Value-Added Tax is a form of sales

and indirect tax. It is a tax on

consumption levied on the sale, barter,
exchange or lease of goods or
properties and services in the
Philippines and on importation of goods
into the Philippines.
2
 Any person or entity who, in the course of his
trade or business, sells, barters, exchanges,
leases goods or properties and renders services
subject to VAT, if the amount of actual gross
sales or receipts exceed P1,919,500.
 A person required to register as VAT taxpayer.
 Any person, whether or not made in the course
of his trade or business, who imports goods.

3
 On sale of goods and properties/ On sale of services and
use or lease of properties – 12% of GSP/gross value/gross
receipts of the goods/properties/services sold, bartered or
exchanged, including the use or lease of properties.
 On importation of goods - 12% based on Landed Cost,
plus customs duties, excise taxes, if any, and other charges,
such as tax to be paid by the importer prior to the release of
such goods; provided, that customs duties are determined
on the basis of quantity/volume of the goods.
  On export sales and other zero-rated sales - 0%

4
Any person shall be liable to register if
his gross sales or receipts (there is
reasonable ground to believe that for the
past/next twelve (12) months, other than
those that are exempt under Section 109
(A) to (U)) have exceeded/will exceed
P1,919,500.00.

5
Pay registration fee of P500.00 using BIR Form
No. 0605 for every separate/distinct
establishment/place of business.
Thereafter, pay the annual registration fee of
P500.00 not later than January 31, every year.

6
 Pay annual registration fee of P500.00 for
every place of business or establishment;
 Register the books of accounts;
 Register the sales invoices and official
receipts as VAT-invoices/receipts;
 Submit with the RDO/LTDO having
jurisdiction over the taxpayer, on or before
the deadline set in the filing of VAT Returns.

7
we apply the predominance test. Under
this test, if more than fifty (50%) of its
gross sales and/or gross receipts comes
from its business/es subject to VAT, its
shall fall within the VAT system.
8
He shall be liable to pay
the output tax as if he is a
VAT-registered person, but
without the benefit of
input tax credits for the
period in which he was
not properly registered.
9
 Any VAT-exempt person may elect/opt, however, he
may not cancel his registration for the next 3 years.
 Any VAT-registered person with mixed transactions,
however, the latter will be considered as VAT
transactions.
 Franchise grantees of radio and/or tv broadcasting
whose annual GR of the preceding year do not exceed
P10 million. However, once exercised, shall be
irrevocable.

10
 If he makes a written application and
demonstrate that his gross sales/receipts for
the ff. twelve (12) months, will not exceed
P1.5 million; or
 If he has ceased on his trade/business, and
does not expect to recommence within the
next twelve (12) months.

11
The cancellation will be effective
from the first day of the following
month it was approved.

12
 A VAT invoice for every sale, barter or
exchange of goods or properties; and
 A VAT official receipt for every lease of
goods or properties and for every sale,
barter or exchange of services.

13
Yes. He may issue a single invoice/receipt
involving VAT and non-VAT transactions provided
it shall clearly indicate the break-down of the sales
price between its taxable, exempt and zero-rated
components and the calculation of the VAT on
each portion of the sale shall be shown on the
invoice/receipt.

14
Yes. A VAT registered person may issue separate
invoices/receipts for the taxable, exempt, and zero-
rated component of its sales provided that if the
sales is exempt from VAT, the term "VAT-
EXEMPT SALE" shall be written/printed on the
invoice/receipt and if the sale is zero percent (0%)
VAT, "ZERO-RATED SALE" shall be
written/printed.

15
The non-VAT registered person shall pay
percentage tax, be liable to VAT imposed
in Section 106 or 108 of the Tax Code
without the benefit of any input tax credit
plus 50% surcharge on the VAT payable
(output tax).

16
If a VAT-registered person issues a VAT
invoice/O.R. for a VAT-exempt transaction
but fails to display "VAT-EXEMPT SALE",
the transaction shall become taxable and
the issuer shall be liable to pay VAT.

17
Sales Price P100,000.00
VAT 12,000.00
Invoice Amount P112,000.00

18
 Name, Business Address, Business Style of Seller
 Statement that the seller is a VAT-registered person, followed by his
TIN
 Name Business Address, Business Style of Buyer
 TIN of buyer, if VAT- registered and amount exceed P1,000.00
 Date of transaction
 Quantity
 Unit cost
 Description of the goods/properties/nature of the service
 Purchase price plus the VAT

19
OUTPUT TAX INPUT TAX
VAT due on the VAT due on or paid by a VAT-
sale/lease/exchange of taxable registered on importation of
goods or properties or services. goods/local purchase of goods,
properties or services, including
lease or use of property. It shall
also include transitional input tax
determined in accordance with
Section 111 of the Tax Code,
presumptive input tax and deferred
input tax from previous period.

20
Input Tax > Output Excess input tax shall be
Tax carried over to the
succeeding quarters.
Input Tax < Output VAT Payable shall be paid
Tax at the end of the taxable
quarter.
Input Tax = Output File the Return with no
Tax payment

21
A person who becomes liable to VAT or any person
who elects to be a VAT-registered person shall be
allowed input tax on his beginning inventory of
goods, materials and supplies equivalent to 2% of
the value of such inventory or the actual VAT
paid on such goods, materials and supplies,
whichever is higher, which shall be creditable
against the output tax. (Sec. 9, R.A. No. 9337)

22
Persons or firms engaged in the processing of
sardines, mackerel and milk, and in manufacturing
refined sugar and cooking oil, shall be allowed a
presumptive input tax, creditable against the output
tax, equivalent to 4% of the gross value in money
of their purchases of primary agricultural products
which are used as inputs to their production. (Sec.
9, R.A. No. 9337)

23
"As used in this Subsection, the term 'processing'
shall mean pasteurization, canning and activities
which through physical or chemical process alter
the exterior texture or form or inner substance of a
product in such manner as to prepare it for special
use to which it could not have been put in its
original form or condition. (Sec. 9, R.A. No. 9337)

24
mean all tangible and intangible objects, capable of pecuniary
estimation:
Real properties held primarily for sale or lease in the ordinary

course of trade/business;
Right/privilege to use patent, copyright, design or model, plan,

secret formula or process, goodwill, trademark, trade brand or

other like property or right;
right or privilege to use in the Philippines of any industrial,

commercial or scientific equipment;

right or the privilege to use motion picture films, films, tapes and

discs; and
Radio, television, satellite transmission and cable television time.

25
means the performance of all kinds of services for a fee, remuneration or
consideration, whether in kind or cash, including those
performed/rendered by the ff:
Construction and service contractors;

Stock, real estate, commercial, customs and immigration brokers;

Lessors of property, whether personal or real;

Lessors or distributors of cinematographic films;

Persons engaged in warehousing services;

Persons engaged in milling, processing, manufacturing or repacking

goods for others;
Proprietors, operators or keepers of hotels, motels, rest houses, pension
houses, inns, resorts, theatres, and movie houses;
Proprietors or operators of restaurants, refreshment parlors, cafes, and
other eating places, including clubs and caterers;

26
 Dealers in securities;
 Lending investors;
 Transportation contractors and other domestic common carriers by
land;
 Domestic common carriers by air and sea;
 Sales of electricity;
 Franchise grantees of electric utilities, telephone and telegraph, radio
and/or television broadcasting and all other franchise grantees, except
whose annual GR do not exceed P10 million, and franchise grantees
of gas and water utilities;
 Non-life insurance companies (except crop insurances), including
surety, fidelity, indemnity and bonding companies; and similar
services.
 The lease of use/right/privilege to use any copyright, patent, design or
model, plan, secret formula or process, goodwill, trademark, trade
brand or other like property or right;

27
 The lease or the use of, or the right to use of any industrial, commercial
or scientific equipment;
 The lease of motion picture films, films, tapes and discs;
 The lease or the use of or the right to use radio, television, satellite
transmission and cable television time.
 The supply of scientific, technical, industrial or commercial knowledge
or information;
 The supply of any assistance that is ancillary and subsidiary to and is
furnished as a means of enabling the application or enjoyment of any
such property, or right or any such knowledge or information;
 The supply of services by a nonresident person/his employee in
connection with the use of property or rights belonging to, or the
installation or operation of any brand, machinery or other apparatus
purchased from such non-resident person;
 The supply of technical advice, assistance or services rendered in
connection with technical management or administration of any
scientific, industrial or commercial undertaking, venture, project or
scheme.

28
It is a sale, barter or exchange of goods,
properties and/or services subject to 0% VAT.
(Sections 106 (A) (2) and 108 (B) NIRC)
It is a VAT-able transaction, but shall not result in
any output tax. However, input tax on purchases
of goods, properties or services, related to such
0-rated sales, shall be available as tax
credit/refund. (RR No. 16-2005)

29
Taxpayers shall file their application directly with
the Audit Information, Tax Exemption and
Incentives Division (AITEID) under the
Assessment Service, or with the LTAID I and II,
BIR National Office, as the case may be.

30
It is issued by the BIR before a government
contractor is fully paid for his contract with the
government. Taxpayers may file their application at
the BIR National Office at the Audit Information,
Tax Exemption and Incentives Division (AITEID)

31
 Processing, manufacturing/repacking goods for exporters;
 Services to an exporter or to a non-resident person ETB;
 Services to persons/entities exempted under special laws or
international agreements;
 Services to persons engaged in international shipping or air transport
operations, including leases of property for use thereof; Provided,
that the services shall not pertain to those made to common carriers
 Services by subcontractors and/or contractors in processing,
converting, or manufacturing goods for an enterprise whose export
sales exceeds seventy percent (70%) of total annual production;
 Transport of passengers and cargo by domestic air or sea carriers
from the Philippines to a foreign country. Gross receipts are still
liable to a percentage tax of 3%; and
 Sale of power or fuel generated through renewable energy.

32
 Export sales
 sale and actual shipment of goods from the Philippines to a foreign
country;
 sale of raw materials or packaging materials to a non-resident buyer for
export;
 The sale of raw materials or packaging materials to an export-oriented
enterprise whose export sales exceed seventy percent (70%) of total annual
production;
 Sale of gold to the BSP;

 Transactions considered export sales; and

 The sale of goods, supplies, equipment and fuel to persons engaged in

international shipping or international air transport operations.
 Foreign Currency Denominated Sales
 Sales to Persons or Entities Deemed Tax-exempt under Special Law or
International Agreement

33
 Transfer, use or consumption, not in the course of business, of goods or
properties originally intended for sale or for use in the course of business.
 Distribution or transfer to:
 Shareholders/investors share in profits of the VAT-registered person; or

 Creditors in payment of debt or obligation

 Consignment of goods if actual sale is not made within sixty (60) days
following the date such were consigned.
 Retirement from or cessation of business, with respect to all goods on hand,
whether capital goods, stock-in-trade, supplies or materials as of the date of
such retirement or cessation, whether or not the business is continued by the
new owner or successor. The following circumstances shall, among others,
give rise to transactions "deemed sale";
 Change of ownership of the business.

 Dissolution of a partnership and creation of a new partnership which takes

over the business.

34
 Medical services such as dental & veterinary services by professionals;
 Legal services;
 Non-food agricultural products;
 Marine and forest products;
 Cotton and cotton seeds;
 Coal and natural gas;
 Petroleum products;
 Passenger cargo vessels of more than 5,000 tons;
 Work of art, literary works, musical composition;
 Generation, transmission and distribution of electricity including that of
electric cooperatives;
 Sale of residential lot valued at more than P1,500,000.00;
 Sale of residential house & lot/dwellings valued at more than
P2,500,000.00;
 Lease of residential unit with a monthly rental of more than P10,000.

35
It is a sale of goods, properties or service and
the use or lease of properties which is not
subject to output tax and whereby the buyer
is not allowed any tax credit or input tax
related to such exempt sale.

36
 Sale or importation of agricultural and marine food products in their original
state;
 Sale or importation of fertilizers; seeds, seedlings and fingerlings; fish, prawn,
livestock and poultry feeds;
 Importation of personal and household effects belonging to citizens coming to
resettle in the Philippines;
 Importation of professional instruments and implements, wearing apparel,
domestic animals, and personal household effects (except any vehicle, vessel,
aircraft, machinery and other goods for use in the manufacture and merchandise
of any kind in commercial quantity) belonging to persons coming to settle in the
Philippines, for their own use and not for sale, barter or exchange, accompanying
such persons, or arriving within ninety (90) days before or after their arrival,;
 Services subject to percentage tax;
 Services by agricultural contract growers and milling for others of palay into rice,
corn into grits, and sugar cane into raw sugar;

37
 Medical, dental, hospital and veterinary services except those rendered by
professionals;
 Educational services rendered by private educational institutions duly accredited
by DepED, CHED) and TESDA and rendered by government educational
institutions;
 Services rendered by individuals pursuant to an employer-employee relationship;
 Services rendered by regional or area headquarters established in the Philippines
by multinational corporations which act as supervisory, communications and
coordinating centers and do not earn or derive income from the Philippines;
 Transactions which are exempt under international agreements;
 Sales by agricultural cooperatives duly registered with the CDA;
 Gross receipts from lending activities by credit or multi-purpose cooperatives
duly registered with the CDA;
 Sales by non-agricultural, non-electric and non-credit cooperatives duly
registered with and in good standing with CDA; Provided, that the share capital
contribution of each member does not exceed P15,000;
 Export sales by persons who are not VAT-registered;

38
 The following sales of real properties are exempt from VAT, namely:
 Sale of real properties not primarily held for sale;
 Sale of real properties utilized for low-cost housing;
 Sale of real properties utilized for specialized housing wherein price
ceiling per unit is P225,000.00;
 Sale of residential lot valued at One Million Five Hundred Thousand
Pesos (P1,500,000.00) and below, or house and lot and other residential
dwellings valued at Two Million Five Hundred Thousand Pesos
(P2,500,000.00) and below.
 Lease of residential units with a monthly rental per unit not exceeding Ten
Thousand Pesos (P10,000.00);
 Sale, importation, printing or publication of books and any newspaper,
magazine, review or bulletin which appears at regular intervals not devoted
principally to the publication of paid advertisements;
 Importation of life-saving equipment, safety and rescue equipment and
communication and navigational safety equipment, steel plates and other
metal plates including marine-grade aluminum plates, used for shipping
transport operations;

39
 Sale, importation or lease of passenger or cargo vessels and aircraft,
including engine equipment and spare parts; Provided, shall be limited to
those of150 tons and above, including engine and spare parts of said vessels;
Provided, further, that the vessels to be imported shall comply with the age
limit requirement, at the time of acquisition, as follows: (a) passenger and/or
cargo vessel, age limit is 15 years old, (b) tankers, 10 year old, and (c) for
high-speed passengers crafts, 5 years old; Provided, exemption shall be
subject to Section 4 of Republic Act No. 9295, otherwise known as "The
Domestic Shipping Development Act of 2004";
 Importation of fuel, goods and supplies engaged in international shipping or
air transport operations; Provided, that the former shall be used exclusively to
transport of goods and/or passenger from a port in the Philippines directly to
a foreign port, or vice-versa, unless the docking or stopping at any other
Philippine port is for the purpose of unloading passengers and/or cargoes that
originated form abroad, or to load passengers and/or cargoes bound for
abroad; Provided, further, that if any portion of the former is used for
purposes other that the mentioned in the paragraph, such shall be subject to
12% VAT;

40
 Services of banks, non-bank financial intermediaries performing quasi-
banking functions, and other non-bank financial intermediaries, such as
money changers and pawnshops, subject to percentage tax under Sections
121 and 122, respectively of the Tax Code; and
 Sale or lease of goods or properties or the performance of services other than
the transactions mentioned in the preceding paragraphs, the gross annual
sales and/or receipts do not exceed the amount of One Million Five Hundred
Thousand Pesos (P1,500,000.00). Provided, that not later than January 31,
2009 and every three (3) years thereafter, the amount of P1,500,000.00 shall
be adjusted to its present value after using the Consumer Price Index, as
published by the NSO.

41
RELIEF means Reconciliation of Listing for
Enforcement. It supports the third party information
program of the Bureau through the cross referencing of
third party information from the taxpayers' Summary
Lists of Sales and Purchases prescribed to be
submitted on a quarterly basis.

42
VAT taxpayers with quarterly total
sales/receipts (net of VAT), exceeding
P2,500,000.00.

43
VAT taxpayers with quarterly total
purchases (net of VAT) of goods and
services, including importation exceeding
P1,500,000.00.

44
 Quarterly Summary List of Sales to
Regular Buyers/ Customers Casual
Buyers/ Customers and Output Tax
 Quarterly Summary of List of Local
Purchases and Input tax; and
 Quarterly Summary List of
Importation.

45
The Summary List of Sales/Purchases,
whichever is applicable, shall be
submitted on or before the 25th day of
the month following the close of the
taxable quarter - calendar quarter or
fiscal quarter.

46
 For failure to file, keep or supply a statement, list or information
required on the date prescribed shall pay and administrative
penalty of One Thousand Pesos (P1,000.00) for each such failure,
unless it is shown that such failure is due to reasonable cause and
not to willful neglect; and
 An aggregate amount to be imposed for all such failures during a
taxable year shall not exceed Twenty-Five Thousand Pesos
(P25,000.00).

47
(a) In the case of a VAT-registered Person:
 Failure to issue receipts or invoices;
 Failure to file a value-added-tax return; or
 Understatement of taxable sales or receipts by 30%  or more of his correct
taxable sales or receipts for the taxable quarter.
(b) Failure to any Person to Register as Required under Section 236
 The temporary closure of the establishment shall be for the duration of not
less than five (5) days and shall be lifted only upon compliance with
whatever requirements prescribed by the Commissioner in the closure
order.

48
 The government or any of its political subdivisions,
instrumentalities or agencies, including GOCCs withhold a
Final VAT due at the rate of 5% of the gross payment (includes
12% VAT).
- 5% represent net VAT payable of seller.
- What if:
Actual Input VAT > 7% = excess may form part of
expense/cost.
Actual Input VAT < 7% = excess must be closed to
expense/cost.

49
 The government or any of its political subdivisions,
instrumentalities or agencies including GOCCs, as well as private
corporation, individuals, estates and trusts, whether large or non-
large taxpayers, shall withhold twelve percent (12%) VAT with
respect to the following payments:
 Lease or use of properties or property rights owned by non-
residents; and
 Other services rendered in the Philippines by non-residents.

50
 Monthly Quarterly
BIR Form 2550 M – BIR Form No. 2550Q - Quarterly Value-
Monthly Value-Added Tax Declaration Added Tax Return (February 2007 ENCS)
(February 2007 ENCS)
Deadline - Not later than the 20th day Deadline - Within twenty five (25) days
following the end of each month following the close of taxable quarter.

51
 Quarterly
BIR Form No. 2550Q - Quarterly Value-Added Tax Return (February 2007 ENCS)

Deadline - Within twenty five (25) days following the close of taxable quarter.

52
 Period for filing Monthly
Business Industry
VAT Declarations
Group A
Insurance and Pension
25 days following the end of
Funding                                                  
the month
Activities Auxiliary to Financial Intermediation
Construction
Water Transport
Hotels and Restaurants
Land Transport
Group B
Manufacture and Repair of Furniture
Manufacture of Basic Metals; Chemicals and Chemical
Products; Coke, Refined Petroleum & Fuel Products;
Electrical Machinery & Apparatus N.E.C.; Fabricated
24 days following the end of
Metal Products; Food, Products & Beverages;
the month
Machinery & Equipment NEC; Medical, Precision,
Optical Instruments; Motor Vehicles, Trailer & Semi-
Trailers; Office, Accounting & Computing Machinery;
Other Non-Metallic Mineral Products; 53
 Period for filing Monthly
Business Industry
VAT Declarations
Manufacture of Other Transport Equipment; Other
Wearing Apparel; Paper and Paper Products; Radio, TV
& Communication Equipment/ Apparatus; Rubber &
Plastic Products; Textiles; Tobacco Products; Wood &
Wood Products;
Manufacturing N.E.C.
Metallic Ore Mining
Non-Metallic Mining & Quarrying

54
Group C
Retail Sale 23 days following the end of the
Wholesale Trade and Commission Trade month
Sale, Maintenance, Repair of Motor Vehicle, Sale of
Automotive Fuel
Collection, Purification and Distribution of Water
Computer and Related Activities
Real Estate Activities
Group D
Air Transport 22 days following the end of the
Electricity, Gas, Steam & Hot Water Supply month
Postal & Telecommunications
Publishing, Printing & Reproduction of Recorded
Media
Recreational, Cultural & Sporting Activities
Recycling
Renting of Goods & Equipment
Supporting & Auxiliary Transport Services
55
Group E
Activities of Membership
Organizations, Inc. 21 days following the end of the month
Health and Social Work
Public Admin & Defense Compulsory
Social Security
Research and Development
Agricultural, Hunting, and Forestry
Farming of Animals
Fishing
Other Service Activities
Miscellaneous Business Activities
Unclassified

56
  

Revenue Regulations (RRs)

Issuance No. SUBJECT Date
RR No. 13-2008 Consolidated Regulations on Advance Value-Added Tax 9/19/2008
on the Sale of Refined Sugar; Amending and/or
Revoking All Revenue Issuances Issued to this Effect,
and for Other Related Purposes
RR No. 13 - 2007 Prescribing the Rules on the Advance Payment of Value- 10/15/2007
Added Tax/Percentage Tax on the Transport of Naturally
Grown Planted Timber Products
RR No. 11-2007 Suspension of the Implementation of Revenue 8/15/2007
Regulations No. 6-2007
RR No. 6-2007 Consolidated Regulations on Advance Value-Added Tax 3/21/2007
on the Sale of Refined Sugar, Amending and/or Revoking
all Revenue Issuances Issued to this Effect, and for
Other Related Purposes
RR No. 4-2007 Amending Certain Provisions of RR No. 16-2005, As 2/7/2007
Amended, Otherwise Known as the Consolidated Value-
Added Tax Regulations of 2005
RR No. 2-2007 Amending Certain Provisions of RR No. 16-2005, As 12/22/2006
Amended, Otherwise Known as the Consolidated Value-
Added Tax Regulations of 2005
RR 16-2005 Consolidated Value-Added Tax Regulations of 2005. 9/1/2005
RR 7-2004 Implementing Sec. 109(bb) and (cc) of the National 5/7/2004
Internal Revenue Code, as Amended by RA 9238,
Excluding Services Rendered by Doctors of Medicine duly
Registered with the Professional Regulatory Commission
(PRC), and Services Rendered by Lawyers Duly
Registered with the Integrated Bar of the Philippines
(IBP) from the Coverage of Value-Added Tax. 57
  

Revenue Regulations (RRs)

Issuance No. SUBJECT Date
RR 4-2004 Supplementing the Rules on the Advance Payment of 3/22/2004
Value-Added Tax on Sale of Refined Sugar as Provided
for in RR 2-2004.
RR 2-2004 Further Enhancing the Rules on the Advance Payment of 1/2/2004
Value-Added Tax on Sale of Refined Sugar, Amending RR
7-89 and 29-2002
RR 29-2003 Advance Payment of VAT on the Sale of Flour 10/30/2003
RR 28-2003 Amending Further Pertinent Provisions of RR 2-98 as 10/15/2003
Amended, Relative to the Issuance of Certificate of
Value-Added Tax Withheld at Source, Thereby Amending
RR 4-2002; and For the Purpose.
RR 27-2003 Regulations Further Amending the Transitory Provisions 6/30/2003
of RR 18-99 as Amended by RR 12-2003, Pertaining to
the Deadline for the Usage of Properly Stamped Unused
Non-VAT Invoices or Receipts.
RR 5-2003 Rules and Regulations To Implement The Remittance of the Following: 1/22/2003
(a) 70% Share of the ARMM in the Withholding Tax Payments of
National Government Agencies (NGAs) and in the National Collections
from Taxpayers Other Than NGAs Provided for Under Section 9, Article
IX of RA 9054, Amending Therein Certain Sections of RR 4-98; (b)
Allotment to the Regional Government (RG) of the 30% Share of the
National Government (NG) of all Current Year Collections of Internal
Revenue Taxes Within ARMM for a Period of Five (5) Years as may be
Provided in the Annual Appropriations Act as Provided for Under Section
15, Article IX of RA 9054; and c) 50% of the 80% Share of the NG from
the Yearly Incremental Revenue From VAT Collections Within ARMM
Received by the Central Government as Provided for Under Section 15,
in Relation to Section 9, both of Article IX of RA 9054 As Well As in
Relation to Section 283 of the National Internal Revenue Code (NIRC) of
1997. 58
  

Revenue Regulations (RRs)

Issuance No. SUBJECT Date
RR 29-2002 Enhancing the Rules on the Advance Payment of Value- 12/9/2002
Added Tax on the Sale of Refined Sugar, thereby
Amending RR 7-89, and Other Purposes.
RR 8-2002 Amending Further Pertinent Provisions of RR 7-95, as 6/13/2002
Amended , With Respect to the Time of Filing of
Quarterly VAT Returns; Contents and Submission of
Quarterly Total of Monthly Sales and Purchases Per
Supplier or Customer, and Providing for the Penalties
and Effect of Non-Submission Thereof; and Clarifying
Further the Mode of Remittance of VAT Due From Non-
Residents.
RR 2-98 Implementing Republic Act No. 8424, "An Act Amending
the National Internal Revenue Code (NIRC) as Amended"
relative to the Withholding on Income Subject to the
Expanded Withholding Tax and Final Withholding Tax,
Withholding of Income Tax on Compensation,
Withholding of Creditable VAT and other Percentage
Taxes

59
 Revenue Memorandum Orders(RMOs)
Issuance
SUBJECT Date
No.
RMO No. 1/15/2009
Amendment and Consolidation of the Guidelines in the Conduct of
3-2009
Surveillance and Stock-Taking Activities, and the Implementation of the
Administrative Sanction of Suspension and Temporary Closure of Business
RMO No. 12/31/2007
Prescribing the Guidelines and Procedures in the Printing, Requisition,
6-2008
Reporting, Issuance and Distribution of Certificate of Advance Payment of
Value-Added Tax/ Percentage Tax on the Transport of Naturally Grown and
Planted Timber Products as Prescribed in RR No. 13-2007 Dated October
15, 2007
RMO No. 7/20/2007
16-2007 Prescribing Additional Procedures in the Audit of Input Taxes Claimed in
the VAT Returns by Revenue Officers and Amending "Annex B" of RMO
No. 53-98 With Respect to the Checklist of Documents to be Submitted by a
Taxpayer Upon Audit of his/its VAT Liabilities as well as the Mandatory
Reporting Requirements to be Prepared by the Assigned Revenue Officer/s
Relative Thereto, All of Which Shall Form an Integral Part of the Docket

RMO No. Prescribing the guidelines and procedures in the processing of applications 12/15/2005
7-2006 for zero-rating of effectively zero-rated transactions for Value-Added Tax
purposes
RMO No. Suspension of issuance of assessments for deficiency Value-Added Tax 10/11/2005
26-2005 against cinema/theater operators/owners 60
 Revenue Memorandum Orders(RMOs)
Issuance
SUBJECT Date
No.
RMO No. Value-Added Tax (VAT) Exemption Certificate/ Identification Card Issued 5/24/2004
22-2004 to qualified foreign embassies and their qualified personnel Amending/
Modifying RMO No. 81-99
RMO No. 12/29/2003
Prescribing the guidelines and procedures in the implementation of RR No.
5-2004
29-2003 on the advance payment of Value-Added Tax on the sale of flour
RMO No. Prescribing the guidelines and procedures in the processing and issuance of 10/28/2002
35-2002 Authority to Release Imported Goods (ATRIG) for Excise and Value-Added
Tax Purposes
RMO No. Tax treatment of sales of goods, properties and services made by VAT- 2/2/2000
9-2000 registered suppliers to BOI-registered manufacturers-exporters with 100%
export sales
RMO No. Issuance of Value-Added Tax (VAT) Exemption Certificate to all qualified 10/8/1999
81-99 embassies and their personnel
RMO No. Prescribing the Modified Procedures on the Processing of Claims for VAT 5/6/1994
40-94 Credit/ Refund

61
 Revenue Memorandum Circulars (RMCs)
Issuance No. SUBJECT Date

RMC No. 77- Taxability of Director’s Fees Received By 11/24/2008

2008 Directors Who are not Employees of the
Corporation for VAT or Percentage Tax
Purposes as Espoused Under Revenue
Memorandum Circular No. 34-2008
RMC No. 46- Clarification of Issues Concerning Common 2/1/2008
2008 Carriers by Air and Their Agents Relative to
the Revenue and Receipt from Transport of
Passengers, Goods/Cargoes and Mail, and
from Excess Baggage
RMC No. 34- Tax Treatment of Director’s Fees for 4/15/2008
2008 Income Tax and Business Tax Purposes
RMC No. 59- Clarifying the Effect of Suspension of RR 9/12/2007
2007 No. 6-2007, Otherwise Known As the
"Consolidated Regulations on Advance
Value-Added Tax on the Sale of Refined
Sugar, Amending and/or Revoking All
Revenue Issuances Issued to this Effect and
for Other Related Purposes"
RMC No. 53- Reiteration of the Amendment Made by RA No. 8/7/2007
2007 9337 Imposing VAT on the Sale of Non-Food
Agricultural Products, Marine and Forest Products
and on the Sale of Cotton and Cotton Seeds in 62
their Original State
 Revenue Memorandum Circulars (RMCs)
Issuance No. SUBJECT Date
RMC No. 39- Clarifying the Income Tax and VAT 1/22/2007
2007 Treatment of Agency Fees/Gross Receipts of
Security Agencies Including the Withholding
of Taxes Due Thereon
RMC No. 35- Clarifying the Proper VAT and EWT 6/21/2006
2006 Treatment of Freight and Other Incidental
Charges Billed by Freight Forwarders
RMC No. 31- Value Added Tax (VAT) on the Construction 5/29/2006
2006 or Renovation of Official Buildings or
Properties of the United States of America
Embassy
RMC No. 30- Prescribing the Submission of a Narrative 3/23/2006
2006 Memorandum Report to Accompany the VAT
Credit Evaluation Report and Requiring the
Attachment of Certain Documents Prior to
Approval of the Tax Credit Certificate (TCC)
Recommended by the Tax and Revenue
Group (TRG), Department of Finance One-
Stop Shop Inter-Agency Tax Credit and Duty
Drawback Center (DOF-OSS)
RMC No. 22- Clarifying certain issues relating to the 4/5/2006
2006 implementation of the increase in the Value-Added
Tax rate from 10% to 12% on the sale of goods
pursuant to Republic Act No. 9337
63
 Revenue Memorandum Circulars (RMCs)
Issuance No. SUBJECT Date
RMC No. 62- Revised guidelines in the registration and 10/18/2005
2005 invoicing requirements including clarification
on common issues affecting Value-Added
Tax (VAT) taxpayers Pursuant to RA No.
9337 (An Act Amending Sections 27, 28, 34,
106, 108, 109, 110, 111, 112, 113, 114,
116, 117, 119, 121, 148, 151, 236, 237 and
288 of the National Internal Revenue Code
of 1997, as Amended, and for other
Purposes)
RMC No. 57- Attachments to the quarterly VAT return to 10/18/2005
2005 be filed starting October 25, 2005
RMC No. 52- Value-Added Tax (VAT) Liability of the 9/28/2005
2005 Tollway Industry
RMC No. 29- Clarifying the provisions of Republic Act No.
2005 9337 (VAT Law of 2005) applicable to the 6/29/2005
petroleum industry
RMC No. 70- Clarification on proper determination of 11/20/2004
2004 amount of Value-Added Tax on VAT invoices
or VAT official receipts
RMC No. 60- Clarification regarding the withholding of 8/20/2004
2004 creditable Value-Added Tax by government
offices for purchases of P1,000.00 and below
RMC No. 37- Settlement of the Value-Added Tax liabilities of 6/16/2004
64
2004 pawnshops for taxable years 1996 to 2002
 Revenue Memorandum Circulars (RMCs)
Issuance No. SUBJECT Date
RMC No. 21- Clarification of Issues on How to Fill-up the 3/24/2006
2006 new Version of VAT Forms (September,
2005 Version) and other Related Issues
RMC No. 8- Clarifying certain issues relating to the 1/31/2006
2006 implementation of the increase in the VAT
rate from 10% to 12% pursuant to Republic
Act No. 9337
RMC No. 5- Prescribing the use of the Government 11/2/2005
2006 Money Payment Chart Implementing
Sections 2.57.2, 4.114 and 5.116 of
Revenue Regulations No. 2-98 as amended
by Revenue Regulations No. 16-2005 in
relation to Sections 57 (B), 114 (C) and 116
to 123 of Republic Act No. 8424 as amended
by Republic Act No. 9337
RMC No. 72- Transition procedures for all Electronic Filing 12/16/2005
2005 and Payment System filers (Large
Taxpayers/Top 10,000 Corporations) in filing
tax returns affected by the new VAT Law
(R.A. 9337)
RMC No. 68- Enhanced VAT forms – BIR Form No. 2550M 12/1/2005
2005 (Monthly Value-Added Tax Declaration) and
BIR Form No. 2550Q (Quarterly Value-Added
Tax Return) – September 2005 version
65
 Revenue Memorandum Circulars (RMCs)
Issuance No. SUBJECT Date
RMC No. 62- Revised guidelines in the registration and 10/18/2005
2005 invoicing requirements including clarification
on common issues affecting Value-Added
Tax (VAT) taxpayers Pursuant to RA No.
9337 (An Act Amending Sections 27, 28, 34,
106, 108, 109, 110, 111, 112, 113, 114,
116, 117, 119, 121, 148, 151, 236, 237 and
288 of the National Internal Revenue Code
of 1997, as Amended, and for other
Purposes)
RMC No. 57- Attachments to the quarterly VAT return to 10/18/2005
2005 be filed starting October 25, 2005
RMC No. 52- Value-Added Tax (VAT) Liability of the 9/28/2005
2005 Tollway Industry
RMC No. 29- Clarifying the provisions of Republic Act No.
2005 9337 (VAT Law of 2005) applicable to the 6/29/2005
petroleum industry
RMC No. 70- Clarification on proper determination of 11/20/2004
2004 amount of Value-Added Tax on VAT invoices
or VAT official receipts
RMC No. 60- Clarification regarding the withholding of creditable 8/20/2004
2004 Value-Added Tax by government offices for
purchases of P1,000.00 and below
RMC No. 37- Settlement of the Value-Added Tax liabilities of 6/16/2004
2004 pawnshops for taxable years 1996 to 2002 66
 Revenue Memorandum Circulars (RMCs)
Issuance No. SUBJECT Date
RMC No. 9- Guidelines and Policies Applicable to the 2/19/2004
2004 Business Tax Applicable to Banks and Non-
Bank Financial Intermediaries Performing
Quasi-Banking Functions and other Non-
Bank Financial Intermediaries As A Result of
the Enactment and Effectivity of Republic Act
No. 9238, An Act Amending Certain
Provisions of the National Internal Revenue
Code of 1997, As Amended, by
Excluding Several Services from the
Coverage of the Value-Added Tax and Re-
Imposing the Gross Receipts Tax on Banks
and Non-Bank Financial Intermediaries
Performing Quasi-Banking Functions and
Other Non-Bank Financial Intermediaries
Beginning January 1, 2004
RMC No. 6- Clarifying Certain Issues Relative to the 1/15/2003
2003 Services Rendered by Individual Professional
Practitioners, General Professional
Partnerships, Entertainers, and Professional
Athletes Who Are Subject to the Value-
Added Tax or Percentage Tax, Whichever is
Applicable, Beginning January 1, 2003
67
 Revenue Memorandum Circulars (RMCs)
Issuance No. SUBJECT Date
RMC No. 2-2004 Clarifying the issues on VAT taxable transactions of 12/26/2003
Philippine Ports Authority Amending Revenue
Memorandum Circular No. 20-88, Pursuant to
Republic Act No. 7716 As Implemented by
Revenue Regulations No. 7-95
RMC No. 61- Issuance of VAT Invoices/Receipt for 10/6/2003
2003 Non-VAT/Exempt Sale of Goods, Properties or
Services
RMC No. 49- Amending Answer to Question Number 17 of 8/15/2003
2003 Revenue Memorandum Circular No. 42-2003 and
Providing Additional Guidelines on Issues Relative
to the Processing of Claims for Value-Added Tax
(VAT) Credit/Refund, Including Those Filed with
the Tax and Revenue Group, One-Stop Shop Inter-
Agency Tax Credit and Duty Drawback Center,
Department of Finance (OSS-DOF) by Direct
Exporters
RMC No. 42- Clarifying certain issues raised relative to the 7/15/2003
2003 processing of claims for Value-Added Tax (VAT)
credit/refund, including those filed with the Tax
and Revenue Group, One-Stop Shop Inter-Agency
Tax Credit and Duty Drawback Center, Department
of Finance (OSS-DOF) by Direct Exporters
RMC No. 30- Clarification of Paragraph 1-Q of Revenue 5/20/2003
2003 Memorandum Circular No. 28-2003
RMC No. 56- Taxability of Health Maintenance Organizations 12/13/2002
2002 (HMOs) for VAT purposes.
RMC No. 45- 10/12/2001 68
Taxability of Pawnshop Operators for VAT Purposes
 Revenue Memorandum Circulars (RMCs)
Issuance No. SUBJECT Date
RMC No. 28- Taxability of Movie/Cinema House Operators 7/2/2001
2001 for VAT Purposes
RMC No. 25- Disseminating the Ruling of the 3/18/1999
99 Commissioner of Internal Revenue on the
Non-eligibility for VAT Zero-Rating of
Automobile Sales to Entities Registered with
PEZA, SBMA and Clark Development
Authority
RMC No. 32- Japanese Contractors undertaking Overseas 5/3/99
99 Economic Cooperation Fund of Japan (OECF)
Funded Project are Exempt from the eight
and one half percent (8.5%) creditable VAT
imposed under Section 114(C) of the Tax
Code of 1997 and to the One Percent (1%)
Expanded Withholding Tax (EWT) imposed
under Section 2.57.2(E) of RR No. 2-98
implementing Section 57(B) of the Tax Code
of 1997

69
70