Input Tax Carry-Over

Learn more on how setting up Input Tax Carry-over from the Previous Year works in JuanTax.

For manual adding of carry-over

For example, if you are about to generate your 2550M or 2550Q with a carry-over from the 4th quarter of 2018 but only started using JuanTax in January 2019, what you can do is manually add the carry-over from the previous period to 17A(2550M) or 20A(2550Q).

2550M

2550Q

Example of Quarter to Monthly carry-over:

You have a carry-over from the 4th quarter of 2019 and you will now be generating 2550M for the year 2020. JuanTax will automatically pull the carry-over from 2550Q 4th quarter of 2019.

Overpayment from 2550Q Q4 2019

2550M January 2020

Example of Monthly to Monthly carry-over:

It's January 2020 and you overpaid taxes last year and want them to carry over to the next VAT filing, once you generated your February 2550M, the carry-over from the previous month which is January 2020 will be carried over to your February 2020, 2550M.

2550M January 2020

2550M February 2020

Example of Quarter to Quarter carry-over:

Overpayment from 2550Q Q1 2020

2550Q Q2 2020


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! 💬


WITHHOLDING 1601EQ

If there is an overpayment in the current tax return (for example 1601EQ). The filer has the option to choose:

  • To be refunded

  • To be issued as Tax Credit Certificate or;

  • To be carried over to the next quarter within a calendar year

If the filer chose the third option, JuanTax will automatically pull the over remittance from the current Quarter to the next quarter. The carry-over amount can be found in Line 23.

1601EQ Q1 2020 - Over Remittance

1601EQ Q2 2020

1702Q NOLCO

Adding net operating loss carry-over in 1702Q.

For example, if the filer had a loss last period (2019) but only started using JuanTax in 2020, we will allow the user to manually add NOLCO, and we will automatically add the NOLCO entry to the Deduction section.

Manual Adding

NOLCO Section - Manual add

Deduction Section

Automatic Pulling

For instances that the filer generated 1702RT(2019) in JuanTax and he/she has a loss, JuanTax will automatically pull the NOLCO from 1702RT 2019 to 1702Q 2020 Deduction.

1702RT Loss 2019

1702Q Deduction Section

1701Q NOLCO

NO CARRY-OVER - 1601C and 1601FQ

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