AS the state aims to collect more than P120 billion in value-added tax (VAT) this April, the main tax collecting agency’s top official remained firm in the deadline for the filing and payment of the VAT.
Internal Revenue Commissioner Romeo D. Lumagui Jr. told the BusinessMirror, “[There will be] no extension on the [deadline],” on April 25.
VAT is a sales tax on consumption imposed on the sale, barter, exchange, or lease of goods and services in the Philippines and on the importation of goods into the country.
VAT is an indirect tax, which may be shifted or passed on to the buyer, transferee, or lessee of goods, properties, or services, according to the BIR.
Those required to file for VAT returns include any person or business entity registered for VAT purposes with annual gross sales or receipts exceeding P3 million.
A person who is required to register as a VAT taxpayer but failed to register or any person, whether or not made in the course of his trade or business, who imports goods, is also required to file for VAT returns with the BIR.
The Tax Code now mandates filing VAT returns and paying the corresponding VAT liabilities quarterly, but VAT-registered persons may still continue to file and pay the VAT monthly and use BIR Form No. 2550M.
The procedures and guidelines set in Revenue Regulations Nos. 16-2005 and 6-2014, Revenue Memorandum Circular No. 68-2005 and other related revenue issuances, regarding the use of BIR Form No. 2550M shall continue to apply, the BIR noted.
No penalties will be imposed on a VAT-registered person who chooses to switch from filing the VAT return and paying tax every month using BIR Form No. 2550M, to quarterly filing using BIR Form No. 2550Q, or vice versa.
However, the quarterly filing of BIR Form No. 2550Q and payment of VAT must be made within 25 days following the close of each taxable quarter.
The value-added tax rate on the sale of goods and properties, sale of services and use or lease of properties, and importation of goods is set at 12 percent of the gross selling price or value in money. Some transactions, however, are exempted from VAT.
The BIR targets to collect a total of P405.948 billion in taxes this April. Of the total amount, P124.642 billion will come from the collection of VAT. For 2024, the BIR aims to collect a total of P599.253 billion in VAT.
The Bureau has also collected taxes on net income and profit this month, which is targeted at P198.803 billion.
The agency’s total collection goal is set at P3.055 trillion for 2024, with the bulk, or P2.967 trillion, coming from BIR operations, such as taxes on net income and profits and value-added tax (VAT), and P88.014 billion from non-BIR operations.