Scribd Logo
Upload

Welcome to Scribd!

  • 20 views

    RMC 39 - 2018

    Uploaded by

    Arnold Bernas

    Copyright:

    © All Rights Reserved
    Download as PDF or read online from Scribd

    RMC 39 - 2018

    Uploaded by

    Arnold Bernas
    20 views2 pages

    Original Title

    RMC 39 - 2018(2)

    Copyright

    © © All Rights Reserved

    Available Formats

    PDF or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    Copyright:

    © All Rights Reserved
    Download as PDF or read online from Scribd
    Download as pdf
    20 views2 pages

    RMC 39 - 2018

    Uploaded by

    Arnold Bernas

    Copyright:

    © All Rights Reserved
    Download as PDF or read online from Scribd
    Download as pdf
    of 2
    [BUREAU OF INTERNAL REVENUE 08 May 2018 REVENUE MEMORANDUM CIRCULAR NO. 39-2018 SUBJECT: Reiterates the Imposition of Value-Added Tax on Goods Disposed of or Existing as ofthe Date of Change in or Cessation of Status of a Person as VAT-Registered Taxpayer Pursuant to Sec. 41068 of Revenue Regulations (RR) No. 16-2005, Implementing See 106(C) ofthe Tax Code of 1997, as farther amended by R.A. 10963, Otherwise Known as the “Tax Reform for Ae:elevation and Inclusion” or the TRAIN Law TO + _AllInternal Revenue Officers and Others Concerned “This Circular is iasuec to reiterate and clarify the tanabiity of goods ar properties ‘originally intended fo ale o ae in busines, including capital goods, disposed of o existing ts of the date of change in cr cessation of status of a person as VAT-registered taxpayer pursuant to See. 4106 of RX No. 16-2005, implemeating Sec. 106(C) ofthe Tax Code of 1997, as further amended ty RA. 10963, otherwise known as the “Tax Reform for ‘Acceleration and Inclusion” othe TRAIN Law. thas been observed thi taxpayers who changed their status from VAT to Non-VAT ‘ue to the increase in the VAT threshold of P3,000,000.00 as provided for under Seetion 09(BB) of the TRAIN Lav, amending the Tax Code of 1997, ae submitting only the Ipplicaion for Registration Information Update" (BIR Form’ 1905) without filing the quarterly VAT returns and paying the tx due on the inventories existing es ofthe date of change of status ‘The pertinent provision of Sec, 106(C) of the Tax Code of 1997, as implemented by Sex, 41068 of BR No, 16-2095, states as follows (©) Changes i or Cessation of Status of @ VAT- registered Person ~ ‘The tax imposed in Subsection () of ths Setion shall alo apply to goods spose of or ekting as of a certain date if under circumstances 10 be Ipresribed in rales ad regulations to be promulgated by the Secretary of ‘Finance, upon the recommendation ofthe Commissioner, dhe status ofa person ‘asa VAT-regutered person changes ors terminated ‘Sec. 4.1068 of Revenue Regulations No 16-2005; SEC: 4.1068. Change ar Cessation of Status as VAT- registered Person ~ (ep Subjoct ost tx The VAT provided for in See. 106 ofthe Tax Code shall apply to goods or ‘properties orginally ended forsale or use tm business, and capita goods Which are esting a ofthe occurrence ofthe fllowing (1) Change of business acto from VAT exable status to VAT-exempt status. An example is 1 VAT-registered person engaged in « taxable actviy Tike wholesaler or reailer who decides to discontinue such activity and ‘engages instead on Ife insurance business or any other business not subject wo VAT. (2) Approval ofa request for cancellation ofreisiration de to reversion to exempt sans 12) Approval of@ rues for cancellation of reisration due oa desire 10 revert to exempt stato after the lapse of thre (3) consecutive years rom the time of registration by aperson who voluntarily registered despite being exempt under Sec, 1092) ofthe Tax Code (4) Approval of a request for eancellation of registration of ane who commenced busiaess vith the expectation of grass sales or receipts exceeding 1P1 500,000.00 (now P3,000,000.00) but who fated 19 exceed this amount luring the fst welve months of operation.” (rmphast supplied) Pursuant to the afor-quoted provisions, it is bereby emphasized that goods or propestes orginally intended forse of use in business, including epital goods, disposed of Ureniating as ofthe date of change of status of taxpayer from VAT to Nor-VAT are subject {OVAT imposed under Section 106(4) ofthe Tax Cade of 1997, as amended. Hence, taxpayers ih requited to fle the uartrty VAT return covering the period when the change of status ‘ranspred and pay the coresponding VAT due thereon, All revenue officials emeemed are enjoined to give this Circular as wide a publicity as possible peoonsiony xosann DULAY SAUER] consoliamgl ip, RECORDS MGT. DIVISION.

    You might also like

    pFad - Phonifier reborn

    Pfad - The Proxy pFad of © 2024 Garber Painting. All rights reserved.

    Note: This service is not intended for secure transactions such as banking, social media, email, or purchasing. Use at your own risk. We assume no liability whatsoever for broken pages.


    Alternative Proxies:

    Alternative Proxy

    pFad Proxy

    pFad v3 Proxy

    pFad v4 Proxy