The Bureau of Internal Revenue (BIR) has allowed the monthly filing and payment of value added tax (VAT) after it was recently changed to a quarterly basis.
In a statement, the BIR said there are numerous requests coming from taxpayers that they be allowed to file their VAT returns and pay the corresponding tax dues monthly.
In January, BIR issued Revenue Memorandum Circular (RMC) No. 5-2023 in line with Section 37 of the TRAIN Law which states that VAT-registered taxpayers are no longer required to file the monthly VAT declaration for transactions starting January 1, 2023, but will instead file the quarterly VAT return within 25 days following the close of each taxable quarter when the transaction transpired.
However, amid the request from taxpayers, the BIR issued RMC No. 52-2023 last May 10 giving VAT-registered taxpayers the option to file and pay VAT on a monthly basis.
“Taxpayers have the option to file and pay their VAT on a monthly basis with no penalties,” BIR Commissioner Romeo Lumagui Jr. said.
“I want to create a conducive avenue for our compliant VAT taxpayers, and of course reduce their financial burden,” he added.
In the recent circular, it was emphasized that no penalties will be imposed when a VAT-registered person opts to switch from monthly filing of VAT returns to quarterly filing, or vice versa.
“The BIR is a fair agency. Taxpayers now have the option of monthly VAT filing and payment. But do not take advantage of our leniency by using fake transactions in your VAT returns. Our National Task Force-Run After Fake Transactions will audit your business. I will make sure that criminal charges will be pressed against you,” Lumagui warned tax dodgers.
