Are you a VAT-registered taxpayer? If so, you have to check your quarterly reporting to verify if you are submitting Summary List of Sales or Purchases (SLSP)
Early this year, the tax authority issued regulations requiring all VAT registered taxpayers to submit SLSP. Previously, only those taxpayers who meet at least Php 2.5 M sales and Php 1M purchases are required to submit SLSP. Those who did not comply were penalized by a fine of not more than Php 25,000.00.
Further, the Bureau of Internal Revenue launched the so-called “2012 Value-Added Tax Audit Program”. This involves investigation of selected VAT taxpayers as follows:
- Taxpayers whose VAT compliance is below the industry benchmarks;
- Taxpayers with substantial decrease in VAT payment;
- Taxpayers with VAT returns reflecting substantial input taxes exceeding 75% of the total sales;
- Taxpayers with no VAT return filed in the year 2011;
- Taxpayers who are reporting/filing “No Operations” return;
- Taxpayers who declared excess input tax carry over for the year 2011;
- Taxpayers with no submission of SLSP;
- Taxpayers with substantial sales but showing net loss;
- Taxpayers with significant under declaration of sales as a result of Tax Compliance Verification Drive or other BIR programs;
- Taxpayers filing exempt VA returns due to availment of incentives or exemptions;
- Such others as selected by the head of VAT Audit Team as approved by the Regional Director.
If you need a review of your tax returns or if you need tax assistance, Triple i Consulting has tax lawyers and tax accountants that will help you with your tax matters.