Vat Payable and

Compliance
Requirements
Compliance Requirements
1. Invoicing requirement
2. Accounting requirement
3. Filling vat of return
4. Filling of quarterly summary lists
Invoicing Requirement
1. VAT invoice for every sale, barter or exchange of goods or properties.
2. VAT official receipt for every lease of goods or properties, and for
every sale, barter or exchange of services.
Content of the VAT Invoice or Official Receipt
1. Name of Seller
2. Business Style of the Seller
3. Business Address of the Seller
4. Statement that the seller is a VAT-registered person,
followed by his TIN
5. Name of Buyer
Content of the VAT Invoice or Official Receipt
6. Business Style of the Buyer
7. Address of Buyer
8. TIN of buyer, if VAT –registered and amount exceeds
P1,000.00
9. Date of transaction
10. Quantity
Content of the VAT Invoice or Official Receipt
11. Unit Cost
12. Description of the goods or properties or nature of the
service
13. Purchase price plus the VAT
14. Authority to Print Receipt Number at the lower left corner
of the invoice or receipt
Accounting Requirement
1. Regular accounting records
2. Subsidiary sales Journal
3. Subsidiary purchase Journal
Filing of VAT Return
Who are required to file VAT returns?
• 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 aggregate amount of actual gross sales or receipts
exceeds P1,919,500
• Person required to register as a VAT taxpayer but failed to register
• Any person who imported goods, whether or not made in the course of
his trade of business.
Filing of VAT Return
Where to file that VAT return?
To the following in order of priority:
1. Authorized agent bank under the jurisdiction of the RDO/LTO where
the taxpayer (head office if the business establishment) is required to
be registered
2. Revenue collection officer
3. Duly authorized treasurer of the municipality or city
Filing of VAT Return
Deadline of filing the monthly return:
 Manual filing
(BIR Form 2550M)
-20 days from the end of the month
Filing of VAT Return
 Through electronic Filing and Payment System (eFPS)
Business Industry Period for filing Monthly VAT
declaration
Group A
Insurance and Pension
Funding
Activities Auxiliary to Financial
Intermediation 25 days following the end of the month
Construction
Water Transport
Hotels and Restaurants
Land Transport
Filing of VAT Return
 Through electronic Filing and Payment System (eFPS)
Business Industry Period for filing Monthly VAT
declaration
Group B
Manufacture and Repair of Furniture
Manufacture of Basic Metals
Manufacture of Chemicals and Chemical Products
Manufacture of Coke, Refined Petroleum & Fuel
Products
Manufacturer of Electrical Machinery & Apparatus
N.E.C.
Manufacture of Fabricated Metal Products 25 days following the end of the month
Manufacture of Food, Product & Beverages
Manufacture of Machinery & Equipment N.E.C.
Manufacture of Medical, Precision, Optical
Instrument
Filing of VAT Return
 Through electronic Filing and Payment System (eFPS)
Period for filing Monthly VAT
Business Industry declaration
Group B
Manufacture of Motor Vehicles, Trailer &
Semi-Trailer
Manufacture of Office, Accounting &
Computing Machinery
Manufacture of Other Non-Metalic Mineral
Products
Manufacture of Other Transport Equipment 25 days following the end of the
Manufacture of Other Wearing Apparel month
Manufacture of Paper and Paper Products
Manufacture of Radio, TV & Communication
Equipment /Apparatus
Manufacture of Rubber & Plastic Products
Filing of VAT Return
 Through electronic Filing and Payment System (eFPS)

Business Industry Period for filing Monthly VAT

declaration
Group B
Manufacture of Tobacco Products
Manufacture of Wood & Wood Products
Manufacturing N.E.C. 25 days following the end of the
Metallic Ore Mining month
Non-Metallic Mining & Quarrying
Filing of VAT Return
 Through electronic Filing and Payment System (eFPS)
Business Industry Period for filing Monthly VAT
declaration
Group C
Retail Sale
Wholesale Trade and Commission Trade
Sale, Maintenance, Repair of Motor
Vehicle, Sale of Automotive Fuel
Collection, Purification and Distribution of Water 23 days following the end of the month
Computer and Related Activities
Real Estate Activities
Filing of VAT Return
 Through electronic Filing and Payment System (eFPS)
Business Industry Period for filing Monthly VAT
declaration
Group D
Air Transport
Electricity, Gas, Steam & Hot Water supply
Postal and Telecommunications
Publishing, Printing & Reproduction of Recorded
Media
Recreational, Cultural & Sporting Activities 22 days following the end of the month
Recycling
Renting of Goods & Equipment
Supporting and Auxiliary Transport Services
Filing of VAT Return
 Through electronic Filing and Payment System (eFPS)
Business Industry Period for filing Monthly VAT
declaration
Group E
Activities of Membership Organization, Inc.
Health ad Social work
Public Admin & Defense Compulsory Social Security
Research and Development
Agricultural, Hunting and Forestry
Farming and Animals 21 days following the end of the month
Fishing
Other Service Activities
Miscellaneous Business Activities
Unclassified
Filing of VAT Return
Deadline of Quarterly VAT return:
BIR Form (2550Q)
- Shall be filed within 25 days from the end of the quarter.
Filing of Quarterly Summary List
Quarterly Summary List to be Submitted by All VAT Taxpayers
1. Quarterly summary lists of sales to regular buyers or customers,
casual buyers or customer and output tax.
2. Quarterly summary list of local purchases and input tax
3. Quarterly summary list of importation
Illustration
The following relate to Mr. Ander’s sales to several business and
professional customers in the previous year:
Cutomer name Purchase range Frequency of Pruchase
Danilo Aga, M.D. P 10,000 – 50,000 5 times
Benton Corporation P 200,000 1 time
John Quarezma, CPA P 80,000 – P 120,000 8 times
DEF Corporation P 10,000 – P 30,000 7 times
Content of the Quarterly Summary List of Sales
1. BIR registered name of the buyer engaged in business or profession
2. TIN of the buyer for sales subject to VAT
3. Exempt sales
4. Zero rated sales
5. Sales Subject to VAT
6. Output tax
Content of the Quarterly Summary List of
Purchases
1. BIR registered name of the supplier
2. Address of the supplier
3. TIN of the supplier
4. Exempt purchases
5. Zero-rated purchases
6. Purchase subject to VAT ( services, capital goods, and goods other than capital
goods)
7. Creditable input tax
8. Non-creditable input tax
Content of the Quarterly Summary List of
Importations

1. Import entry declaration 7. Charges release from

number Custom’s custody
2. Assessment or release order 8. Landed cost (exempt and
taxable
3. Date of importation
9. VAT paid
4. Name of supplier (seller)
10. Official receipt number
5. Country or origin
11. Date of VAT payment
6. Dutiable value
The Relief System
Reconciliation of Listing for Enforcement (RELIEF) system supports the
third party information program and voluntary assessment program of
the Bureau of Internal Revenue through the cross referencing of the third
party information with the taxpayer’s quarterly summary list of sales and
purchases.
Suspension and Temporary Closure of Business
Violations:
A. For a VAT-registered person
a. Failure to issue receipt and invoices
b. Failure to file VAT return
c. Understatement of taxable sales or receipt by 30% or more of his
correct taxable sales or receipt for the taxable quarter
B. Failure to register as taxpayer
Cancellation of VAT Registration
Illustration:

Troy Corporation requested for the cancellation of his VAT for his continuous inability to exceed
the VAT threshold after the expiration of the three-year prescriptive period. The request was
approved on May 15, 2015.

Troy recorded the following sales during May and June of 2015:
May June
1st half of the month P 100,000 P 125,000

2nd half of the month 150,000 175,000

Total P 250,000 P 300,000
Liability of a Non-VAT Person Who Issues a VAT
Invoice /Receipt
Illustration:

Mr. Andaya, a non-VAT taxpayer, reported sales of P168,000 and paid P5,000 percentage tax for
March 2015. An examination of his records revealed the following:
Total sales P 150,000
Output VAT charged 18,000
Total Invoice P 168,000

Mr. Andaya shall be Given the following penalty assessment:

Pecentage tax (P168,000 x 3%) P 150,000
Output VAT 18,000
Plus 50% surcharge (P18,000 x 50%) 9,000
Gross amount due 32,040
Less: Pecentage tax paid 5,040
Net amount due P 27,000