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 like these Industrial Painters, 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. 😉
sub-contractor po kami.. pero services lang.. do we need to file for RMC 57-2015?
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?
yung school po mag submit po ba ng inventory? anong form po ang gagamitin? sa mga nagdaan na mga taon po, no inventory po ang sina submit ko na papel
Oo naman.. depende sa nature ng business nyo po. Annex A,B or C. fill up no po.
good am. dental clinic po yung business ko, anong format po yung gagamitin ko for inventory? thank you.
Hi po! Pano kung small trading company ka lang, na kung ano inorder yun lang din quantity binibili mo. Hindi kami nagstock ng items? Thanks!
Sis is there an inventory format for lessor? thanks
good pm . Sir is there an inventory format for computershop
good am . Sir is there an inventory format for food/restaurant business?
Kapag po ba sub-contractor po, need din po nito?
PAG NAGSUBMIT PO BA NG ENDING INVENTORY NGAYONG JANUARY KAILANGAN PA RIN PO BA NG SWORN DECLARATION?
Good Day! Sir ask ko lang po,regarding RMC-2015,,, may branch po kasi kami sa ibang city, pagdating sa VAT and Income Declaration dito lang po kami nag susubmit sa lugar namin,,kinukuha namin ang data from them saka namin sinasubmit(merge na lahat,VAT at Income),,,ang tanong ko pagdating sa inventory ememerge din po ba namin?
I guess so, kasi it's a balance sheet Inventory of reflected, pero if your cooperative is enjoying Government Exemptions, better clarify to the nearest BIR po…
1. 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.
2. 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.
3. For construction industry, the amount to be reported under “contract price” is inclusive of VAT.
format po ng RMC 57-2015 can be found here po tapos i download nyo lng po ang applicable annex ng company nyo… fill up nyo lang po ang required items sa Excel format po.
http://www.bir.gov.ph/index.php/revenue-issuances/revenue-memorandum-circulars/2015-revenue-memorandum-circulars.html
basta pareho lng po ng format na binigay ng BIR that's OK…better yet download nyo ung format ANNEX nila for completeness of the required items. RMC-57-2015
http://www.bir.gov.ph/index.php/revenue-issuances/revenue-memorandum-circulars/2015-revenue-memorandum-circulars.html
SERVICE lng po ang computer shop nyo so wala kayong maintained Inventory of Saleable Items at the END of the YEAR, kaya hindi na po ata required mag comply ng RMC na ito.
format po ng RMC 57-2015 can be found here po tapos i download nyo lng po ang applicable annex ng company nyo… fill up nyo lang po ang required items sa Excel format po.
http://www.bir.gov.ph/index.php/revenue-issuances/revenue-memorandum-circulars/2015-revenue-memorandum-circulars.html
format po ng RMC 57-2015 can be found here po tapos i download nyo lng po ang applicable annex ng company nyo… fill up nyo lang po ang required items sa Excel format po.
http://www.bir.gov.ph/index.php/revenue-issuances/revenue-memorandum-circulars/2015-revenue-memorandum-circulars.html
Dapat po updated kayo sa BIR New Regulations and Circulars. I suggest always visit po kayo sa http://WWW.BIR.GOV.PH tapos hanapin nyo po ung REVENUE ISSUANCES. Dun po makikita nyo ang mga bagong issued Regulations and Circulars. Ignorance of the law excuses no one po. Gawin nyo na pong habit ang pagbisita sa kanilang website.
Aircon Contractor po ang line of business ng company namin. every end of the year kami nagfifile nyan. Hindi namin alam na Oct. na ang pasahan ng report?
Paano po makakuha ng format RMC 57-2015
PUEDE MAKHINGI ng format ng RMC 57-2015,,,
sir/madam. saan po makakadownload ng set-up ng RMC 57-2015? thank you.
sir/madam computer shop ang business ko..kailangan ko din po bang magcomply sa RMC 57-2015…tnxs…
good day! i have recently acquired a copy of separate Annex A. separate sheet for retail and manufacturing. should this be used as a for rather than the one on bir website in which annex a ang the same for retail and manufacturing. thank you!
Good day sir/maam, lahat po ba na taxpayer mag comply with the RMC 57-2015? or those taxpayers only with asset-rich balance sheet?
thank you.
Hello Sir
Does a cooperative who have a "grocery operation" need to comply with the RMC 57-2015?
Thanks for the help
Harper Sarmiento Yup! 🙂
Philippine Accounting Updates Non-large Taxpayer, RDO of respective loacation po? Thanks again! Cheers!
By the way, deadline is extended until October 31, 2015.
If non-large taxpayers, RDO, if Large then LTAD or ELTRD or LTD whic ever is applicable. 😉
Hi Sir, Do we have to submit the inventory of branches in respective RDOs? or just in the RDO of head office?
Thanks for the help.