TITLE IVVALUE-ADDED
TAXCHAPTER IICOMPLIANCE
REQUIREMENTS
SEC.
113. Invoicing and Accounting Requirements for VAT-Registered
Persons.
-
(A) Invoicing
Requirements.
- A VAT-registered person shall, for every sale, issue an invoice or
receipt.
In addition to the information required under Section 237, the
following
information shall be indicated in the invoice or receipt:
(1) A statement that
the seller is a VAT-registered person, followed by his taxpayer's
identification
number (TIN); and
(2) The total amount
which the purchaser pays or is obligated to pay to the seller with the
indication that such amount includes the value-added tax.
(B) Accounting Requirements.
- Notwithstanding the provisions of Section 233, all persons subject to
the value-added tax under Sections 106 and 108 shall, in addition to
the
regular accounting records required, maintain a subsidiary sales
journal
and subsidiary purchase journal on which the daily sales and purchases
are recorded. The subsidiary journals shall contain such information as
may be required by the Secretary of Finance.
SEC.
114. Return and Payment of Value-Added Tax. -
(A) In General.
- Every person liable to pay the value-added tax imposed under this
Title
shall file a quarterly return of the amount of his gross sales or
receipts
within twenty-five (25) days following the close of each taxable
quarter
prescribed for each taxpayer: Provided, however, That
VAT-registered
persons shall pay the value-added tax on a monthly basis.cralaw:red
Any person, whose registration
has been cancelled in accordance with Section 236, shall file a return
and pay the tax due thereon within twenty-five (25) days from the date
of cancellation of registration: Provided, That only one
consolidated
return shall be filed by the taxpayer for his principal place of
business
or head office and all branches.cralaw:red
(B) Where to File
the Return and Pay the Tax.
- Except as the Commissioner otherwise permits, the return shall be
filed with and the tax paid to an authorized agent bank, Revenue
Collection
Officer or duly authorized city or municipal Treasurer in the
Philippines
located within the revenue district where the taxpayer is registered or
required to register.cralaw:red
(C) Withholding
of Creditable Value-Added Tax.
- The Government or any of its political subdivisions,
instrumentalities
or agencies, including government-owned or -controlled corporations
(GOCCs)
shall, before making payment on account of each purchase of goods from
sellers and services rendered by contractors which are subject to the
value-added
tax imposed in Sections 106 and 108 of this Code, deduct and withhold
the
value-added tax due at the rate of three percent (3%) of the gross
payment
for the purchase of goods and six percent (6%) on gross receipts for
services
rendered by contractors on every sale or installment payment which
shall
be creditable against the value-added tax liability of the seller or
contractor:
Provided, however, That in the case of government public works
contractors,
the withholding rate shall be eight and one-half percent (8.5%): Provided,
further, That the payment for lease or use of properties or
property
rights to nonresident owners shall be subject to ten percent (10%)
withholding
tax at the time of payment. For this purpose, the payor or person in
control
of the payment shall be considered as the withholding agent.cralaw:red
The value-added tax
withheld under this Section shall be remitted within ten (10) days
following
the end of the month the withholding was made.cralaw:red
SEC.
115. Power of the Commissioner to Suspend the Business Operations of
a Taxpayer.
- The Commissioner or his authorized representative is hereby
empowered
to suspend the business operations and temporarily close the business
establishment
of any person for any of the following violations:
(a) In the case of
a VAT-registered Person. -
(1) Failure to
issue
receipts or invoices;
(2) Failure to file
a value-added tax return as required under Section 114; or
(3) Understatement
of taxable sales or receipts by thirty percent (30%) or more of his
correct
taxable sales or receipts for the taxable quarter.
(b) Failure of any
Person
to Register as Required under Section 236. -
The temporary closure of
the establishment shall be for the duration of not less than five (5)
days
and shall be lifted only upon compliance with whatever requirements
prescribed
by the Commissioner in the closure order.