Revised Guidelines on the Collection of Value Added Tax (VAT) on All PHLPOST Products and Services

January 12, 2016 PHLPOST CIRCULAR NO. 16-02 SUBJECT : Revised Guidelines on the Collection of Value Added Tax (VAT) on All PHLPOST Products and Services I. RATIONALE: To clarify the procedures and reporting on the collection of Value Added Tax (VAT) on the selected sale of PHLPost goods and services. II. COVERAGE: All PHLPost products and services are subjected to Value-Added Tax (VAT). III. EFFECTIVITY: Collection of "Output" VAT is effective this month of January 2016. IV. POLICY GUIDELINES: 4.1 Postal Area Offices, Post Offices including extension Post Offices and Postal Stations shall collect VAT for the sales of PHLPost products and services. 4.2 VAT-exempt person shall be required to present updated VAT Exemption Certificate (VEC) or VAT Exemption Identification Card (VEIC) issued by the Bureau of Internal Revenue. Expired VEC and VEIC should not be honored. 4.3 Official Receipt shall be issued on vatable transactions of PHLPost. 4.4 Always require the client to provide his/her Taxpayer Account Number. 4.5 Collection and deposit of the 12% VAT shall be recorded expressly in the Corporate Fund cashbook. 4.6 Timelines on the preparation and submission of reports on VAT collections shall be strictly observed. V. ACCOUNTING PROCEDURES: A. Collecting Office/Post Office 1. The Postal teller or Cashier shall: a. Issue Official Receipt (in three copies) for the sale of PHLPost products and services. Example: On Jan. 5, sold Philatelic albums in the amount of Php10,000.00. Beginning cash balance is Php5,000.00 On Jan. 6, deposit the sale of philatelic album i. If the cost is exclusive of VAT, the particulars shall be: Particulars Amount Sale of philatelic albums Php10,000.00 + 12% VAT 1,200.00 Total Amount Payable Php11,200.00 =========== ii. If the cost is inclusive of VAT, the particulars in the OR shall be: Particulars Amount Vatable Sale of philatelic albums PhP8,928.57 + 12% VAT (Php10,000/1.12 x 12%) 1,071.43 Total Amount Payable PhP10,000.00 =========== b. Record the collections in the Postal Teller Daily Transaction Report (PTDTR). c. Remit to the Cashier or to the Postmaster the collections at the last working hour of the day. 2. The Postmaster or Cashier shall: a. Record the daily sale in the Corporate Fund cashbook (except collections for the New PID). The cashbook entries (for sales wherein VAT is included) shall be as follows: Date Particulars Debit Credit Jan. 5, Beginning balance P5,000.00 2016 Sale of Philatelic 8,928.57 album 12% VAT 1,071.43 Ending balance P15,000.00 Total P15,000.00 P15,000.00 ========= b. Record in the Postmaster's Daily Transaction Record (PMDTR) the transactions reflected in the submitted PTDTR. c. Deposit the collections in the Corporate Fund bank account following the authorized frequency of deposit. d. Record the deposit in the Corporate Fund cashbook as follows: Date Particulars Debit Credit Jan. 6, Beginning Balance P15,000.00 2016 Deposit of the vatable P8,928.57 sale Deposit of 12% VAT 1,071.43 Ending Balance 5,000.00 Total P15,000.00 P15,000.00 ========= e. Include in the Daily Sales, Collections and Deposit Report the sales of the products and services. f. At the end of the month, submit to the Accounting Section, Area Office, the Postmaster's Monthly Transaction Report (PMMTR) and Monthly Cash Accountability Report (MCAR). g. To facilitate remittance of 12% VAT withheld, at the end of the month prepare a Summary List of VATable Sales following attached format marked as PPC PO VAT Form No. 1. h. Submit soft and hard copies of the Summary List of VATable Sales to the Chief, Accounting Section, Area Office on or before 5th of the following month. B. Area Office 1. Accounting Section, Area Office a. Record Output tax depending on the type of transaction as follows: Transaction Where to Entry Record 1. Sales of goods CRDJ Cash Collecting officer 10,000.00 Upon consummation Revenue 8,928.57 of the sale (transfer Output tax 1,071.43 of ownership) and there is actual payment. 2. Sale of services or lease of goods or properties upon receipt of the payment. CRDJ Cash Collecting officer 10,000.00 a. Cash sales Revenue 8,928.57 Output tax 1,071.43 b. On account GJ Accounts Receivable 10,000.00 Revenue 8,928.57 Deferred Output tax 1,071.43 c. Payment of CRDJ Cash 10,000.00 account Accounts Receivable 10,000.00 Deferred Output tax 1,071.43 Output tax 1,071.43 b. Record the transfer of Output and Input Tax from Area Office Books to Central Office Books as follows: Transaction Entry 1. To record the transfer of Output Output Tax 1,071.43 tax Due to Central Office 1,071.43 2. To record the transfer of Input Due from Central Office xxxx.xx Tax Input tax xxxx.xx c. Verify the correctness of the figures stated in the PMMTR from the supporting schedules. d. Record in the Books of Accounts the revenues, collections and deposits made by the Postmasters. e. Maintain ledgers for each PMs and for cash, income, receivable and VAT collection. f. Monitor the deposits made by the PMs. 2. The Chief, Administration and Finance Division, Area Office shall: a. Ensure that all Postmasters and Postal Tellers are properly Oriented and trained on the collection of VAT on PHLPost products and services. b. Monitor compliance of Postmasters with these guidelines. VI. MONTHLY VAT RETURN 1. Area Office/Post Office a. To facilitate the filing of monthly VAT return, all concerned Postmasters and Accounting Section Chiefs are hereby required to submit the following documents and observe strictly the deadlines, as follows: Document From To Deadline Summary List of Concerned Area On or before the VATable Sales (PPC PO POs/Offices Accounting 5th day of the VAT Form No. 1) Office following month Consolidated Summary Area Bookkeeping On or before the List of VATable Sales Accounting Division, 10th day of the (PPC Area VAT Form Section Accounting following month No. 2) Dept., CO Summary List of Area Bookkeeping On or before the Purchases (PPC Area Accounting Division, 10th day of the VAT Form No. 3) Section Accounting following month Dept., CO b. The documents must be submitted in the prescribed form (in softcopy). Form Nos. 2 and 3 shall be submitted to the Bookkeeping Division at email address [emailprotected]. c. Delay in the submission of the required documents will not be tolerated. Any penalty incurred due to the delay shall be collected from the concerned officer/employee and if warranted, administrative action may be initiated pursuant to BIR rules and regulations. 2. Central Office The following reports shall be filed with the Bureau of Internal Revenue. a. Monthly VAT Declarations (BIR Form 2550M) and the taxes paid not later than the 20th day following the end of each month. b. Quarterly Return (BIR in Form 2550 Q) of the amount of quarterly gross sales or receipts within 25 days following the close of taxable quarter using the latest version of Quarterly VAT Return. c. Quarterly Summary List of Sales and Purchases which is attached to the quarterly return in BIR Form 2550Q. Previous issuances inconsistent herewith are hereby revoked/amended accordingly. Any clarification, comments and/or observation on this Circular shall be forwarded to the office below: The Bookkeeping division Accounting Department 5/F Manila Central Post Office Bldg. Liwasang Bonifacio 1000 Manila, Philippines Telefax Nos. + 63 2 5275408/ + 63 2 5279611 E mail Address [emailprotected] Website www.phlpost.gov.ph Strict compliance to this issuance is hereby enjoined. (SGD.) JOEL L. OTARRA Corporate Officer-in-Charge