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Tuesday, July 05, 2005
Remit July 1 E-VAT tax collection: BIR
TAX payers who passed on the Expanded Value Added Tax (E-VAT) to consumers prior to the suspension of the law’s implementation last July 1st are mandated to remit the corresponding taxes collected to the Bureau of Internal Revenue (BIR) on or before the deadline set on August 20, 2005.
Zamboanga Revenue District Officer (RDO) Cresencio Agad issued this advisory based on Revenue Circular 30-2005 concerning the deferment of Revenue Regulation (RR) 14-2004 issued by Internal Revenue Commissioner Guillermo Parayno last July 2.
The Supreme Court issued a Temporary Restraining Order (TRO) on the implementation of the E-VAT law or Republic Act 9337 in the afternoon of July 1st, barely a few hours after the law took effect.
Agad said the circular mandates that “VAT collected and for which VAT invoice/ receipts have been issued shall be declared in the monthly VAT declaration for the month pertaining thereto and remitted to the BIR on or before the deadline required for the filing thereof.”
Also, the circular states that “all non-VAT invoices/ receipts stamped as VAT invoice in compliance with RR 14-2005 shall be re-stamped with the following words on the face of the invoice with red ink: “NON-VAT NO INPUT ALLOWED”. Furthermore a line shall be drawn across the previously stamped words “VAT REGISTERED”.
“All those VAT tax payers who become exempt from VAT under RA 9337 will stamp their VAT invoice with the words: “NON-VAT REGISTERED AS OF _______” and shall draw a red line across the word NON,” the circular provides.
Agad said the BIR shall revert the VAT status of concerned taxpayers their registration status prior to July 1st, 2005 and make the necessary notification in view of the TRO.
The Revenue District Officer, meanwhile, lamented that the suspension in the implementation of the EVAT would mean lost income for the government that is currently suffering budget deficit. The BIR expects to collect some P20 billion for the first six months of the law’s implementation and over P100 billion for next year.
For the Zamboanga Revenue District Office, the estimated collection from the EVAT implementation is P10 million a month. “It’s a big amount lost especially for the district which is suffering from budget deficit due to various factors such as the decentralization of the remittance of withholding taxes for employees from the Department of Education, transfer of regional offices to Pagadian and the decentralization of the remittances of withholding taxes for employees of the Government Service Insurance System (GSIS),” Agad added. |
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