The Bureau of Internal Revenue (BIR) has allowed the monthly filing and payment of value added tax (VAT) for registered taxpayers in a bid to further improve the tax collection efforts of the agency.
The BIR decision made the filing flexible amid the mandated quarterly submission of returns specified in the Tax Reform for Acceleration and Inclusion Law.
"Taxpayers have the option to file and pay their VAT on a monthly basis with no penalties to improve our goal of excellent taxpayer's service," said BIR Commissioner Romeo D. Lumagui, Jr. after issuing Revenue Memorandum Circular No. 52-2023.
The circular stated that VAT taxpayers who wish to switch from quarterly to monthly filing or vice versa will not be subjected to penalties.
However, Lumagui said the filing of BIR Form 2550Q and payment of VAT must still be completed within twenty-five days following the end of each taxable quarter.
On the other hand, no deadline has been prescribed for BIR Form 2550M used in the filing of monthly returns.
While allowing the monthly filing option, the BIR chief issued a stern warning against tax dodgers who may attempt to exploit the leniency.
"The BIR is a fair agency and taxpayers must not take advantage of our leniency by using fake transactions in your VAT returns," Lumagui added.
He said he has already instructed the National Task Force - Run After Fake Transactions to audit suspected VAT cheaters so that appropriate criminal charges can be filed against them.