- The Philippine Bureau of Internal Revenue issued Revenue Memorandum Circular No. 65/2024 on June 14.
- The circular clarifies the output VAT credit on uncollected receivables under the Ease of Paying Taxes Act.
- Key measures include: 1. Allowing sellers to deduct the output VAT previously paid on uncollected receivables. 2. Permitting sellers to make deductions in the next quarter after the agreed payment period lapses. 3. Stating that sellers must not claim the VAT component of uncollected receivables as an allowable deduction under Section 34(E) of the Tax Code. 4. Requiring sellers to add the output VAT back if they recover the receivables later. 5. Providing additional guidelines through FAQs and illustrations.
Source: news.bloombergtax.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
