Tax Alert No. 4 [Revenue Memorandum Circular (RMC) No. 5-2023 dated 03 January 2023]

Providing Transitory Provisions for the Implementation of the Quarterly Filing of VAT returns starting 1 January 2023 pursuant to Section 114(A) of the National Internal Revenue Code of 1997 (Tax Code), as Amended by Republic Act (RA) No. 10963, otherwise known as the "Tax Reform for Acceleration or Inclusion" or the "TRAIN Law"

RMC No. 5-2023 has been issued to avoid confusion during the initial implementation of the amendment by Section 37 of TRAIN Law to Section 114(A) of the Tax Code of 1997, as amended. This amendment provides that “beginning January 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." In this regard, VAT-registered taxpayers are no longer required to file the Monthly Value-Added Tax Declaration (BIR Form No. 2550M) for transactions starting 1 January 2023 but will instead file the corresponding Quarterly Value-Added Tax Return (BIR Form No. 2550Q) within twenty-five (25) days following the close of each taxable quarter when the transaction transpired. 

The table below is likewise provided in this RMC to provide guidance to the taxpayers:

*the 25th day deadline falls on a Saturday

You may access the full version of this issuance through the BIR website.