Revenue Regulations No. 16-2011
Revenue Regulations (RR) No. 16-2011 establishes guidelines and procedures for the registration, payment, and reporting of Value-Added Tax (VAT) by self-employed professionals, including doctors, who provide services subject to VAT. Here are the key points relevant to doctors:
VAT Registration
Doctors with annual gross sales or receipts exceeding PHP 3 million are required to register as VAT taxpayers with the BIR. Those with gross sales or receipts below this threshold may choose to register as non-VAT taxpayers and pay a 3% percentage tax instead.
Issuance of VAT-Registered Sales Invoices
VAT-registered doctors must issue VAT-registered sales invoices or official receipts for every sale, barter, or exchange of services, indicating their Taxpayer Identification Number (TIN) and the word “VAT-registered.”
Monthly VAT Declaration
VAT-registered doctors must file a Monthly Value-Added Tax Declaration (BIR Form No. 2550M) and pay the output VAT, which is the VAT on their sales, less the allowable input VAT on their purchases.
Quarterly VAT Return
VAT-registered doctors must also file a Quarterly Value-Added Tax Return (BIR Form No. 2550Q) and pay any remaining VAT due, taking into account the monthly VAT payments they have made.
VAT Relief System: VAT-registered doctors are required to submit a summary list of their sales and purchases through the BIR’s VAT Relief System.