DESCRIPTION

Value-Added Tax is a form of sales tax. It is a tax on consumption levied on the sale,
barter, exchange or lease of goods or properties and services in the Philippines and on
importation of goods into the Philippines. It is an indirect tax, which may be shifted or
passed on to the buyer, transferee or lessee of goods, properties or services.
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WHO ARE REQUIRED TO FILE VAT RETURNS

Any person or entity who, in the course of his trade or business, sells,
barters, exchanges, leases goods or properties and renders services
subject to VAT, if the aggregate amount of actual gross sales or
receipts exceed One Million Nine Hundred Nineteen Thousand Five
Hundred Pesos (P1,919,500.00).

A person required to register as VAT taxpayer but failed to register

Any person, whether or not made in the course of his trade or

business, who imports goods
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MONTHLY VAT DECLARATIONS

Tax Form
BIR Form 2550M - Monthly Value-Added Tax Declaration (February 2007 ENCS)
Documentary Requirements
1. Duly issued Certificate of Creditable VAT Withheld at Source (BIR Form No. 2307), if
applicable
2. Summary Alphalist of Withholding Agents of Income Payments Subjected to
Withholding Tax At Source (SAWT), if applicable

3. Duly approved Tax Debit Memo, if applicable

4. Duly approved Tax Credit Certificate, if applicable
5. Authorization letter, if return is filed by authorized representative.
Procedures
1. Fill-up BIR Form No. 2550M in triplicate copies (two copies for the BIR and one copy
for the taxpayer)
2. If there is payment:

File the Monthly VAT declaration, together with the required

attachments, and pay the VAT due thereon with
any Authorized Agent Bank (AAB) under the jurisdiction of
theRevenue District Office (RDO)/Large Taxpayers District
Office (LTDO) where the taxpayer (head office of the business
establishment) is registered or required to be registered.

The taxpayer must accomplish and submit BIR-prescribed

deposit slip, which the bank teller shall machine validate as
evidence that payment was received by the AAB. The AAB
receiving the tax return shall stamp mark the word
"Received" on the return and machine validate the return as
proof of filing the return and payment of the tax.

In places where there are no duly accredited agent banks, file

the Monthly VAT declaration, together with the required
attachments and pay the VAT due with the Revenue
Collection Officer (RCO) or duly authorized Treasurer of the
Municipality where such taxpayer (head office of the business
establishment) is registered or required to be registered.

The RCO or duly authorized Municipal/City Treasurer shall

issue a Revenue Official Receipt upon payment of the tax.

3. If there is no payment:

File the Monthly VAT Declaration, together with the required

attachments with the RDO/LTDO/Large Taxpayers Assistance
Division, Collection Agent or duly authorized Municipal/ City
Treasurer of Municipality/City where the taxpayer (head office
of the business establishment) is registered or required to be
registered.

Deadline

Manual Filing

Not later than the 20th day following the end of each month

Through Electronic Filing and Payment System (eFPS):

Business Industry

Group A
Insurance and Pension Funding
Activities Auxiliary to Financial Intermediation
Construction
Water Transport
Hotels and Restaurants
Land Transport
Group B
Manufacture and Repair of Furniture
Manufacture of Basic Metals
Manufacture of Chemicals and Chemical Products
Manufacture of Coke, Refined Petroleum & Fuel Products
Manufacture of Electrical Machinery & Apparatus N.E.C.
Manufacture of Fabricated Metal Products
Manufacture of Food, Products & Beverages
Manufacture of Machinery & Equipment NEC
Manufacture of Medical, Precision, Optical Instruments
Manufacture of Motor Vehicles, Trailer & Semi-Trailers
Manufacture of Office, Accounting & Computing Machinery
Manufacture of Other Non-Metallic Mineral Products
Manufacture of Other Transport Equipment
Manufacture of Other Wearing Apparel
Manufacture of Paper and Paper Products
Manufacture of Radio, TV & Communication Equipment/ Apparatus
Manufacture of Rubber & Plastic Products
Manufacture of Textiles
Manufacture of Tobacco Products
Manufacture of Wood & Wood Products
Manufacturing N.E.C.

Period for

25 days following the end

24 days following the end

Metallic Ore Mining

Non-Metallic Mining & Quarrying
Group C
Retail Sale
Wholesale Trade and Commission Trade
Sale, Maintenance, Repair of Motor Vehicle, Sale of Automotive Fuel
Collection, Purification and Distribution of Water
Computer and Related Activities
Real Estate Activities
Group D
Air Transport
Electricity, Gas, Steam & Hot Water Supply
Postal & Telecommunications
Publishing, Printing & Reproduction of Recorded Media
Recreational, Cultural & Sporting Activities
Recycling
Renting of Goods & Equipment
Supporting & Auxiliary Transport Services
Group E
Activities of Membership Organizations, Inc.
Health and Social Work
Public Admin & Defense Compulsory Social Security
Research and Development
Agricultural, Hunting, and Forestry
Farming of Animals
Fishing
Other Service Activities
Miscellaneous Business Activities
Unclassified

23 days following the end

22 days following the end

21 days following the end

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QUARTERLY VALUE-ADDED TAX RETURN

Tax Form
BIR Form No. 2550Q - Quarterly Value-Added Tax Return (February 2007 ENCS)
Attachments to the Return
1. Duly issued Certificate of Creditable VAT Withheld at Source (BIR Form 2307), if
applicable

2. Summary Alphalist of Withholding Agents of Income Payments Subjected to

Withholding Tax At Source (SAWT), if applicable
3. Duly approved Tax Debit Memo, if applicable
4. Duly approved Tax Credit Certificate, if applicable
5. Previously filed return and proof of payment, for amended return
6. Authorization letter, if return is filed by authorized representative
Procedures
1. Fill-up BIR Form 2550Q in triplicate copies (two copies for the BIR and one copy for
the taxpayer)
2. If there is payment:

File the Quarterly VAT Return, together with the required

attachments, and pay the VAT due thereon with any AAB
under the jurisdiction of the RDO/LTDO where the taxpayer
(head office of the business establishment) is registered or
required to be registered.

The taxpayer must accomplish and submit BIR- prescribed

deposit slip, which the bank teller shall machine validate as
evidence that payment was received by the AAB. The AAB
receiving the tax return shall stamp mark the word
"Received" on the return and machine validate that return as
proof of filing the return and payment of the tax.

In places where there are no duly accredited agent banks, file

the Quarterly VAT Return, together with the required
attachments and pay the VAT due with the Revenue
Collection Officer (RCO) or duly authorized Treasurer of the
Municipality where such taxpayer (head office of the business
establishment) is registered or required to be registered.

The RCO or duly authorized Municipal/City Treasurer shall issue a Revenue Official
Receipt upon payment of the tax.

3. If there is no payment:

File the Quarterly VAT Return, together with the required

attachments with the RDO/LTDO/Large Taxpayers Assistance
Division, Collection Agent or duly authorized Municipal/City
Treasurer of Municipality/City where the taxpayer (head office
of the business establishment) is registered or required to be
registered.

Reminders:
1. Only one consolidated Monthly VAT Declaration/Quarterly VAT Return shall be filed
covering the results of operation of the head office as well as the branches for all lines of
business subject to VAT.
2. The Quarterly List of Sales and Purchases shall be submitted in magnetic form using
3.5-inch floppy diskette following the format provided under Section 4.114-3(g) of RR
No. 16-2005.
3. The Quarterly List of Sales and Purchases shall be submitted through electronic filing
facility for taxpayers under the jurisdiction of the Large Taxpayers Service (LTS) and
those enrolled under the eFPS.
Deadline
Within twenty five (25) days following the close of taxable quarter.
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TAX RATES

On sale of goods and properties - twelve percent (12%) of the gross selling price
or gross value in money of the goods or properties sold, bartered or exchanged
On sale of services and use or lease of properties - twelve percent (12%) of
gross receipts derived from the sale or exchange of services, including the use or
lease of properties
On importation of goods - twelve percent (12%) based on the total value used by
the Bureau of Customs in determining tariff and customs duties, plus customs

duties, excise taxes, if any, and other charges, such as tax to be paid by the
importer prior to the release of such goods from customs custody; provided, that
where the customs duties are determined on the basis of quantity or volume of
the goods, the VAT shall be based on the landed cost plus excise taxes, if any.
On export sales and other zero-rated sales - 0%