VAT collections up 20% in 2022
THE Bureau of Internal Revenue (BIR) said on Monday that it collected P463 billion in value-added tax (VAT) in 2022, up 20%.
The BIR said in a statement that VAT accounted for 20% of all collections last year, adding that going forward, the shift to quarterly filing of VAT returns will afford taxpayers relief from the former system of monthly filing.
“The luxury of filing quarterly VAT returns, instead of monthly, carries with it the obligation of strict compliance. We will monitor all quarterly VAT returns. No extensions,” BIR commissioner Romeo D. Lumagui, Jr. said.
Revenue Memorandum Circular No. 5 – 2023, removed the monthly requirement to file VAT Returns.
The BIR hopes to collect P2.6 trillion in revenue this year. If the target is achieved, it would represent an 11% rise against actual collections of P2.34 trillion in 2022.
The VAT filing deadline for the first quarter is April 25.
“VAT contributes heavily to the economy and to the prioritized projects of the government. Which is why we are encouraging everyone to report and pay the exact value-added tax amount on or before April 25, 2023,” Mr. Lumagui said.
He added that the BIR had already issued reminders for the filing of VAT returns in January, in addition to the Tax Reform for Acceleration and Inclusion Law which mandates the simplification of VAT return filings and payments.
“We only wish to remind the public that we will not hesitate to impose penalties to individuals or companies that cannot file their VAT returns at the deadline,” Mr. Lumagui said.
He warned against the practice of falsifying transactions to artificially lower taxable earnings.
Any individual or corporate taxpayer with any form of business with actual gross sales or receipts exceeding the P3 million threshold is required to file returns and pay VAT on a quarterly basis. — Aaron Michael C. Sy