How to File BIR Form 2550Q (Quarterly VAT Return)?

By: Hergie Ann De Guzman, CPA

What is VAT?

Value Added Tax (VAT) is an indirect tax which may be shifted or passed on to the buyer of goods, properties or services. The VAT is ultimately passed on to the end consumer of the goods or services. 

Covered Transactions

VAT in the Philippines covers the following transactions:

  1. Sales of goods or properties;
  2. Importation of goods;
  3. Sales of services; and,
  4. Lease of properties.

Overview of the Philippine VAT System

The VAT system works in a way that the seller adds a VAT mark-up on its sales (Output VAT), which would be passed on to its buyers. When making purchases, the seller also incurs VAT (Input VAT), as part of the purchase price, which he/she can use as a credit to the Output VAT in the sales. The seller would need to offset the Output VAT and Input VAT. If the Output VAT exceeds the Input VAT, the seller should remit the difference. On the other hand, if Input VAT exceeds Output VAT, the seller has an option to credit the excess input VAT to the succeeding quarters or apply for a VAT Refund.


VAT Compliance includes filing the monthly and quarterly using BIR Form 2550M and 2550Q, respectively. 

The Return – BIR Form 2550Q

For this discussion, we’ll focus on the Quarterly VAT Return. Assuming that you wish to file for the Quarter 3 VAT return of the calendar year 2020, you have to follow the following steps in filing:

  1. Log in to the Company’s eFPS account or through eBIR Forms (latest version is v7.6.1 as of writing this article, please check from time to time the BIR’s website for the updated version).
  2. From the drop down selection, select Form – BIR Form 2550Q (Quarterly Value-Added Tax Return).
  3. Fill-out the fields in the form. Below are the details for each field: 
Field No.Field TitleRemarks
1For the YearSelect applicable reporting year-end. In the example, please select “12/2020”
2QuarterSelect applicable quarter. In the example please select “3rd “
3Return PeriodAutomatically filled-out based on the selection in item 1 and 2. In our example, the period is from “07/01/2020” to “09/30/2020”
`4.Amended Form?Specify if filing for the initial return or amended return.
5Short Period Return?Short period returns are applicable for taxpayers retiring from business and those whose VAT registrations are cancelled.
6Taxpayer Identification No. (TIN)Automatically filled out based on the initial Company details entered in the eBIR system or eFPS.
7RDO CodeAutomatically filled out.
8No. of Sheet/s AttachedAutomatically filled-out.
9Line of BusinessAutomatically filled out based on the initial Company details entered in the eBIR system or eFPS.
10Taxpayer’s NameAutomatically filled out based on the initial Company details entered in the eBIR system or eFPS.
11Telephone NumberAutomatically filled out.
12Registered AddressAutomatically filled out.
13Zip CodeAutomatically filled out.
14Are you availing of tax relief under Special Law or International Tax Treaty?Select “Yes” if availing of tax relief and “No” if not applicable.
15VATable Sales/Receipt – Private
(15A and 15B)
This section is for the consolidated VATable sales to private buyers for the quarter.
Please note that the amount of VATable sales should be the gross amount, meaning gross of expanded withholding taxes.
16Sales to Government
(16A and 16B)
This section is for the consolidated VATable sales to government entities.
17Zero-rated Sales/ReceiptsIn case of zero-rated sales such as export sales and sale to PEZA-entities
18Exempt Sales/ReceiptsIn case of exempt sales such as sale of agricultural and marine products in the original state, importation of household effects of Philippine residents, sales subject to percentage tax, etc.
Total Sales/Receipts and Output Tax DueAutomatically computed.
20Allowable Input VAT
20AInput VAT Carried Over from Previous QuarterIn the example, it is the input VAT from Quarter 2 (Item 27).
20BInput VAT deferred on Capital Goods Exceeding PhP1,000,000.00 from Previous QuarterInput VAT deferred from previous quarter’s purchase
20CTransitional Input VATApplicable for those taxpayers transitioning from Non-VAT to VAT – 2% of the value of such inventory or the actual VAT paid on goods, materials and supplies (whichever is higher)
20DPresumptive Input VATApplicable to taxpayers engaged in the processing of sardines, mackerel and milk, and in manufacturing refined sugar, cooking oil and packed noodle-based instant meals – 4% of the gross value of purchases of primary agricultural products which are used as inputs to production.
20EOthersOther input VAT allowable as credit by the regulations or law.
20FTotalAutomatically computed.
21Current Transactions
Purchases of Capital Goods not exceeding 1MAmount of purchase of capital goods with purchase price of not exceeding PhP1,000,000.00 wherein deferment of input VAT is not applicable.
Purchases of Capital Goods exceeding 1MCurrent purchase of capital goods with purchase price of PhP1,000,000.00 or more (Total Input VAT) wherein deferment of input VAT is required.
Importation of Goods other than Capital GoodsInput VAT on importation
Domestic Purchase of ServicesInput VAT on purchase of services
Services rendered by Non-residentsInput VAT for services of non-residents rendered in the Philippines
21MPurchases not qualified for Input TaxExempt purchases and zero-rated purchases
OthersOther current purchases with input VAT allowable as credit by the regulations or law.
21PTotalAutomatically computed.
22Total Available Input VATAutomatically computed.
23Deductions from Input Tax
23AInput Tax on Purchases of Capital Goods exceeding 1M deferred for the succeeding periodDeferred input VAT to be applied to succeeding periods.
Combination of current and previous period’s capital goods purchases.
23BInput Tax on Sale to Government closed to expensesInput VAT directly attributable to Sales to Gov’t + Ratable portion of input VAT not directly attributable to any activity – Standard Input VAT
23CInput Tax allocable to Exempt SalesInput VAT directly attributable to Exempt Sales + Ratable portion of input VAT not directly
23DVAT Refund/TCC ClaimedA deduction for input VAT/Tax Credit Certificate claimed, which should not form part of the claimable input VAT for the quarter
23EOthersOther deductions to input VAT
23FTotalAutomatically computed.
24Total Allowable Input TaxAutomatically computed.
25Net VAT PayableAutomatically computed.
26Tax Credits/Payments
26AMonthly VAT Payments – previous two monthsDeductions for the payments made for the first 2 months of the quarter. In the example, VAT payments made for July and August returns should be deducted.
26BCreditable VAT WithheldFor withholding of VAT claimed as tax credit.
26CAdvance Payments for Sugar and Flour IndustriesApplicable to those in the sugar and flour industries. The advance payments made by the sellers of refined sugar can be claimed as credit provided that a Certificate of Advance Payment of VAT Payment was duly issued.
26DVAT withheld on Sales to GovernmentThe 5% VAT withheld by the government purchasers of goods and services as evidenced by issued BIR Forms 2307.
26EVAT Paid in return previously filed, if this is an amended returnVAT paid in the originally filed return.
26FAdvance Payment madeOther advance payments made as evidenced by BIR Form 0605
26GOthersOther Credits
26HTotal Tax Credits/PaymentsAutomatically computed.
27Tax Still Payable/PaymentsAutomatically computed.
28PenaltiesAny surcharge, interest and compromise to be paid for late filing. For eFPS, these are automatically computed by the system.

Surcharge – 25% of net amount of remittance
Interest – 12% of net amount of tax * number of days late/360
Compromise – see Annex A of Revenue Memorandum Order (RMO) No. 7-2015 for the compromise table
29Total Amount PayableAutomatically computed.


Schedule 1: Schedule of Sales/Receipts and Output TaxThe sales are grouped based on industry classification with the corresponding ATCs
Schedule 2; Purchases/Importation of Capital Goods (Not Exceeding 1M)List of capital goods with aggregate amount of below PhP1,000,000.00.

Capital Goods are depreciable assets for VAT purposes.

Details needed:
Date of purchase

Description of capital goods
Schedule 3; Purchases/Importation of Capital Goods (Exceeding 1M)Claiming of input VAT is deferred depending on estimated useful life of the capital goods:
5 years or more – input VAT is spread evenly for 60 months

Less than 5 years – input VAT is spread evenly for the period of useful life

Details needed:
Date of purchase

Description of capital goods

Estimated useful life
Schedule 4: Input Tax Attributable to Sales to GovernmentInput VAT directly attributable to Sales to Gov’t + Ratable portion of input VAT not directly attributable to any activity – Standard Input VAT
Schedule 5: Input Tax Attributable to Exempt SalesInput VAT directly attributable to Exempt Sales + Ratable portion of input VAT not directly
Schedule 6: Tax Withheld as Tax CreditDetails needed:
Name of withholding agent

Amount of income payment
Schedule 7: Schedule of Advance PaymentFor Advance Payments on Sugar and Flour Industries

Details needed:
Name of miller

Name of taxpayer

Official Receipt Number
Schedule 8: VAT Withheld on Sales to GovernmentBIR Form 2307

Details needed:
Name of withholding agent

Amount of income payment
  1. Click “Validate” to check any fields not yet filled-out. Should you wish to edit/revise any data entered, click “Edit”.
  2. Click on “Submit” to proceed with filing of the return.
  3. For eFPS, a Filing Reference Page will appear while for eBIR Form, a pop-up message for successful submission will appear. Print these for your records together with the Tax Return Receipt Confirmation (TRRC) email.
  4. Proceed with the payment through any of the following:
    1. For eFPS filers, through eFPS Payment Facilities linked to the company’s online banking system, or,
    2. For eBIR-filers or manual filers, payment through Authorized Agent Banks (AABs) under your Revenue District Office’s (RDO) jurisdiction or through electronic payments such as GCash, Paymaya, Land Bank of the Philippines and Union Bank online payment facilities.

Required Attachment

To complete the quarterly compliance, the taxpayer should also submit the quarterly Summary List of Sales, Purchases, and Importations (SLSPI) through the VAT Reconciliation of Listing for Enforcement (RELIEF). The SLS, SLP, and SLI are submitted by sending the DAT File generated in the VAT RELIEF through BIR eSubmission email. Taxpayers receive a Validation Report which should be the proof of the successful submission. To know more about VAT RELIEF and the SLSPI, you may check this article for detailed discussion.

Deadline for Filing and Payment

The deadline for filing the return and payment of the VAT due thereon and the required attachments is on the 25th day of the month following the close of the quarter. In the example, the deadline (for the 3rd Quarter 2020 VAT) is on October 25, 2020.

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