August 27, 2010 BIR RULING NO. 044-10 RMC 2-90 & RR 16-2005; BIR Ruling No.

201-90

P.L. Roldan Accounting Office Unit 2806 Jollibee Plaza Condominium F. Ortigas, Jr. Road Ortigas Center, Pasig City Attention: Mr. Paul Nicomedes L. Roldan Gentlemen : This refers to your letter dated March 20, 2010 requesting for a ruling confirming the following: 1) the requirement to submit Summary List of Purchases (SLPs) found in Revenue Regulations (RR) No. 8-2002 does not apply to your client who operates a retail store inasmuch as such requirement excludes wholesalers/retailers; and 2) the P1,000,000.00 threshold found in Revenue Memorandum Circular (RMC) No. 51-2009 refers only to purchases of goods offered for sale by a retailer in the ordinary course of business. As represented, your client, Ana Maria C. Manguerra, is the owner of 1024 Convenience Store, a retail store located at No. 1024 A. Arnaiz Avenue, San Lorenzo Village, Makati City. The store offers consumers various retail products mostly snack items. For the years 2008 and 2009, the quarterly purchases of your client involving goods offered for sale in the course of her business were as follows: Quarter 1st 2nd 3rd 4th 2008 2009

PhP915,946.60 PhP962,119.58 938,859.21 1,073,253.10 992,315.25 914,344.12 900,277.93 979,077.89

For the same years, i.e., 2008-2009, however, your client made payments for utilities, lawyer, accountant and labor maintenance on top of the purchases above, as follows: 2008 Professional Fee Repair & Maintenance Supplies 62,314.95 38,508.91 44,814.33 2nd Qtr 45,000.00 3rd Qtr 30,000.00 4th Qtr 30,000.00

00 –––––––– 74. preneed companies.123.79 6.080.00 –––––––– 92.22 Equipment. otherwise known as the Consolidated Value-Added Tax Regulations of 2005.––––––––– 107." RMC 2-90 "4. If a taxpayer is a . 7-95) as incorporated in RR 16-2005. department stores and other sellers of goods and services to last consumers may submit list of purchases of goods and services. 7-95 and RR No. restaurants.06 ======== In reply.165. please be informed that the submission of Summary Lists of Sales and Purchases.33 ======== 4th Qtr 30.357.123. Revenue Regulations (RR) No. wherein taxpayers declare their taxable sales and purchases for prescribed periods is mandated under Revenue Regulations (RR) No. 14-2005.221.508. non-life insurance and common carriers shall submit only the names of the persons from whom they purchased the subject goods and services to be contained in the quarterly Summary Lists of Purchases.61 Telephone 1. Submission of the Names of All Buyers of Goods and Services Subject to ValueAdded Tax (VAT) to be Contained in Summary Lists of Sales and the Names of Sellers/Suppliers to be Contained in Summary Lists of Purchases. .310.568. Furniture & Fixtures Insurance 3.000.79 –––––––– 96.314.60 42.21 55. Under the covering Regulations.000. However.776.84 666.23 ======== 6.96 3.00 Professional Fee 30. retailers selling direct to consumers.22 5. 4.86 3. 13-97 and RMC No. .21 ======== 2nd Qtr 45.707. 2-90 provide as follows: RR 13-97 "SEC.11 8. 8-2002 (amending RR No.776.00 Repair & Maintenance Supplies 48.000. — .66 892. hotels.75 Representations 711. lending investors.110-4.814.54 ======== 5.468. Q. which superseded RR No. .299. operators of supermarkets and department stores.820.401. supermarkets.95 ========= 2009 1st Qtr –––––––– 68.22 –––––––– 96.

Submission of Quarterly Summary List of Sales and Purchases. On the other hand. states — "SECTION 4. with quarterly total purchases (net of VAT) exceeding One Million Pesos (P1. Purchases Subject to VAT (exclusive of VAT) — on services. 201-90 dated October 16. Exempt Purchases. — BIR-registered name of the seller/supplier/service-provider. Zero-rated Purchases.114-3. among others. however. — All persons liable for VAT such as manufacturers. (2) Persons Required to Submit Summary Lists of Purchases. e. he is still required to submit the list of his purchases for his wholesale and retail business as well as the summary list of his sales in wholesale business. — All persons liable for VAT such as manufacturers. f. with quarterly total sales/receipts (net of VAT) exceeding Two Million Five Hundred Thousand Pesos (P2. b. Information that must be Contained in the Quarterly Summary List of Purchases. — Persons Required to Submit Summary Lists of Sales/Purchases. — The following information must be indicated in the following quarterly summary schedules of purchases: (1) a. service-providers. in relation to RMC 51-2009. 1990) In view of the foregoing.500.00). (BIR Ruling No. — (1) Persons Required to Submit Summary Lists of Sales.wholesaler and retailer at the same time.000. Address of seller/supplier/service-provider. the requirement to submit SLPs includes wholesalers and retailers. still required to submit the list of his purchases for his wholesale and retail business as well as the summary list of his sales in wholesale business. a taxpayer who is a wholesaler and retailer at the same time is exempt from submitting the summary list of sale to last consumers. is he exempt from submitting the summary list of sale to last consumers? Ans. and . wholesalers." Following the above guidelines. TIN of the seller. Yes. RR 16-2005. but for consumption not in connection with trade or business. 000.000. service-providers. a. among others. (i) (ii) The Quarterly Summary List of Local Purchases and Input Tax. "last consumers" shall refer to persons who purchase goods or services not for resale or for conversion into finished product or to be supplied with services or to be used in connection with VAT-taxable business. In this connection. Purchases Subject to VAT (exclusive of VAT) — on capital goods. However.00). he is exempt from the requirement to submit the list of sales to "last consumers". xxx xxx xxx d. He is. d. c.

the basis for determining who should submit SLPs is the total quarterly purchases of a VAT-registered person such that the P1. (The total amount of purchases shall be system-generated)" Accordingly. (SGD.) KIM S.(iii) (iv) g.000 threshold refers to the said purchases not only of goods offered for sale by a retailer in the ordinary course of business but also payments made to service-providers. and } } (to be computed } not on a per supplier basis but on a per month basis) h. Very truly yours. Non-Creditable Input Tax. Please be guided accordingly. Purchases Subject to Final VAT Withheld. Creditable Input Tax. JACINTO-HENARES Commissioner of Internal Revenue . Purchases Subject to VAT (exclusive of VAT) — on goods other than capital goods.000.

Sign up to vote on this title
UsefulNot useful