REVENUE MEMORANDUM CIRCULAR NO. 39-2018 issued on May 24, 2018 reiterates and clarifies that the goods or properties originally intended for sale or use in business, including capital goods, disposed of or existing as of the date of change of status of a taxpayer from Value-Added Tax (VAT) to Non-VAT are subject to VAT imposed under Section 106(A) of the Tax Code of 1997, as further amended by Republic Act No. 10963 (Tax Reform for Acceleration and Inclusion Law). Hence, taxpayers are required to file the quarterly VAT return covering the period when the change of status transpired and pay the corresponding VAT due thereon.