STEP 1: To set up Capital Goods Carryover from the previous year, simply click on Section 17B of your VAT return in JuanTax.
Keep in mind that you can ONLY manually enter an amount for Capital Goods Carryover from the previous year if you are working on the first return period based on your organization's start date.
For example, if your organization's start date is January 2020, you can ONLY manually enter the amount for Capital Goods Carryover from the previous year when you generate your 2550M for January 2020.
NOTE: This screenshot is from a 2550M (line number 17B) tax form.
STEP 2: Fill out the form with the necessary information then click the Save button to proceed.
STEP 3: This will then reflect on your VAT return’s Section 17 under 17B.
NOTE: This screenshot is from a 2550Q (line number 17B) tax form.
Important Reminder:
On January 13, 2023, the Bureau of Internal Revenue (BIR) issued Revenue Memorandum Circular (RMC) No. 5-2023. This declares the removal of BIR Form 2550-M and states that taxpayers registered for value-added tax (VAT) are no longer required to file a monthly VAT declaration (BIR Form No. 2550-M) for transactions starting January 1, 2023, and must instead file the corresponding quarterly value-added tax return (BIR Form 2550-Q) within twenty-five (25) days following the close of each taxable quarter when the transaction occurred.
The table below is also included in this RMC to assist taxpayers.
The full version of this issuance is available on the BIR website.
What happens if I'm a Juantax user?
We have added a banner to the tax form 2550M/Q to remind VAT-registered users about the BIR announcement.
As you can see, the drop-down menu now only displays the quarterly filing months. The complete list of months previously shown has now been removed.
If you have any further questions, please contact us via email or by clicking the chat icon in the lower-right corner of any JuanTax page, and we'll be happy to assist! 💬
Helpful Links:
How to enter Capital Goods transactions in JuanTax (Transactions Module)
How to complete Schedule 3 inside the VAT return
Updated Rule on Amortization of Input VAT on Capital Goods based on TRAIN Law (RR No. 13-2018)