The Bureau of Internal Revenue (BIR) has issued a memorandum circular allowing the monthly filing and payment of value-added tax (VAT).

To recall, Republic Act 10963 or the TRAIN Law removed the monthly filing of VAT returns starting this year.

The law states that “beginning Jan. 1, 2023, the filing and payment required under this subsection shall be done within twenty-five (25) days following the close of each taxable quarter.”

The BIR, in a statement, however, said numerous requests are coming from taxpayers that they be allowed to file their VAT returns and pay the corresponding tax dues every month.

As a response, BIR Commissioner Romeo D. Lumagui Jr. issued Revenue Memorandum Circular (RMC) 52 – 2023 on May 10, giving VAT-registered taxpayers the option to file and pay VAT every month using BIR Form 2550M.

“Taxpayers have the option to file and pay their VAT on a monthly basis with no penalties. This would improve our goal of Excellent Taxpayer’s Service. My aim is not only a goal-oriented BIR, but also a service-oriented one. Again, I welcome all comments, suggestions, and feedback from our dear taxpayers. I want to create a conducive avenue for our compliant VAT taxpayers, and, of course, reduce their financial burden,” Lumagui said.

The circular states that no penalties would be imposed when a VAT-registered person opts to switch from the monthly filing of VAT returns to the quarterly filing, or vice versa.

The BIR, however, clarified that the filing of BIR Form 2550Q and payment of VAT must still be made within 25 days after the close of each taxable quarter.

For BIR Form 2550M, there shall be no prescribed deadline.

“The BIR is a fair agency. Taxpayers now have the option of monthly VAT filing and payment. But do not take advantage of our leniency by using fake transactions in your VAT returns. Our National Task Force – Run After Fake Transactions will audit your business. I will make sure that criminal charges will be pressed against you,” Lumagui said.PNA