Taxpayers should pay VAT in regions they have business branches

A LAWMAKER is seeking an amendment of Republic Act 8424 or the National Internal Revenue Code of 1997 so that taxpayers with business branches in the regions shall pay their value added tax (VAT) and file their returns in revenue districts within those regions.

Rep. Ferdinand Martin Romualdez (1st District, Leyte) said the wisdom for his proposal is that those business branches are enjoying the local services of the local government units.

“Thus, it should follow that the VAT should be paid in the location of the business branches for the mutual benefit of LGUs,” said Romualdez, an Assistant Minority Leader.

He stressed taxes are the lifeblood of government, without which the government will become anemic. “Hence, the revision, amendment and modification thereof are the order of the Filipino people,” he said.

In House Bill 6424, Romualdez sought the amendment of Section 114 (B) of RA 8424 so that “Except as the Commissioner otherwise permits, the return shall be filed with and the VAT paid to an authorized agent bank, Revenue Collection Officer or duly authorized city or municipal
Treasurer in the Philippines located within the revenue district where the taxpayer is doing business.

Presently, the law provides the VAT payment and filing of tax returns shall be done within the revenue district where the taxpayer is registered or required to register.

The law also provides that in general, every person liable to pay the VAT shall file a quarterly return of the amount of his gross sales or receipts within 25 days following the close of each taxable quarter prescribed for each taxpayer. Furthermore, VAT-registered persons shall pay the VAT on a monthly basis.


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