Tax Notes: Optional filing and payment of monthly VAT returns now allowed

The effectivity of Tax Reform for Acceleration and Inclusion (Train) Law repealed the monthly filing of the value-added tax (VAT) returns (BIR Form 2550M) starting Jan. 1, 2023, but retained the filing of the quarterly VAT returns (BIR Form 2550Q). Recently, the issuance of Revenue Memorandum Circular (RMC) 52-2023 revived the monthly filing but in an optional capacity.

As such, VAT taxpayers have the option to file their monthly VAT returns using BIR Form 2550M for the first two quarters without any deadline, but shall still comply with the quarterly filing of the BIR Form 2550Q within 25 days following the close of each taxable quarter. Non-filing of BIR Form 2550M will not give rise to open cases with the BIR, provided that the filing of the BIR Form 2550Q returns is properly complied.

The procedures and guidelines prescribed by Revenue Regulations 16-2005 and 6-2014, and RMC 68-2005, including other revenue issuances in relation to the use of BIR Form 2550M, shall continue to apply for the monthly filing.


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