Revenue Memorandum Circular · RMC
RMC No. 65-2024 Digest
The Circular clarifies certain issues relative to the implementation of Section 19 of Republic Act No. 11976 (Ease of Paying Taxes Act), which added Section 110(D) of the National Internal Revenue Code of 1997, as amended (Tax Code), that introduced the Output Value Added Tax (VAT) Credit on uncollected receivables.
- Document type
- RMC
- Number
- 65
- Year
- 2024
- Text quality
- Not specified
Document text
Reference copy · verify against the official sourceRMC No. 65-2024 (June 14, 2024) clarifies Section 110(D) of the Tax Code, introduced by the Ease of Paying Taxes Act, which lets a VAT-registered seller credit against next quarter's output VAT the VAT it earlier paid on credit sales whose receivables were not collected after the agreed credit period. The credit requires, among others, a sale after the effectivity of RR No. 3-2024, a written credit term, VAT separately shown on the invoice, reporting in the Summary List of Sales, declaration of the output VAT in BIR Form 2550Q, and that the VAT was not claimed as bad debt. Claiming the credit is optional. Later collections must be declared; the buyer's related input VAT is disallowed and must be reversed; and the seller must stamp "Claimed Output VAT Credit" on the invoice and give the buyer copies. Interim QVR line items are prescribed for EFPS and eBIR/manual filers.