Prescribing the Procedures in the Manner of Filing of VAT and PT Returns and Payment of Taxes Due Thereon of Taxpayers

August 10, 2002 REVENUE MEMORANDUM CIRCULAR NO. 30-02 SUBJECT : Prescribing the Procedures in the Manner of Filing of Value-Added Tax (VAT) and Percentage Tax (PT) Returns and Payment of Taxes Due Thereon of Taxpayers under Revenue District Office (RDO) No. 24-City of Valenzuela, Revenue Region No. 5 Valenzuela TO : All Internal Revenue Officers and Others Concerned SECTION 1 . Background. The Bureau of Internal Revenue (BIR) is re-engineering its work processes in order to improve the filing and payment process with Authorized Agent Banks (AABs), provide efficient and convenient service to taxpayers, strengthen control over tax collections, utilize fully the technology and facilitate the recording of taxpayers return and payment data. SECTION 2 . Coverage. This circular covers only AABs, and taxpayers registered or required to register, in RDO 24, City of Valenzuela for the filing and payment of VAT and PT Returns. SECTION 3 . Manner of Filing and Payment for tax returns WITH PAYMENT. Under the "pay-as-you-file" principle, payment of taxes, shall be made within the banking hours of the day the return was filed. However, no penalties shall be imposed for taxpayers who filed earlier and paid at later date but on or before the due date of the applicable tax. Hence, a separation of filing of tax returns and payment of taxes to AABs shall be implemented. Taxpayers are provided with several options in filing and payment of taxes such as: e-filing/e-payment, e-filing/manual payment, manual filing/manual payment. For taxpayers who will choose manual filing/manual payment are given the following options: Option 1 File the tax return and Tax Payment Advice (TPA) with the RDO and pay to the AAB; Option 2 Pay to the AAB and drop tax return together with the validated TPA in the secured Drop Box located at the AAB premises Taxpayers, however, who shall pay taxes fully/partially through TDM and cash/check can only choose Option 1. 3.1 Procedures for Option 1 File the tax return and Tax Payment Advice (TPA) with the RDO and pay to the AAB: The Taxpayer shall: 1. Secure BIR Form/s 2550M/2550Q for VAT, 2551M/2551 for PT and pre-numbered TPA/s (Annex "A") from the Taxpayer Service Section (TSS), RDO; 2. Fill out the tax return and the TPA in triplicate; 3. File tax return and the TPA with the RDO and receive the duly acknowledged triplicate copy of the tax return and the original and triplicate copy of the TPA; 4. Present the original and triplicate copy of the TPA to the AAB and pay the tax due thereon; and 5. Receive from the AAB the duly validated triplicate copy of TPA and the original copy of bank Official Receipt. The Taxpayer Service Section (TSS) of the RDO shall: 1. Provide taxpayers the requested BIR Form/s 2550M/2550Q for VAT, 2551/2551 for PT and pre-numbered TPA/s; 2. Receive, pre-screen, stamp "RECEIVED", affix initial and indicate date of receipt on the tax return and TPA; 3. Return to taxpayer the duly acknowledged triplicate copy of tax return as well as the original and triplicate copy of the TPA; 4. Retain original and the duplicate copy of tax return as well as the duplicate copy of the TPA; 5. Instruct taxpayer to present only the original and triplicate copy of the TPA to AAB; 6. Sort, classify and batch tax returns received in 50's or less according to tax and form types on a daily basis; 7. Prepare, assign control number and forward transmittal list together with the original and duplicate copies of the tax returns as well as the duplicate copies of TPAs to RPS Pre-Processing, Document Processing Section; and 8. File and arrange chronologically received copy of transmittal list. The Authorized Agent Bank shall: 1. Receive payment, validate and initial the original and triplicate copy of TPA; 2. Issue bank Official Receipt 3. Return the duly validated triplicate copy of TPA and furnish the original copy of the bank Official Receipt to the taxpayer; 4. Segregate TPAs from other tax returns received such as 1702Q, 1601, etc.; 5. Encode the taxpayer's payment data using Limited Bank Data Entry System (LBDES) and transmit the same to Revenue Data Center (RDC); and 6. Prepare separate Batch Control Sheets (BCS-A) of TPAs with BIR stamped "RECEIVED" (Option 1) from the BCS-A of other tax returns not included in this pilot process. The Collection Section of the RDO shall: 1. Retrieve BCS-A with validated original copies of the TPAs from AABs every Tuesday; 2. Check completeness of the attached TPAs against BCS-A; 3. Follow the procedures set forth in the proposed RMO for processing of the tax returns and TPAs; 3.2 Procedures for Option 2 Pay to the AAB and drop tax return together with the validated TPA in the secured drop box located at the AAB premises: The Taxpayer shall: 1. Secure BIR Form/s 2550M/2550Q for VAT, 2551M/2551 for PT and pre-numbered TPA/s from TSS, RDO; 2. Fill out the tax return and TPA in triplicate; 3. Present all copies of TPA to the AAB and pay the amount due; 4. Receive the duplicate and triplicate copy of the validated TPA and the original copy of bank Official Receipt; 5. Staple the duplicate copy of the validated TPA to the original and duplicate copy of the tax return. Drop the same to the secured drop box located at the AAB premises. 6. Retain the triplicate copy of duly validated TPA and attach the same to the triplicate copy of the tax return. The duly validated TPA shall serve as proof of payment of tax; and 7. Receive from the RDO confirmation letter within thirty (30) days from payment of tax, which shall serve as evidence of filing and payment. The Authorized Agent Bank shall: 1. Receive payment, validate, and initial the TPA; 2. Issue bank Official Receipt; 3. Return the duplicate and triplicate copy of the validated TPA and furnish the original copy of the bank Official Receipt to the taxpayer; 4. Instruct the taxpayer who selected Option 2 (TPA without BIR stamped "RECEIVED") to attach the duplicate copy of the validated TPA to the original and duplicate copy of the tax return and drop the same in the secured drop box located at the AAB premises; 5. Segregate the TPAs from other tax returns received such as 1702Q, 1601, etc.; 6. Encode taxpayer's payment data using LBDES and transmit the same to the RDC; and 7. Prepare a separate BCS-A of TPAs for Option 2, BCS-A for Option 1, and another BCS-A for other tax returns. The Taxpayer Service Section (TSS) of the RDO shall: Release to taxpayers the BIR Forms 2550M/2550Q for VAT, 2551M/2551 for PT and pre-numbered TPA/s. The Collection Section of the RDO shall: 1. Retrieve daily the original and duplicate copies of the tax returns with the attached TPA from the secured drop boxes located at AABs premises; 2. Check the completeness of the tax returns and TPAs retrieved from the drop boxes; 3. Stamp "RECEIVED" and indicate the date of payment as appearing on the attached TPA on all retrieved tax returns; 4. Sort, classify, and batch tax returns received in 50's or less according to tax and form types on a daily basis; 5. Prepare, assign control number and forward transmittal list together with the tax returns and validated TPAs retrieved from the drop boxes to the Receipt and Control-Data Controller; 6. Retrieve BCS-A with validated original copies of TPAs from AABs every Tuesday; 7. Check completeness of the attached TPAs against BCS-A; 8. Follow the procedures set forth in the proposed RMO for processing of the tax returns and TPAs. SECTION 4 . Manner of filing of tax returns with NO PAYMENT . The Taxpayer shall: 1. Secure BIR Form/s 2550M/2550Q for VAT, 2551M/2551 for PT from the TSS, RDO; 2. Fill out the tax forms; 3. File the tax returns with the RDO; and 4. Receive the duly acknowledged triplicate copy of the tax return. The Taxpayer of Service Section (TSS) of the RDO shall: 1. Provide taxpayers the requested BIR Form/s 2550M/2550Q for VAT, 2551M/2551 for PT; 2. Receive, pre-screen, stamp "RECEIVED", affix initial and indicate the date of receipt on the tax return; 3. Return to the taxpayer the duly acknowledged triplicate copy of tax return; 4. Retain the original and duplicate copy of tax return; 5. Write "SP" on the upper right hand corner of the tax returns; 6. Sort, classify and batch tax returns received in 50's or less according to tax and form types on a daily basis; 7. Prepare, assign control number and forward transmittal list together with the original and duplicate copies of the tax returns to the RPS Pre-processing, Document Processing Section; and 8. File and arrange chronologically received copy of transmittal list. SECTION 5 . Manner of filing of tax returns FULLY PAID through Tax Debit Memo (TDM) . The Taxpayer shall: 1. Secure BIR Form/s 2550M/2550Q for VAT, 2551/2551 for PT from the TSS, RDO; 2. Fill out the tax forms; 3. File application for TDM together with the original copy of the Tax Credit Certificate (TCC) in the Collection Service, National Office; 4 File the tax returns with TDM at the RDO; and 5. Receive the duly acknowledged triplicate copy of the tax return and the duplicate copy of the TDM. The Taxpayer Service Section (TSS) of the RDO shall: 1. Provide taxpayers the requested BIR Form/s 2550M/2550Q for VAT and 2551M/2551 for PT; 2. Receive and pre-screen tax return; 3. Check completeness and authenticity of the TDM by verifying from the Collection Service or other issuing office; 4. Stamp "RECEIVED", affix initial and indicate the date of receipt on the tax return and TDM; 5. Return to the taxpayer the duly acknowledged triplicate copy of tax return and the duplicate copy of the TDM; 6. Retain the original and duplicate copy of tax return as well as the original copy of TDM; 7. Sort, classify and batch tax returns received in 50's or less according to tax and form types on a daily basis; 8. Prepare a separate transmittal list for returns fully paid through TDM; 9. Assign control number and forward transmittal list together with the original and duplicate copies of the tax returns and the original copies of TDM to the Collection Section for encoding of payment data; and 10. File and arrange chronologically received copy of transmittal list. SECTION 6 . Manner of filing of tax returns with PARTIAL PAYMENT in cash/check and TDM/CM . The Taxpayer shall: 1. Secure BIR Form/s 2550M/2550Q for VAT, 2551/2551 for PT and pre-numbered TPA/s from the TSS, RDO; 2. Fill out the tax forms and TPA. Reflect in the TPA only the balance of taxes due after applying the TDM; 3. File application for TDM together with the original copy of the Tax Credit Certificate (TCC) in the Collection Service, National Office; 4. File the tax returns with TDM and TPA at the RDO; 5. Receive the duly acknowledged triplicate copy of the tax return, the duplicate copy of the TDM and the original and triplicate copy of the TPA; 6. Present the original and triplicate copy of the TPA to the AAB and pay the tax due thereon; and 7. Receive from the AAB the duly validated triplicate copy of TPA and the original copy of bank Official Receipt. The Taxpayer Service Section (TSS) of the RDO shall: 1. Provide taxpayers the requested BIR Form/s, 2550M/2550Q for VAT, 2551M/2551 for PT and pre-numbered TPA/s; 2. Receive and pre-screen tax return and TPA; 3 Check completeness and authenticity of the TDM by verifying from the Collection Service or other issuing office; 4. Stamp "RECEIVED", affix initial and indicate the date of receipt on the tax return, TPA, and TDM; 5. Return to the taxpayer the duly acknowledged triplicate copy of tax return, the duplicate copy of the TDM and the original and triplicate copy of the TPA; 6. Retain the original and duplicate copy of tax return and the original copy of TDM and the duplicate copy of the TPA; 7. Instruct taxpayer to present only the original and triplicate copy of the TPA to AAB; 8. Sort, classify and batch tax returns received according to tax and form types on a daily basis; 9. Prepare a separate transmittal list for returns fully paid through TDM; 10. Assign control number and forward transmittal list together with the original and duplicate copies of the tax returns, duplicate copies of the TPAs, the original copies of TDM and the duplicate copies of TPAs to the Collection Section for encoding of payment data; and 11. File and arrange chronologically received copy of transmittal list. The Authorized Agent Bank shall: 1. Receive payment, validate and initial the original and triplicate copy of TPA; 2. Issue bank the corresponding Official Receipt 3. Return the duly validated triplicate copy of TPA and furnish the original copy of the bank Official Receipt to the taxpayer; 4. Segregate TPAs from other tax returns received such as 1702Q, 1601, etc.; 5. Encode the taxpayer's payment data using Limited Bank Data Entry System (LBDES) and transmit the same to Revenue Data Center (RDC); and 6. Prepare separate Batch Control Sheets (BCS-A) of TPAs with BIR stamped "RECEIVED" (Option 1) from the BCS-A of other tax returns not included in this pilot process. SECTION 7 . Effectivity . This Circular shall take effect immediately. (SGD.) REN G. BAEZ Commissioner of Internal Revenue