Providing Transitory Provisions for the Implementation of the Quarterly Filing of VAT Returns Starting January 1, 2023

January 3, 2023 REVENUE MEMORANDUM CIRCULAR NO. 5-2023 SUBJECT : Providing Transitory Provisions for the Implementation of the Quarterly Filing of VAT Returns Starting January 1, 2023 Pursuant to Section 114 (A) of the National Internal Revenue Code of 1997 (Tax Code), as Amended by Republic Act (R.A.) No. 10963, Otherwise Known as the "Tax Reform for Acceleration or Inclusion" or the "TRAIN Law" TO : All Internal Revenue Officers and Others Concerned This is in line with Section 37 of R.A. No. 10963 or the "TRAIN Law," amending certain provisions of Section 114 (A) of the Tax Code of 1997, as amended, and as implemented under Section 4-114-1 (A) of Revenue Regulations (RR) No. 13-2018, which provided that " beginning January 1, 2023, the filing and payment required under this Subsection shall be done within twenty-five (25) days following the close of each taxable quarter ." In this regard, VAT-registered taxpayers are no longer required to file the Monthly Value-Added Tax Declaration (BIR Form No. 2550M) for transactions starting January 1, 2023 but will instead file the corresponding Quarterly Value-Added Tax Return (BIR Form No. 2550Q) within twenty-five (25) days following the close of each taxable quarter when the transaction transpired. In order to avoid confusion during the initial implementation thereof, particularly for taxpayers that are under fiscal period of accounting, the following transitory provisions are hereby provided: Quarter Ending Transactions Covering the Month of Filing of 2550Q for the Quarter Ending December 2022 January 2023 February 2023 December 2022 January 2023 February 2023 January 31, 2023 Required to file 2550M not later than January 20, 2023 Not applicable Not Required to File 2550M Not applicable Required to file 2550Q not later than February 27, 2023* Not applicable February 28, 2023 Required to file 2550M not later than January 20, 2023 Not Required to File 2550M Not applicable Not applicable Not applicable Required to file 2550Q not later than March 27, 2023* March 31, 2023 Not applicable Not Required to File 2550M Not Required to File 2550M Required to file 2550Q not later than January 25, 2023 Not applicable Not applicable Note: * Note that the 25th day deadline falls on a Saturday All concerned are hereby enjoined to be guided accordingly and give this Circular as wide a publicity as possible. (SGD.) ROMEO D. LUMAGUI, JR. Commissioner of Internal Revenue