount (PHP 2,500,000.00) refers only to VAT-taxable sales, excluding exempt sales.
  • Government agencies are not exempt from VAT; exemption depends on transaction nature and applicable laws.
  • Sellers to "last consumers" (non-resellers) are exempt from submitting sales summary lists but must submit purchase lists.
  • Photocopying for four-copy invoices allowed initially but strict enforcement begins April 1, 1990.
  • Summary lists must include purchases from non-VAT registered persons.

Enforcement and Publicity

  • Circular urges wide dissemination of these rules among concerned internal revenue officers and taxpayers.
  • Effective adoption date: September 24, 1990.

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