Philippines Changes VAT Return Filing Frequency

February 13, 2023

The Bureau of Internal Revenue (BIR) introduced a VAT return simplification for taxpayers in the Philippines.

Timeline

Beginning January 1st, 2023, liable taxpayers should submit their VAT returns quarterly.

Impact

Instead of monthly filing, beginning January 1st, 2023, liable taxpayers are obliged to file their VAT returns quarterly after the amendment of Revenue Regulation No. 13-2018. 

The transitional rules for the change are provided in Revenue Memorandum Circular No.5 of 2023. It states that taxpayers are no longer obliged to file the monthly VAT return form (BIR Form No. 2550M), except for transactions that were still carried out during December 2022. 

Based on Revenue Regulation No. 13-2018, every person liable to pay VAT must file the quarterly return within 25 days following each taxable quarter. The taxable quarter is synchronized with the income tax quarter of the taxpayer; it could be a calendar or fiscal quarter. The BIR Form No.2550Q is to be used for filing quarterly returns. 

The VAT payment deadline is the same as the VAT return deadline.

How Fonoa Can Help

Fonoa is a global tax automation and compliance solution that helps companies streamline the entire transactional chain so they can scale in a digital, borderless economy. Automate tax determination, minimize risk, and easily handle local tax compliance from one platform, which includes:

Tax Returns: Automatically prepare, review and submit VAT/GST returns everywhere your business has to. Assess the accuracy of your returns, eliminate errors, and get notified of potential issues automatically. 

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Aleksandar Delińá
Tax Researcher

Aleksandar Delic is a Tax Research Analyst at Fonoa, and previously worked as a Business Analyst in New Black BV’s Compliance department. Based in Novi Sad in the Republic of Serbia, Aleksandar joined Fonoa for the opportunity to work with a team of highly skilled TaxTech experts and make a real impact on the industry. Fun fact: If he could open any kind of business, it would be a pizzeria that serves delicious pies using only the freshest ingredients imported directly from Italy. Mangia!