Withholding and Remittance of Creditable Value Added Tax

July 22, 1993 BLGF MEMORANDUM CIRCULAR NO. 029-93 TO : All Bureau Officials and Personnel; Regional Directors for Local Government Finance; District Treasurers of Metropolitan Manila; Provincial, City and Municipal Treasurers; and Others Concerned SUBJECT : Withholding and Remittance of Creditable Value Added Tax For the information and guidance of all concerned, attached is a copy of Revenue Regulations No. 10-93, dated June 16, 1993, of the Bureau of Internal Revenue promulgated to govern the manner of withholding and remittance of taxes on account of payments made by the government for purchases of goods and services subject to the value-added tax (VAT), effective July 1, 1993. In pursuance of the aforesaid regulations, Provincial, City, Municipal and Barangay Treasurers and the Chief Accountants or any person holding similar position and performing similar functions in the case of National Government Offices, among others, are charged with the duty to deduct, withhold and remit the prescribed creditable value-added taxes on the sale of goods and services to the government before making any payment to the sellers thereof. Such responsibility and liability may not be delegated to subordinate official or employees and violations of the prescribed regulations shall be dealt with in accordance with the offenses therein specified. In connection therewith and pursuant to Section 9 thereof, the Regional Directors of the Bureau and the District Treasurers of Metropolitan Manila are hereby directed to submit the names of the incumbent Provincial, City and Municipal Treasurers concerned, as well as the names of the Chief Accountants of the respective Regional Offices, to the Revenue District Officer where their government office is located within thirty (30) days from the effectivity of these regulations and the names of the replacements for any change of such incumbents within fifteen (15) days from such change or replacement. Accordingly, the Regional Directors of this Bureau are hereby further enjoined to coordinate with the BIR Regional Directors in their respective localities to ensure effective implementation of these regulations. Strict observance and compliance with the provisions of the aforestated Revenue Regulations No. 10-93 are hereby enjoined. The District Treasurers of Metropolitan Manila and all Provincial Treasurers are hereby instructed to disseminate the contents of this Circular, including the attachments, to all Municipal Treasurers within their respective jurisdictions. LORINDA M. CARLOS Executive Director