COMPLIANCE REQUIREMENTS

INVOICING REQUIREMENT, REFUND OF INPUT TAXES AND OTHERS

A. VAT Invoice and VAT Official Receipt
A VAT-registered person shall issue:
a. a VAT invoice for every sales, barter, or exchange of goods or properties; and
b. a VAT official receipt for every lease of goods or properties, and for every sale, barter or
exchange of services.
B. INVOICING REQUIREMENTS
The following information shall be indicated in VAT invoice or VAT official receipt:
a. A statement that the seller is VAT-registered person followed by TIN;
b. The total amount to be paid with the indication that such amount includes the amount:
1. Amount of tax shall be shown as a separate item in the invoice or receipt;
2. VAT-exempt sale, if the sale is exempt;
3. Zero-rated sale, if the sale is subject to zero percent VAT;
4. If mixed sales, breakdown of the sales price between its taxable, exempt and zero-rated
components and the calculation of the VAT on each portion. Separate invoices or receipts
may be issued for each type of sales.
c. The name, business style, if any, address and TIN of the customer, in case the sales amount to
P1,000,000 or more.

ACCOUNTING REQUIREMENT
- All persons subject to VAT shall maintain:
a. Regular accounting records
b. Subsidiary sales journal
c. Subsidiary purchase journal

FILING OF VAT RETURN

Required to file VAT returns
- Persons subject to VAT, gross sales/receipts exceed P1,919,500
- Person required to register as VAT taxpayer but failed to register
- Any person, whether or not made in business who import goods
WHERE TO FILE VAT?
1. Authorized Agent Bank (AAB) under jurisdiction of RDO where taxpayer (head office) is required to
register.
2. Revenue collection officer.
3. Duly authorized treasurer of the municipality or city.

DEADLINE OF FILING MONTHLY VAT RETURN

Manual 20 days from end of the month using BIR form 2550 filed in duplicate copies, and one copy for
taxpayer.
Tax payers involved in Electronic Filing and Payment System
- Group A 25 days following the end of the month

TAX 2 COMPLIANCE REQUIREMENT VALUE ADDED TAX;SOURCES: TEXTBOOKS BY BANGGAWAN, AMPONGAN AND DE VERA;
AND VARIOUS CPA REVIEW MATERIALS PREPARED BY: JULIUS A. VITAO,CPA INSTRUCTOR, TARLAC CHRISTIAN COLLEGE Page 1
 - Group B 24 days following the end of the month
- Group C 23 days following the end of the month
- Group D 22 days following the end of the month
- Group E 21 days following the end of the month
See group listing in the BIR website or business taxes books

DEADLINE OF QUARTERLY VAT RETURN

- Within 25 days from the end of the quarter (using BIR form 2550Q)

QUATERLY SUMMARY LISTS TO BE SUBMITTED BY ALL VAT TAXPAYER

1. Quarterly summary list of sales to regular buyers or customers, casual buyers or customers, and
output tax
2. Quarterly summary list of local purchases and input tax.
3. Quarterly summary list of input tax.

DEADLINE OF SUMMARY LIST OF SALES AND PURCHASES

- Before 25th day of the month following the close of the taxable quarter.
- Penalty for failure to submit: administrative penalty of P1,000 for each failure to file such
quarter list or information on the date prescribed not to exceed P25,000 for the taxable quarter.
BIR RELIEF SYSTEM (Reconciliation of Listing for Enforcement)
- Cross referencing of third party information from taxpayers quarterly summary list of sales and
purchases.
SUSPENSION OF BUSINESS OPERATION AND TEMPORARY CLOSURE
- CIR or authorized representative may suspend business operation if the business entity fails to
follow the requirements prescribed by the commission.
- If the sanction if just a temporary closure it should last for not less than 5 days.
CANCELLATION OF VAT REGISTRATION
- Effective the 1st day of the following month.
LIABILITY OF NON-VAT PERSON WHO ISSUES VAT INVOICE/RECEIPT
- Subject to usual percentage VAT, output VAT without benefit of input VAT plus 50% surcharge.

TAX 2 COMPLIANCE REQUIREMENT VALUE ADDED TAX;SOURCES: TEXTBOOKS BY BANGGAWAN, AMPONGAN AND DE VERA;
AND VARIOUS CPA REVIEW MATERIALS PREPARED BY: JULIUS A. VITAO,CPA INSTRUCTOR, TARLAC CHRISTIAN COLLEGE Page 2