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Hereunder are some of the basic questions and answers regarding the registration of taxpayers as required under Revenue Memorandum Order No. 41-94.

Q-1: Who are required to register?

A-1:	a. VAT taxpayers;
	b. Non-VAT taxpayers;
	c. Withholding agents;
	d. Taxpayers subject to excise tax.

Q-2: What are to be registered by the abovementioned taxpayers?

A-2:	a. Head office;
	b. Branches;
	c. Storage places;
	d. Production places;

Q-3: Are taxpayers previously registered as VAT, Non-VAT, Excise taxpayers, Withholding Agents, or storage keepers still required to re-register?

A-3: Yes. All taxpayers previously registered, except those already registered under Republic Act (RA) 7716 in 1994, are required anew. However, it there is a change in status from VAT to Non-Vat or vice versa, there is still a need to re-register.

Q-4: For taxpayers registering anew, is there a need to file an Application for Cancellation of their previous registration?

A-4: No. The previous registration is automatically cancelled upon re-registration

Q-5: How about non-resident aliens and non-resident foreign corporations receiving income from sources within the Philippines, are they also required to register?

A-5: No. The tax due from them shall be remitted/paid to the BIR by the payor who shall constitute as the withholding agent of the tax.

Q-6: If the taxpayer is engaged in a VATable activity, but the gross sales or receipts from business or practice of profession is P500,000 or below, is he required to register?

A-6: Yes, he is required to register as a Non-VAT taxpayer. However, if his gross sales or receipts is more than P100,000 but does not exceed P500,000, he has the option to register as a VAT taxpayer. In the case of marginal income earners with gross sales or receipts of P100,000 and below, they have no other option but to register as Non-VAT.

Q-7: Are taxpayers required to register their business annually?

A-7: No. Taxpayers are required to register only once before commencing their business. However, they are required to pay the registration fee annually.

Q-8: Are there instances where a taxpayer is required to register more than once?

A-8 : Yes. Registered taxpayers are required to register again in the following instances:

a. establishment of new branch/storage place/place of production;

b. engaging in different business activity, i.e. a VAT taxpayer engaging in a Non-VAT activity or vise versa;

c. major changes in business structure; and

d. transferring a business from one RDO to another.

Q-9: When is the taxpayer required to apply for registration and pay the registration fee?

A-9: New taxpayers shall apply for registration and pay the registration fee before commencing their business.

Thereafter, taxpayers should pay the annual registration fee not later than January 31, every year.

Q-10: Are taxpayers required to pay the registration fee in full?

A-10: Yes. The payment of P1,000 annual fee shall be made yearly on or before January 31. However, at the option of the taxpayer payment may be made on a quarterly basis in the amount of P250.00 payable on or before the 20th day of the first month of the calendar quarter.

Q-11: Where should a taxpayer register?

A-11: All taxpayers are required to register with the RDO having jurisdiction over the head office, branch office, place of production or storage place where inventory of goods for sale or use in business are kept.

For VAT registration purposes, the head office and its branches wherever located are required to register with the RDO having jurisdiction over the head office. However, payment of registration fee should be at the RDO where the branch is located.

Q-12: Is there any particular form prescribed for application for registration?

A-12: Yes. BIR Form 1556-A (Application for Registration) is prescribed.

Q-13: What information or documents are required for registration?

A-13: A) For taxpayers commencing a business, the following documents are required to be submit together with the duly accomplished Application for Registration (BIR Form No. 1556-A):

1. Sketch of location;

2. Photocopy of Mayor's Permit and/or Municipal License;

3. Photocopy of TIN card or Application for TIN.

B) For branch offices:

1. Photocopy of BIR Certificate of Registration or Application for Registration of the Head Office duly received by the RDO where the Head Office is located;

2. Duly accomplished Application for Registration.

C) For taxpayers previously registered but did not register under RA 7716:

1. Duly accomplished Application for Registration;

2. Documentary proof evidencing prior registration.

D) For taxpayers transferring place of business from one RDO to another

1. Duly accomplished Application for Registration;

2. Photocopy of Annual Registration Fee Return;

3. Photocopy of Certificate of Registration (BIR Form No. 1556);

4. Duly accomplished Application for Cancellation stamped "received" by the RDO where he is previously registered.

Q-14: Are branches, storage places or production also required to pay the Annual Registration Fee of P1,000?

A-14: Each branch is required to pay the Annual Registration Fee of P1,000. However, storage and production places are liable to the annual registration fee only when sales operation are conducted thereat.

Q-15: Is there any particular form prescribed for payment?

A-15: Yes. BIR Form No. 1558 (Annual Registration Fee Return) is prescribed.

Q-16: Who are required to register without paying the registration fee of P1,000?

A-16: The following taxpayers are exempt from the payment of the registration fee but they are required to register:

1. Non-stock, non-profit corporations, organizations, associations, not engaged in trade or business;

2. Government agencies and instrumentalities, government offices not engaged in propriety activities;

3. Storage places/place or production/extension offices where no selling operations are conducted thereat;

4. Taxpayers enjoying exemptions under R.A. 6810 (Kalakalan 20);

5. Persons engaged in either VAT or Non-VAT taxable business, whose gross sales or receipts did not exceed P100,000 for the immediately preceding 12-month period; and

6. Persons who will be engaging in business for the first time whose expected gross sales or receipts for any 12-month period will not exceed P100,000.

Q-17: How much annual registration fee shall be paid by taxpayers engaged in different lines of business which are all subject to VAT?

A-17: Only P1,000 annual registration fee shall be paid provided all these activities are conducted in one establishment or place of business.

Q-18 : Is a taxpayer engaged in both VAT and Non-VAT activities required to pay P1,000 for each activity?

A-18: No. A taxpayer engaged in both VAT and Non-VAT activities should pay a Registration Fee of P1,000 only provided that both activities are conducted in one establishment or place of business.

Q-19: Are taxpayers "becoming liable to VAT" required to register and pay the annual registration fee of P1,000?

A-19: Taxpayers whose gross receipts or sales in any 12-month period exceeded P500,000 shall be register as VAT taxpayer but shall no longer be required to pay the annual registration fee of P1,000 provided this has already been paid for the year.

Q-20: Are taxpayers transferring business address within the year either within the same district or to another district required to pay another registration fee of P1,000?

A-20: No. Since the annual registration fee is payable annually, they are no longer required to pay the registration fee to the new district office provided the P1,000 was already paid.

Q-21: Where will the taxpayer pay the registration fee?

A-21: The registration fee shall be paid to any accredited bank or, in the absence of any accredited bank, to an authorized Collection Officer/Municipal Treasurer in the Revenue District Office where the Head Office, branch, storage/production place is located.

Q-22 : For those taxpayers required to register anew, may they go directly to any accredited bank and pay the registration fee?

A-22: No. The taxpayers must first secure BIR Forms No. 1556-A and 1558 from the RDO where the business is located. After accomplishing both forms, the taxpayers shall then present BIR Form No. 1558 to any accredited bank for payment of registration fee.

Q-23: For taxpayers having multiple branch offices, storage places, places of production within the same RDO, how many Application for Registration and Annual Registration Fee Return shall be accomplished?

A-23: The taxpayer shall accomplish separate application forms for registration and Annual Registration Fee Return for the head office, each of its branches, and each storage place/place of production, even if located within the same district.

Q-24: How many Application for Registration shall be filed and how much registration fee shall be paid by husband and wife under the following circumstances:

1. engaged as lessor of conjugal real property

2. engaged in separate lines of business activities

A-24: For case 1, only one Application for Registration is required and only P1,000 registration fee shall be paid.

For case 2, two separate Application for Registration shall be filed and two separate payment of P1,000 each is required.

Q-25: In the case of lessor of real properties located in different places, are they required to register separately each unit being leased?

A-25: No. Only one Application for Registration is required is required and payment of only P1,000 is due, provided the lessor does not maintain an office within the premises of the leased properties.

Q-26: In the case of taxpayers registered as VAT or Non-VAT and thereafter qualified as withholding agent, is there a need to file a new Application for Registration as withholding agent? Are they required to pay an additional P1,000 registration fee?

A-26: Yes. The taxpayer is required to file a new Application for Registration as withholding agent. However, the taxpayer is no longer required to pay an additional P1,000 registration fee.

Q-27: Under the above situation, is there a need to update the previous Certificate of Registration?

A-27: Yes. The previous certificate shall be surrendered to the RDO for cancellation and a new Certificate of Registration shall be issued indicating therein all the registered activities, including that as a withholding agent.

Q-28: When shall a taxpayer "becoming liable to VAT" required to register?

A-28: A taxpayer becoming liable to VAT is required to register within thirty (30) days after the end of the month when the sales or receipts in any 12-month period exceeded P500,000.

Q-29: After complying with all the requirements for registration what document will be issued to the taxpayer?

A-29: Certificate of Registration (BIR Form No. 1556).

Q-30: When will the Certificate of Registration be issued to the taxpayer?

A-30: The Certificate of Registration (BIR Form 1556) will be issued not later than five (5) working days from filing of application and submission of all documentary requirements and upon presentation of duly validated Annual Registration Fee Return or Official Receipt.

Q-31: Is there a need for an ocular inspection of the place of business?

A-31: For taxpayers, who are re-registering their business, no ocular inspection shall be conducted before and after registration;

For taxpayers to be covered by VAT for the first time and those just commencing business, the ocular inspection shall be conducted after the issuance of the Certificate of Registration.

Q-32: Who will issue the Certificate of Registration?

A-32: The RDO there the head office, branch, storage/production place is located shall issue the Certificate of Registration.

Q-33: How many Certificate of Registration (BIR Form 1556) shall be issued by the Revenue District Office?

A-33: For every Application for Registration there shall be a corresponding Certificate of Registration to be issued for the head office and each branch, each storage place or each place of production being registered.

Q-34: How are the registered activities reflected in the Certificate of Registration?

A-34: The RDO issuing the Certificate of Registration shall reflect the registered activities in the Certificate by checking the box(es) corresponding to the approved registered activities, and cross-out the boxes not applicable. For example, if the registration is for VAT only, the RDO shall check the box for VAT and cross-out all the other boxes.

Q-35: Why is there a need to cross-out in the Certificate of Registration the activities which have not been applied for registration by the taxpayer?

A-35: To preclude the taxpayer from making undue alterations in his Certificate of Registration.

Q-36: What will the taxpayer do with the Certificate of Registration and the Annual Registration Fee Return?

A-36: The original copy of Certificate of Registration and the duly validated Annual Registration Fee Return are required to be displayed in any conspicuous place in the head office, branch office, storage place or place of production.

Q-37: What are the instances where a taxpayer can apply for cancellation of his registration?

A-37: A taxpayer can apply for cancellation of his registration in the following instances:

a. due to closure/cessation or termination of business;

b. transfer of place of business from one RDO to another;

c. change of registration from VAT to Non-VAT or vice-versa; and

d. change in organizational structure.

Q-38: Is there a particular form prescribed for Application for Cancellation of Registration?

A-38: Yes. BIR Form No. 1557 (Application for Cancellation) is prescribed.

Q-39: Is there also a need to apply to cancellation if it is for minor change only?

A-39: No. In case of changes such as typographical errors, change of business name, change of address within the same RDO, there is no need to file an Application for Cancellation. The taxpayer has only to notify the RDO in writing.

Q-40: Where shall the Application for Cancellation of Registration be filed?

A-40: It shall be filed with the RDO who issued the Certificate of Registration. For VAT taxpayer, he shall further notify the RDO where the Home Office is registered.

Q-41: If a taxpayer is in doubt of his status as VAT or Non-VAT, what is he supposed to do?

A-41: Go to the RDO who has jurisdiction over his place of business and seek assistance.

Q-42: Assume that Z.E.N. CORPORATION is engaged in VAT activities holding its main office in Quiapo. It maintains branch offices in the following locations:

Branch 1 (B-1) — Cebu

Branch 2 (B-2) — Davao

In addition, it also qualifies as a withholding agent. Payment of VAT and withholding taxes is centralized with the main office.

What, where to register and pay, how much registration fee and who will issue the Certificate of Registration?

A-42:

What to Register	Where to Register		How much Registration Fee	Where to pay the Registration		Who will issue Certificate of Registration
________________________________________________________________________________________________________________________________________________
For Main Office
VAT & W/A (main Office and Branches)		Quiapo	P1,000.00		Quiapo		Quiapo
For Branches
Branch 1
Branch Where no filing return is required		Cebu	P1,000.00		Cebu		Cebu
Branch 2
—do—		Davao	P1,000.00		Davao		Davao

Q-43: Given the same facts as in Q-43, but payment of withholding tax is decentralized, that is, payment of VAT will be at Quiapo but payment of Withholding Tax by B-1 and B-2 will be at Cebu and Davao respectively. What, where to registered and pay, how much registration fee and who will issue the Certification of Registration?

A-43:

What to Register	Where to Register		How much Registration Fee	Where to pay the Registration		Who will issue Certificate of Registration
_______________________________________________________________________________________________________________________________________________
VAT (main Office and Branches) W/A (main office only)		Quiapo	P1,000.00		Quiapo		Quiapo
For Branches
Branch 1
W/A (Branch)		Cebu	P1,000.00		Cebu		Cebu
Branch 2
W/A (Branch)		Davao	P1,000.00		Davao		Davao

Q-44: Given the same facts as in Q-43, the head office maintains its storage place (S-1) within its premises. It opens Branch #3 in Sampaloc, which is within the jurisdiction of Quiapo District.

What, where to register and how much registration fee shall be paid in addition to the previous registration?

A-44: 1) Storage place (S-1) located within the premises of the Head Office, no registration is needed.

2) For Branch #3, located within the same district as the Head Office, it is required to register in RDO Quiapo and pay the annual registration fee of P1,000 thereat.

Q-45: Given the same facts as in Q-43, the taxpayer maintains another storage (S-2) place in Binondo.

What, where to register and how much registration fee shall be paid?

A-45 : S-2 is required to register in RDO Binondo. It shall pay the P1,000 Annual Registration Fee provided business activities are conducted thereat.

Q-46: Assume that T.E.S. CORPORATION is engaged in both VAT and Non-VAT activities conducted in one establishment or place of business. How many application for registration shall be filed and how much registration fee shall be paid?

A-46: The taxpayer shall file only one application for registration for VAT and Non-VAT activities and shall pay P1,000 registration fee.

Q-47: Assume that C.O.Y. CORPORATION has a Main Office in Makati engaged in activities subject to VAT and a branch office in Quezon City engaged in activities subject to Non-VAT. How many application for registration shall be filed and how much registration fee shall be paid?

A-47: The Head Office shall register in Makati as a VAT taxpayer and pay the Annual Registration Fee of P1,000. The branch office in Quezon City shall register as a Non-VAT taxpayer with the Revenue District Office where the branch is located and pay the Annual Registration Fee of P1,000.

Q-48: Assume that H and W, husband and wife, are separately engaged in the following business:

HUSBAND
Trucking	P400,000.00
Trading	150,000.00
Barbershop	100,000.00
	P650,000.00
Jeepney Operator	124,000.00
	P774,000.00
	=========
WIFE
Pharmaceutical	P100,000.00
Parlor	50,000.00
Restaurant	100,000.00
	250,000.00
	=========

All these businesses are conducted in only one establishment. H and W have separate TIN and the businesses were separately registered in the name of H or W with the Department of Trade and Industry.

How do H and W register their businesses? How much registration fee will be paid by them?

A-48: H shall file one application for Registration covering all his lines of business and pay the P1,000 registration fee. His trucking, trading and barbershop business will be registered as VAT while that of jeepney operator will be registered as Non-VAT.

W shall also file a separate application for registration covering all lines of business under her name and pay the P1,000 registration fee. Since the aggregate gross receipts on all the lines of business did not exceed P500,000, W's registration will be Non-VAT.

Q-49: Assume that the only business of H and W is leasing out a building which is a conjugal property? How do H and W register their business? How much registration fee will be paid by them?

A-49: Only one application for registration shall be filed, either in the name of H or W, and only P1,000 registration fee shall be paid.

All revenue officials and employees are enjoined to give this Circular as wide a publicity as possible.

Adopted: 1 Dec. 1995

(SGD.) LIWAYWAY VINZONS-CHATO
Commissioner of Internal Revenue