Updating the List of Taxpayers Subject to the Proposed Value Added Tax

June 11, 1987 REVENUE MEMORANDUM ORDER NO. 13-87 SUBJECT : Updating the List of Taxpayers Subject to the Proposed Value Added Tax TO : Regional Directors, Revenue District Officers, and Others Concerned Background and Purpose In compliance with RMO 8-87 dated April 7, 1987 field offices have submitted as of this date a listing of 40,660 potential Value Added Tax (VAT) Registerable Taxpayers. This number which is not even 10% of the 500,000 business taxpayers listed during the surveys conducted in 1984 and 1985 is way below the original estimate of 125,000 potential VAT registerable taxpayers based on the results of the surveys conducted by the same field offices. In view thereof, this Revenue Memorandum Order is issued to prescribe procedures to validate the listings already submitted and to identify additional potential registerable VAT taxpayers. Sources of Data In addition to the data sources listed in RMO 8-87 dated April 7, 1987, the Alpha Listing of business taxpayers distributed to the RDOs based on their surveys shall be utilized extensively. Procedures Identification of Potential VAT Registerable - Taxpayers 1. Pick out from the Alpha listing of business taxpayers, potential VAT registrants. 2. Compare with the list of potential VAT taxpayers submitted in compliance with RMO 8-87. 3. Determine whether or not the potential VAT taxpayers selected in No. 1 not appearing in the List of Potential VAT Registrants submitted under RMO 8-87 should be included in the list by referring to other sources of data available in the District. aisa dc The following procedures may be followed: a. Wherever or whenever applicable, cross check with listings in the yellow pages of the telephone directory. b. If the names of the taxpayers are listed in the telephone directory but are not in the list of taxpayers submitted as required in RMO 8-87 determine from your records if the taxpayer has filed an income tax return, a fixed tax return or any percentage tax return. c. If no return was filed or if the return filed shows sales of less than P100,000.00, make a rough estimation of the taxpayer's daily sales based on its product line so as to arrive at an estimated annual sales. The resulting figure would determine if the taxpayer, is a potential VAT registrant. d. If the results indicate that the taxpayer is a potential VAT Registrant he/it should be included in the list. e. In preparing the additional list care should be taken to prevent: 1) Duplication in listings submitted by to or more adjacent Revenue District Offices; and 2) Listing of taxpayers exempt from VAT. 4. Prepare the additional list of Potential VAT Taxpayers in the same format required under RMO 8-87 and transmit the same to the office of DCIR Victor Deoferio, Jr. not later than July 31, 1987. cdt 5. Revenue District Officers shall exhaust all resources at their command and employ such other procedures applicable within their respective jurisdictions to come up with a complete and accurate listing of potential VAT taxpayers which shall be the basis for sending out Application For VAT Registration forms scheduled to begin on August 1, 1987. Effectivity This Order takes effect immediately. (SGD.) BIENVENIDO A. TAN, JR. Commissioner