Tax Notes

TRAIN Law removes mandatory filing; payment of monthly VAT returns effective 2023

Contents

Under the Tax Reform for Acceleration and Inclusion (TRAIN) Law and Revenue Memorandum Circular (RMC) No. 5-2023, VAT-registered taxpayers are no longer required to file monthly VAT returns (BIR Form No. 2550M) pertaining to transactions that occurred beginning January 1, 2023.

In other words, VAT-registered taxpayers are only required to file Quarterly VAT Returns (BIR Form No. 2550Q) within 25 days from the close of each taxable quarter. The term “taxable quarter”, as clarified in Section 4-114-1(A) of Revenue Regulations No. 13-2018, shall refer to the same quarter as the income tax quarter of the taxpayer (i.e., calendar quarter or fiscal quarter).

To further illustrate:

  1. For the quarter ending January 31, 2023 (November 2022 to January 2023)
  • December 2022 – Required to file BIR Form No. 2550M not later than January 20, 2023
  • January 2023 – Required to file BIR Form No. 2550Q not later than February 27, 2023*
  1. For the quarter ending February 28, 2023 (December 2022 to February 2023)
  • December 2022 – Required to file BIR Form No. 2550M not later than January 20, 2023
  • January 2023 – No longer required to file BIR Form No. 2550M
  • February 2023 – Required to file BIR Form No. 2550Q not later than March 27, 2023*
  1. For the quarter ending March 31, 2023 (January 2023 to March 2023)
  • January 2023 – No longer required to file BIR Form No. 2550M
  • February 2023 – No longer required to file BIR Form No. 2550M
  • March 2023 – Required to file BIR Form No. 2550Q not later than April 25, 2023

              *The 25th day deadline falls on a Saturday.

Please be guided accordingly.

 

Source:

P&A Grant Thornton

Certified Public Accountants

P&A Grant Thornton is the Philippine member firm of Grant Thornton International Ltd.

 

As published in SunStar Cebu, dated 25 January 2023

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