Under the new regulations, VAT taxpayers must file quarterly return of the amount of his quarterly gross return or receipts within 25 days following the close of the taxable quarter using the amended Quarterly VAT return (BIR Form 2550 Q- April 2002 (ENCS version). The term taxable quarter would be the income tax quarter of the taxpayer, i.e., calendar quarter or fiscal quarter.
The shifting from a calendar quarter VAT return to-a-fiscal VAT return starts in the fiscal quarter ending July 31, 2002 which is due for filing on or before Aug. 25, 2002.
Amounts collected in the monthly VAT declaration for the first two months of the quarter will still be included in the quarterly VAT return to reflect the cumulative figures for the taxable quarter. Payments in the monthly VAT declarations will, however, be credited in the quarterly VAT return to arrive at the net VAT payable as of end of the quarter.
In the case of monthly VAT payment, the VAT declaration should be done within 20 days after the end of each month. However, with respect to taxpayers who availed of the electronic filing and payment system (EFPS), the deadline for payment will be five days later then the said deadline.
The VAT payable for each taxable quarter will be reduced by the retail amount of taxes previously paidfor the immediately preceding two months, and the advance payments creditable VAT withheld by the payors for the three months of the quarter.
In the case of persons retiring from business or whose VAT registration has been cancelled, they must file final quarterly return within 25 days from the end of the month when the business ceases to operate or when the VAT registration has been officially cancelled, provided, however, that subsequent monthly declarations are still required to be filed if the results of the winding up of the affairs of the taxpayer disclose taxable transactions.
In the case of quarterly VAT return and the monthly VAT declaration where no payment is involved, the same must be filed with the revenue district office (RDO), large taxpayer district office (LTDO), large taxpayers assistance division (LTAD), collection agent, duly authorized municipal or city treasurer where the taxpayer is registered.
The regulation also provide for the withholding of creditable VAT of three percent of the gross sales and six percent on gross receipts for services rendered by contractors, provided, however, that in case of government public works contractors, the withholding tax rate shall be 8.5.
In the case of withholding of final VAT, the government or any of its political subdivisions including the GOCCs, as well as private corporations, individuals, estates and trust, large or non-large taxpayers, must withheld 10 percent with respect to the lease or use of properties or property rights owned by non-residents services rendered to local companies with respect to reinsurance premiums payable to non-residents and other services rendered in the Philippines by non residents.
In emitting the VAT withheld, whether creditable or final,the withholding agent must use BIR Form 1609. The VAT withheld and paid for the non resident recipient, which VAT is passed-on to the resident withholding agent by ten resident recipient of the income, may be claimed as input tax by said VAT registered withholding agent upon filing his VAT return, subject to the rule on allocation of input taxable sales, veto rated sales and exempt sales.
If the resident withholding agent is a new Vat taxpayer, said passed-on VAT by the non-resident recipient of the income as evidenced by the duty filed BIR Form 1600, shall form part of the cost purchased services, which maybe meated either as an asset or expense, whichever is applicable, of the resident withholding agent.
Perscos required to submit summary list of sales purchases are more liable for VAT with quarterly total sales receipts (not of VAT) exceeding P2.5 million. Persons required to submit summary fists of purchases are those with quarterly total purchases (net of VAT) exceeding P1,000,000.
The quarterly summary list must contain the monthly total sales generated from regular buyers regardless of the amount of sale per buyer, as well as from casual buyers with individual sales amounting to P100,000 or more. The quarterly summary list of sales to regular buyers or custoemrs andcasual buyers and output tax must reflect the BIR-registered name of the buyer, the TIN of the buyer, exempt sales, zero-rated sales, sales subject to VAT (exclusive of VAT) and output tax (VAT on sales).