Tax Notes: Train Law removes mandatory filing; payment of monthly VAT returns effective 2023

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

In other words, VAT-registered taxpayers are only required to file Quarterly VAT Returns (BIR Form 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 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 Jan. 31, 2023 (November 2022 to January 2023)

December 2022 – Required to file BIR Form 2550M not later than Jan. 20, 2023

January 2023 – Required to file BIR Form 2550Q not later than Feb. 27, 2023*

2. For the quarter ending Feb. 28, 2023 (December 2022 to February 2023)

December 2022 – Required to file BIR Form 2550M not later than Jan. 20, 2023

January 2023 – No longer required to file BIR Form 2550M

February 2023 – Required to file BIR Form 2550Q not later than March 27, 2023*

3. For the quarter ending March 31, 2023 (January 2023 to March 2023)

January 2023 – No longer required to file BIR Form 2550M

February 2023 – No longer required to file BIR Form 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