Optional Filing and Payment of Monthly VAT Returns (BIR Form No. 2550M) for VAT-Registered Persons

On 10 May 2023, the Bureau of Internal Revenue (“BIR”) issued Revenue Memorandum Circular (“RMC”) No. 52-2023 to provide guidelines regarding the optional filing and payment of monthly Value-Added Tax (“VAT”) Returns using BIR Form No. 2550M for VAT-registered individuals.

To simplify VAT filing, the Tax Reform for Acceleration and Inclusion Law, specifically Section 37, amended the National Internal Revenue Code of 1997 (“Tax Code”). With this amendment, VAT-registered taxpayers are no longer obligated to file monthly VAT returns through BIR Form No. 2550M. Instead, they are required to file the corresponding quarterly VAT return through BIR Form No. 2550Q within 25 days after the end of each taxable quarter. However, despite these changes, some taxpayers have expressed their desire to continue filing their VAT returns and pay the corresponding VAT monthly, using BIR Form No. 2550M.

Guidelines on the Optional Use of BIR Form No. 2550M

Taxpayers will now have the option to continue filing and paying VAT on a monthly basis using BIR Form No. 2550M.

The existing procedures and guidelines stated in Revenue Regulation Nos. 16-2005, 6-2014, RMC No. 68-2005, and other relevant revenue issuances concerning the use of BIR Form No. 2550M will continue to apply.

Note that switching between monthly filing through BIR Form No. 2550M and quarterly filing through BIR Form No. 2550Q will not cause any penalties. However, for those that will opt for quarterly filing, BIR Form No. 2550Q must be filed and VAT payments must be made within the specified period of 25 days after the end of each taxable quarter. This is unlike in the case of monthly filing through BIR Form No. 2550M, where there is no prescribed deadline.

This flexibility aims to provide convenience to VAT-registered individuals while ensuring compliance with the Tax Code’s VAT filing and payment requirements.