506VALUE ADDED TAX IN THE l'1111.114)INESthe commencement of his
business, or whenever he transfers to another revenue district, (a)
register with the appropriate revenue office within ten (10) days
from the commencement of business or transfer in the manner
prescribed under this section and (b) pay the applicable
registration fee of Five hundred pesos (P500.00) for every separate
or distinct establishment or place of business, if he has not paid
the registration fee in the beginning of the taxable year.The head
or main office and each of its branches located in different places
must be registered with the Revenue District Office where the head
or main office or branch is located."The following common carriers
are required to register without paying the annual registration fee
of P500.00:a. Terminals and sub-terminals not generating sales;b.
Satellite offices; andc. Garages that do not sell tickets but are
merely used for the purpose of filling in gasoline or
repair/maintenance work.The above offices/terminals are required to
register in the RDO where said offices/terminals are
located.Previously registered VAT taxpayer under the old VAT Law
may change his status to non-VAT taxpayer by making a written
application, filing BIR Form 1905, and by demonstrating to the
Commissioner's satisfaction that his gross sales or receipts for
the following twelve (12) months, other than those that are exempt
under Section 109 (A) to (U), will not exceed One million nine
hundred nineteen thousand five hundred pesos (P1,919,500).Optional
VAT RegistrationA VAT-registered person may, in relation to Section
9.236-1(C) of these Regulations, elect that the exemption in
Section 4.109-1(B) hereof shall not apply to his sales of goods or
properties or services.in"Sec. 9.236-1, Rev. Regs. No. 7-95,
December 9, 1995.15The business of an international sea carrier is
exempt from VAT because this is a service subject to percentage
tax. If the main business (international shipping) is exempt from
VAT, the VAT-exempt person cannot elect that its exempt business/es
be placed under the VAT system. The option to be subject to VAT on
its exempt transactions is available only to a VAT-registered
person (A7, RMC 31-2008, January 30. 2008). It cannot elect that
said principal exempt business be subject to VAT even if
( 'I IAl9'I l(8507
ADMINISTRATIVE lilq/lIIREMENTSOnce the election is made, it
shall he irrevocable for a period of three (3) years counted from
the quarter when the election was made, except for franchise
grantees of radio and TV broadcasting whose annual gross receipts
for the preceding year do not exceed ten million pesos
(P10,000,000),, where the option becomes perpetually irrevocable.'
6There are some taxpayers who are engaged in businesses that are
exempt from value added under existing law (RA. 9337), but are
given the option to register as VAT taxpayers. These include:(1)
Any person who is VAT-exempt under Section 4.109-1(B) (1)(V) not
required to register for VAT may, in relation to Section 4.109-2,
elect to be VAT-registered by registering with the RDO that has
jurisdiction over the head office of that person, and pay the
annual registration fee of P500 for every separate and distinct
establishment.(2) Any person who is VAT-registered but enters into
transactions which are exempt from VAT (mixed transactions) may opt
that the VAT apply to his transactions which would have been exempt
under Section 109(1) of the Tax Code, as amended.(3) Franchise
grantees of radio and/or television broadcasting, whose annual
gross receipts of the preceding year do not exceed Ten million
pesos (P10,000,000) derived from the business covered by the law
granting the franchise, may opt for VAT registration. This option,
once exercised, shall be irrevocable.(5) Radio and TV broadcasting
whose gross annual receipts do not exceed P10 million and which do
not opt to be VAT registered;(6) PEZA and other ecozone registered
enterprises enjoying the preferential tax rate of 5%, in lieu of
all taxes;(7) SBMA and other Freeport zone-registered enterprises
enjoying the preferential tax rate of 5%, in lieu of all taxes.Any
person who elects to register under subsections (1) and 12) above
shall not be allowed to cancel his registration for the
nextsecondary businesses are subject to VAT (A37, RMC 31-2008 and
A6, RMC 46-2008, February 1, 2008). In determining main or
principal business of a taxpayer, we apply the predominance test
(51% or more of its gross receipts). If his main business is not
within the VAT system, he can be considered as a VAT person
eligible for election under Sec. 109(2) of the Tax Code.'6Sec. 15,
Rev. Regs. No. 4-2007, February 7, 2007.
