Revenue Memorandum Order No. 03-90

January 2, 1990 REVENUE MEMORANDUM ORDER NO. 03-90 SUBJECT : Ocular Inspection of Business Premises of VAT Applicants TO : All Internal Revenue Officers and Others Concerned After two years of implementing the value-added tax system, it has been reported that many of those who applied for VAT registration and which were issued Certificate of Registration did not file their VAT returns nor pay value-added taxes. Verification of these non-filing taxpayers show that they are either fictitious or operating their businesses illegally or surreptitiously, and they may have generated undue input tax credits. acd In order to prevent the recurrence of such transactions and to protect revenue, all Revenue District Officers are henceforth instructed to cause to be conducted ocular inspection of the business premises (factory, stores, and offices) of applicants for VAT registration and to take such other precautionary steps as may be necessary before approving applications and issuing the Certificates of VAT Registration. The necessary ocular inspection should be done within five (5) working days from the date of the filing of the application for registration. To ensure that the required ocular inspection is truly done, the revenue enforcement officer who is assigned to conduct such inspection should state in his report to the Revenue District Officer, among others, the following information: complete name and address of the taxpayer, offices and branches inspected, person interviewed or who gave the information. cd i Strict compliance herewith is enjoined. (SGD.) JOSE U. ONG Commissioner of Internal Revenue