RMC 57-2015: Submission of List of Inventories (extended)

The Bureau of Internal Revenue (BIR) recently issued Revenue Memorandum Circular (RMC) No. 57-2015, Submission of Inventory List and Other Reporting requirements, with the objective of implementing an expanded and improved landscape of accounting information reporting that seeks to provide reliable data and to maximize the quality and adequacy of such data for monitoring and better analysis. The RMC requires additional reports or schedules to be submitted and filed with the annual inventory list shall cover companies maintaining inventory.


In short, the BIR wants to know gain more information about the components of the taxpayer’s inventories. The data/information contained in the said schedules/lists should be reconciled with the amount in the financial statements and annual income tax returns.

Who are required to submit?

According to the RMC 57-2015, all taxpayers with asset-rich balance sheet are required t submit. Example pointed out is when at least half of the total assets in working capital assets.

But in the forum organized by the BIR, all taxpayers maintaining saleable inventories/inventories intended for sale are required to submit the enhanced inventory list even is there is zero balance of such inventories at the end of the year.

In an article posted by Punongbayan & Araullo, what’s included in the inventory list are:

  • Only saleable inventories or inventories intended for sale shall be included in the inventory list. Office supplies, manufacturing supplies, parts and materials not forming part of the saleable inventories or inventories intended for sale shall not be included.
  • For retail and manufacturing industry, the amount to be reported under “unit price” shall be the cost of the saleable inventories, not the selling price.
  • For construction industry, the amount to be reported under “contract price” is inclusive of VAT.

Format to be used for the reports

Take note that the additional report that needs to be submitted should be in hard and soft copies. Following are the templates for the report.

  • Annex A – for manufacturing, merchandising or retail company
  • Annex B and B-1 – for real estate company
  • Annex C – for construction industry

Taxpayers not belonging to the above industries shall adopt any of the format above applicable to their existing inventory. Remember that the BIR emphasized that the submission of the schedules and inventory list that

For soft copies:

  • Inventory list and other applicable schedule shall be in Digital Versatile Disk-Recordable (DVD-R)
  • Properly labeled
  • Submitted together with the sworn declaration in Annex D.

Accompanying the summary list/schedule of inventory is a sworn declaration (Annex D) from the taxpayer for the following:

  • That the contents of the DVD-Rs being submitted herewith conform to the prescribed format required by the BIR
  • That the summary list(s)/ schedule(s) of inventory and/or other schedules has been made in good faith, verified and is true and correct

Download the Annex D – Sworn Declaration template, click here.

Submission and deadlines

The additional schedules prescribed in the RMC 57-2015 shall be submitted on the following schedules:

  • December 31, 2014 Inventories – September 30, 2015 (this was extended until October 31, 2015 per RMC 61-2015)
  • Taxpayers reporting on fiscal year basis which ended July 31, 2014 and thereafter, shall also file their enhanced inventory lists on September 30
  • Every 30th day following the close of the taxable year thereafter

P&A also suggested the following actions points to ensure compliance:

  • The inventory lists will be used in tax investigations. Therefore, ensure that the information are correct and consistent with the other reports and returns maintained or submitted by the company to the BIR.
  • Instead of requesting for an extension, choose to submit a list on September 30 and amend it later, if necessary. Approval of a request for extension is not guaranteed.
  • In some cases, two entities will be reporting the inventory (e.g., the consignor and the consignee). It is advisable to compare and reconcile the details with the other reporting entity. BIR may perform cross matching and discrepancies may trigger further investigation.

Let us know what you think. 😉

Disclaimer: Opinions expressed in this article are that of the author and information provided are for general conceptual guidance for public information and are not substitute for expert advice. Contact support@philcpa.org for more information and if you want to avail professional services. Find us on Facebook!

Orlando Calundan is a CPA who has exposures in FS audit of entities in various industries such as real estate, food/restaurants, manufacturing, service organizations and BPOs, automotive, holding/investment companies and more. He also has exposure on internal audit engagements.

  • Kim Cosmos

    We could not get a BMBE permit for 12 months (they were reorganising) and thus did not get any saleable inventory at any point. Now we are being fined P2k for not submitting an inventory last year and half of this year because we are registered retail.
    Is that correct or should we challenge it?

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