Prescribing the Procedures for Processing of Application and Registration of Non-VAT Taxpayers and the Use of BIR Forms 2551-1, 2551-2 P and 2551-2 B

January 11, 1989 REVENUE MEMORANDUM ORDER NO. 03-89 SUBJECT : Prescribing the Procedures for Processing of Application and Registration of Non-VAT Taxpayers and the Use of BIR Forms 2551-1, 2551-2 P and 2551-2 B TO : All Internal Revenue Officers and Others Concerned I. Objective: This order is issued to ensure proper and full compliance with the requirements prescribed under Revenue Regulations No. 6-88 dated December 8, 1988, provide the guidelines for the registration of Non-Vat taxpayers, and the use of BIR forms enumerated hereunder: casia 1. BIR Form 2551-1 (Application for Business Registration of Non-VAT Taxpayer) 2) BIR Form 2551-2 P (Registration Certificate for Principal Place of Business) 3) BIR Form 2551-2 B (Registration Certificate for Branches of Non-VAT Taxpayers) II. Guidelines: A. All Non-VAT taxpayers required to register under Revenue Regulations No. 6-88 dated December 8, 1988 shall file their Application for Business Registration of Non-VAT Taxpayer (BIR Form 2551-1) with the Revenue officer of the city or municipality where the principal place of business is located. B. The corresponding Registration Certificate (s) for Non-VAT Taxpayer (BIR Forms 2551-2 P and 2551-2 B) and Registration Sticker (s) shall be issued upon approval of registration. These documents shall be posted or exhibited in a conspicuous place of the taxpayer's business establishment. C. Accountability : The Non-Vat Registration Certificates (s) (BIR Forms 2551-2 P and 2551-2 B) are accountable forms, and as such shall be governed by the provisions of RMO 17-75, as amended. III. Procedures in Processing Applications: A. The Revenue District Officer concerned shall: 1. Receive original and duplicate copies of the Application for Business Registration of Non-VAT Taxpayer; 2. Assign application number, indicate date of receipt and fill up claim stub with all the appropriate information after ascertaining that the form has been properly accomplished; 3. Record in the logbook, maintained exclusively for non-VAT taxpayers, the name and business address of applicant, date of receipt and application number; 4. Give the claim stub of the original copy of application to taxpayer and advise him to return on a date not exceeding 30 days from the date of application, to claim the Non-VAT Registration Certificate (s) and Registration Sticker (s); 5. Assign registration number which shall consist of six digits starting with "000001" preceded by the classification code (NV for Non-VAT), Revenue Region, and Revenue District Codes and followed by branch number. aisa dc Example: For Principal place of business located in North, Q.C. NV-4B1-30-000001 For Branch No. 1 located in North, Q.C. NV-4B1-30-000001-1 For Branch No. 2 located in East Makati, M.M. NV-4B1-30-000001-2 Indicate the Non-VAT Registration Number on the original and duplicate copies of the application form; 6. Release the original copy of the application form to the taxpayer and send the duplicate to the Revenue Computer Center (RCC) for processing. 7. In the case of transferees, notify the Revenue District Office where the person was previously registered of the transfer so that the old registration number of the transferee can be cancelled. 8. Issue the Non-VAT Registration Certificate and Registration Sticker for the head office and each branch if any as follows: a) BIR Form 2551-2 P (Registration Certificate for Principal Place of Business) - to be prepared in duplicate distributed as follows: Original Taxpayer Duplicate Revenue District Office b) BIR Form 2551-2 B (Registration Certificate for Branches) - to be prepared in quadruplicate distributed as follows: Original Branch copy Duplicate Taxpayer's Principal place of business Triplicate Revenue District Office of the place where the branch is located and Quadruplicate Issuing Revenue District Office 9. Receive from Revenue Computer Center (RCC) the duplicate copy of the Application form together with the computer generated reports on Non-VAT taxpayers. B. Revenue Computer Center (RCC) Shall: 1. Receive duplicate copy of the application form from Revenue District Office. 2. Generate an alpha list of Non-VAT registered taxpayers, alphabetic as well as numeric, which will show the name of taxpayer, registration number and lines of business and kinds of products/services rendered. 3. Send back the duplicate of the application form with alpha list to the Revenue District office concerned. 4. Maintain a master file of all Non-VAT registrants. IV. Effectivity: This order shall take effect immediately. (SGD.) JOSE U. ONG Commissioner of Internal Revenue ATTACHMENT GUIDELINES AND INSTRUCTIONS (BIR Form 2551-1) 1. WHO SHALL FILE - This application form shall be filed in duplicate by the following persons engaged in business: (a) Persons subject to 2% tax under Sec. 112 of the Tax Code; (b) VAT-exempt persons under Section 103 (a), (b), (c) and (f) of the National Internal Revenue Code who did not opt to register as VAT taxpayers; (c) Persons subject to other percentage tax under Title V of the Tax Code; (d) Persons whose VAT registrations have been cancelled pursuant to Sec. 107 (e) of the Tax Code; and (e) Persons subject to excise tax under Title VI of the Tax Code and who are not subject to VAT. 2. WHEN AND WHERE TO FILE (a) This application form shall be filed within 10 days from the date of commencement of the business with the Revenue District Officer, or any other authorized officer of the Bureau of Internal Revenue where the principal place of business is located. (b) Persons transferring their principal place of business to another Revenue District or whose VAT registration has been cancelled shall likewise file their application for registration within 10 days from the date of transfer or cancellation, as the case may be. (c) If the person is engaged in more than one line of business or has branches in different places, he shall file only one application for registration with the internal revenue officer where his principal place of business is located indicating therein all lines of business as well as the location of the branches. cd i Persons already engaged in business prior to the effectivity of Revenue Regulations No. 6-88 dated Dec. 8. 1988 and who are required to register as Non-VAT Taxpayer shall register on or before January 31, 1989. 3. PENALTY - Taxpayers required to register his business pursuant to the provisions of Revenue Regulations No. 6-88 dated Dec. 8, 1988 and who failed to do so shall upon conviction be fined in a sum of not more than one thousand pesos or imprisonment of not more than six months, or both.