EOPTA Revenue Regulations No. 3-2024: Implementation of VAT and Percentage Tax Amendments

The Secretary of Finance has issued Revenue Regulation (RR) No. 3-2024 to implement changes to the NIRC 1997 (Tax Code), as amended by Republic Act No. 11976, known as the “Ease of Paying Taxes Act”.

Key Changes in Terminology:

Gross Sales – will now be used for both goods and services instead of “gross selling price,” “gross value in money,” and “gross receipts.”

“Invoice” will replace Sales/Commercial Invoices or Official Receipts.

“Billing” or “Billed” will be used for receipts or payments, previously the basis for recognizing sales of services under VAT and Percentage Tax.

The VAT-exempt threshold of PHP 3,000,000.00 will be adjusted every three years based on the Consumer Price Index (CPI) published by the Philippine Statistics Authority (PSA).

Filing and Payment:

Filing must be done electronically, with manual filing allowed if electronic platforms are unavailable. – Tax payments with due dates must be made electronically or manually through authorized agent banks (AABs) or revenue collection officers (RCOs).

Specific VAT Amendments:

– Sellers may deduct the output VAT for uncollected receivables from their output VAT in the next quarter after the agreed payment period lapses, provided the VAT on the transaction has been fully paid and not claimed as a deduction.

– VAT refund claims will be classified into low, medium, and high risk, with medium and high-risk claims subject to audit.

– Taxpayers with canceled VAT registration due to business cessation may apply for a refund or Tax Credit Certificate for any unused input tax within two years from the date of cancellation, which refers to the date of BIR Tax Clearance issuance.

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