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Filing of monthly VAT Returns no longer required

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Effective January 1, 2023, VAT-registered taxpayers are no longer required to file the Monthly Value-Added Tax Declaration (BIR Form No. 2550M).

This was contained in Revenue Memorandum Circular (RMC) No. 5-2023 issued by the Bureau of Internal Revenue (BIR) on January 13, 2023, which provides the Transitory Provisions for the implementation of the quarterly filing of VAT Returns starting on January 1, 2023 pursuant to Section 37 of Republic Act No. 10963 (TRAIN Law), amending certain provisions of Section 114(A) of the Tax Code of 1997, as amended, and as implemented under Section 4-114-1(A) of Revenue Regulations (RR) No. 13-2018.

With the said provision, VAT-registered taxpayers will now file their corresponding Quarterly Value-Added Tax Return (BIR Form No. 2550Q) within twenty-five (25) days following the close of each taxable quarter when the transaction transpired.

To avoid confusion during the initial implementation, particularly for taxpayers that are under fiscal period of accounting, the following Transitory Provisions are provided in the said RMC:

 

Quarter

Ending

Transactions Covering the Month ofFiling of 2550Q for the Quarter Ending
 

December 2022

 

January 2023

 

February 2023

 

December 2022

 

January 2023

 

February 2023

 

January 31, 2023

Required to file 2550M not later than January 20, 2023Not applicableNot Required to File 2550MNot applicableRequired to file 2550Q not later than February 27, 2023*Not applicable
 

February 28, 2023

Required to file 2550M not later than January 20, 2023Not Required to File 2550MNot applicableNot applicableNot applicableRequired to file 2550Q not later than March 27, 2023*
 

March 31, 2023

Not applicableNot Required to File 2550MNot Required to File 2550MRequired to file 2550Q not later than January 25, 2023Not applicableNot applicable

Note: * – Note that the 25th day deadline falls on a Saturday

With the quarterly filing of VAT Returns, we expect VAT taxpayers to be fully compliant with their duties and responsibilities to file their tax returns and pay the correct taxes on time”, said Commissioner Romeo D. Lumagui, Jr.

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