BIR Releases Transitory Provisions for the Implementation of the Quarterly Filing of VAT Returns Starting 1 January 2023

To implement Section 114(A) of the National Internal Revenue Code, as amended by Republic Act No. 10963 or the TRAIN Law, the Bureau of Internal Revenue (“BIR”) released Revenue Memorandum Circular No. 5-2023 (“RMC 5-2023”) which provides for the schedule of initial implementation of quarterly filing of value-added tax (“VAT”) returns.

Under RMC 5-2023, VAT-registered taxpayers are no longer required to file the Monthly VAT Declaration or BIR Form No. 2550M for transactions starting 1 January 2023. Instead, VAT-registered taxpayers will file the corresponding Quarterly VAT Return or BIR Form No. 2550Q within 25 days following the close of each taxable quarter when the transaction transpired.

For ease of implementation and guidance to the public, the BIR provided the following schedule: