Republic of the Philippines

Department of Finance
BUREAU OF INTERNAL REVENUE
Revenue District Office No. XXX
Tel No. (XXX)XXX-XXXX Email: rdo_XXX@bir.gov.ph

June 15, 2022

XXX-XXX-XXX
TIN: XXX-XXX-XXX
XXX-XXX-XXX
XXX-XXX, XXX-XXX

XXX:

Good day!

Please be informed that in the course of verifying the Alphalist of Payees of LGU XXX
and XXX, XXX for the Calendar Year XXX, it appeared that your Total Gross Sales or Receipts
amounted to Php XXX-XXX-XXX-XXX which amount has exceeded the VAT threshold as
provided under the National Internal Revenue Code of 1997, as amended.

Under Sec. 236 (G) of the NIRC – Persons required to Register for Value Added Tax,
states that:

1) Any person who, in the course of trade or business, sells, barters or exchange goods
or properties, or engages in the sale or exchange of services, shall be liable to
register for value added tax if:
a) His gross sales or receipts for the past twelve (12) months, other than those
exempt under Section 109(A) to (V), have exceeded three million pesos (Php
3,000,000.00) (TRAIN Law).

2) Every person who becomes liable to be registered under paragraph (1) of this
Subsection shall register with the Revenue District Office which has jurisdiction over
the head office or branch of that person, and shall pay the annual registration fee
prescribed in the Subsection (8) hereof. If he fails to register, he shall be liable to pay
under Title IV as if he were a VAT-registered person, but without the benefit of
input tax credits for the period in which he was not properly registered.

In view of this, you are hereby advised to update your registration from Non-Vat to
VAT accordingly within ten (10) days upon receipt of this letter. In addition, you are required
to surrender all the unused receipts/invoices including the original Certificate of
Registration. Moreover, if you have not declared the said gross sales/receipts in your Income
Tax Return filed last April 2021, you are also required to amend your Income Tax Return for
the said period and pay the corresponding penalties thereof.

For more inquiries, please feel free to give us a call at (XXX) XXX-XXX or visit our office
at XXX-XXX-XXX-XXXx and look for XXX-XXX-XXX-XXXX, XXX, XXX-XXX-XXX.

We trust that this matter merits your preferential attention.

Very truly yours,

XXX-XXX-XXX
Revenue District Officer
RXXX-XXX-XXXX