Tax implications of ‘passed-on’ Gross Receipts Tax

On Nov. 15, 2016, the Bureau of Internal Revenue (BIR) issued Revenue Memorandum Circular (RMC) No. 127-2016, which lifted the suspension of revenue issuances previously suspended under RMC No. 69-2016. One of these issuances is RMC No. 62-2016 (Circular), dated June 13, 2016, which clarifies the proper tax treatment of “passed-on” Gross Receipts Tax (GRT).
GRT is a form of percentage tax, which is defined as a business tax imposed on persons or on entities that sell or lease goods or services in the course of trade or business in the Philippines.