Revenue Memorandum Circular · RMC
RMC No. 21-2022
To prescribe the guidelines in the claim of Input Value-Added Tax (VAT) on purchases or importations of capital goods pursuant to Section 110 of the National Internal Revenue Code of 1997 (Tax Code), as amended by Republic Act No. 10963 (TRAIN Law), and to prescribe work-around procedures while BIR Forms 2550Q and 2550M are undergoing revisions.
- Document type
- RMC
- Number
- 21
- Year
- 2022
- Text quality
- Not specified
Document text
Reference copy · verify against the official sourceRMC No. 21-2022 prescribes interim guidelines for claiming input VAT on purchased or imported capital goods under Section 110 of the Tax Code, as amended by the TRAIN Law. While BIR Forms 2550M and 2550Q are being revised, taxpayers using the February 2007 versions should fill out Schedule 3(A) by placing "1" under Columns E and F and encoding the input tax claimed on capital goods exceeding ₱1M in Column G; under EFPS/eBIRForms, a useful life of one should likewise be indicated so the balance of input tax carried to the next period is nil. Effective January 1, 2022, input VAT on capital goods is allowed upon purchase/payment and is no longer deferred. Taxpayers with unutilized input VAT on capital goods acquired before January 1, 2022 continue to amortize it as scheduled (Schedule 3(B) still applies), and if the capital good is sold or transferred within five years or before full amortization, the entire unamortized input tax may be claimed in the month/quarter of sale or transfer.