Manual VAT Information System (VATIS)

September 11, 1992 REVENUE MEMORANDUM ORDER NO. 37-92 SUBJECT : Manual VAT Information System (VATIS) TO : All Internal Revenue Officers and Others Concerned I. BACKGROUND AND OBJECTIVES: The computerized Value-Added Tax Information System (VATIS) is now being tested in two pilot districts namely, RDO No. 31 (Mandaluyong and San Juan) and RDO No. 24 (Quiapo, Sampaloc and San Miguel) and is expected to be installed in other districts by 1994. While VATIS is being piloted in two (2) districts, there is a need for the other 95 districts to be following a set of manual procedure parallel to the computerized VATIS. This order is therefore issued to provide guidelines for establishing a manual VATIS in the Revenue District Offices in order to: A. Lay the grounds in preparation for a nationwide computerized VATIZ; B. Maintain a record of VAT filers and identify the non-filers/stop-filers immediately; C. Monitor VAT returns filed and VAT payments received; D. Provide a filing system for VAT returns for easy reference and retrieval of data and for safeguard against loss of such returns; E. Standardize the use of the ledger card in the RDOs in recording and monitoring VAT activities of the taxpayer. II. GUIDELINES AND PROCEDURES: A. Every RDO shall keep and maintain the following for VAT registered taxpayers: 1. Record/Logbook of Approved Application for VAT Registration (BIR Form 2550-1), Annex A; 2. Alphabetically arranged VAT Taxpayer's Ledger Cards, (Annex B); and 3. VAT returns folder for each VAT Taxpayer B. The Record/LogBook of All Approved Applications (per RMO No. _____) shall contain columns for the following: 1. Sequentially arranged VAT Control Number 2. Effective Date of Registration (Date of Approval) NOTE: Effective Date of Registration of a person whose business was previously registered as Non-VAT under Sec. 103 (W) who becomes liable to VAT upon exceeding P200,000.00 during any 12-month following the close of the thirty (30) day period within which he has to registered. Otherwise, the date of approval of the application shall be the effective date of registration. 3. Initial Date of Filing 4. Taxpayer Identification Number 5. Registered Name of VAT Taxpayer, Principal Place of Business cd 6. Business Name, if different from Registered Name 7. Remarks (such as transferred to, cancelled, etc.) Said record/logbook shall be updated daily and shall include newly approved applications only. C. The VAT Taxpayer's Ledger Cards shall be maintained for every VAT registered taxpayer's record in the prescribed format (Annex A), to be arranged alphabetically by quarter filing code. VAT registered taxpayers prior to this memorandum shall be provided with new VAT Taxpayer's Ledger Cards by attaching therein the previous index cards of the said VAT registrants. The VAT Taxpayer's Ledger Cards shall consist of three parts, namely: Part I: Voluntary Compliance - Year/Quarter - Gross Sales/Receipt - Output Tax - Input Tax - VAT Due/Excess Input Tax - Surcharge/Interest/Compromise Penalty (S/I/CP) - Total Amount Paid - Date Paid - BCS No./Bank Code/ROR No./TDM No. Part II: Assessment and Collection from Audit and Investigation - Period Covered - Discrepancy - Deficiency VAT - S/I/CP - Total Amount Paid - Date Paid - BCS No./Bank Code/ROR No./TDM No. Part III: Monitoring Activities This part shall consist of five columns which shall indicate the following: Particulars - filing without payment - late filing without payment of penalties - late filing without payment of increments - non-submission of summary of sales and purchases - no filing of return, Quarter - quarters covered by the transactions Action Taken - actions taken by the RDO with regard to violations indicated in Particulars, Date - date the action was undertaken and Result - result of the action undertaken. D. The Ledger Cards shall be the basis for the preparation of the monthly Summary of VAT Assessment and Collection from Investigation (Annex C) to be submitted to VAT Division as prescribed under RMO 23-89. Hence, said Ledger Cards must be updated within ten (10) days from the last day of filing VAT returns and immediately upon submission of the Enforcement Officer's Audit Report on Value-Added Tax (BIR Form No. 1717V), Annex D. cd i E. The practice of sending Reminders Letters to stop-filers/non-filers as prescribed in RMO 25-92 shall still be followed. F. The VAT Returns folder of each VAT taxpayer shall be prepared in the following manner: 1. Indicate on the flap of the folder the VAT Control Number (based on the taxpayer's approved BIR Form 2550-1) before the name of the VAT Taxpayer. 2. File in the aforementioned folder all returns received (only those indicated/assigned with Document Locator Number in accordance with RMO 25-92) including all related communications and documents. 3. Arrange all Returns Folders alphabetically and by quarterly filing code. G. All investigating groups/units/branches/divisions in the Regional/National Office shall furnish the RDO concerned with the results of its investigation on VAT taxpayers falling within the jurisdiction of said RDO by transmitting a copy of the audit report within ten (10) days upon approval thereof. H. The VAT Division, National Office shall form teams to monitor compliance of this order. III. EFFECTIVITY: This Order shall take effect immediately upon approval. (Sgd.) JOSE U. ONG Commissioner of Internal Revenue