8box Solutions Inc.


Contact Number: 09369340340
Email: sales@8box.solutions

REVENUE REGULATIONS NO. 2-2019 issued on March 19, 2019 implements the imposition of Excise Tax on Non-Essential Services as provided under Section 150-A of the National Internal Revenue Code (NIRC), as introduced by Section 46 of the Tax Reform for Acceleration and Inclusion (TRAIN) Law. There shall be levied, assessed and collected an Excise Tax equivalent to five percent (5%) based on gross receipts derived from the performance of services, net of Excise Tax and Value-Added Tax (VAT) on invasive cosmetic procedures, surgeries and body enhancements directed solely towards improving, altering, or enhancing the patient’s appearance and do not meaningfully promote the proper functions of the body or prevent or treat illness or disease. For purposes of these Regulations, the term “Gross Receipts” shall mean the total amount of money or its equivalent representing the contract price or service fee, including deposits applied as payments for services rendered and advance payments actually or constructively received for services performed or to be performed for another person, but excluding five percent (5%) Excise Tax and VAT. For purposes of determining the VAT base, the gross receipts shall be inclusive of the 5% Excise Tax. The Excise Tax imposed shall not apply to procedures necessary to ameliorate a deformity arising from or directly related to a congenital or developmental defect or abnormality, a personal injury resulting from an accident or trauma, or disfiguring disease, tumor, virus or infection. Cases and treatments covered by the National Health Insurance Program shall also not be subject to this tax. Likewise, Non-Invasive Cosmetic Procedures are excluded from the coverage. Any person, whether natural or juridical, performing invasive cosmetic procedures, surgeries, and body enhancements directed solely towards improving, altering, or enhancing the patient’s appearance and do not meaningfully promote the proper functions of the body or prevent or treat illness or disease and liable to pay Excise Tax imposed under Section 150-A of the NIRC, as amended, shall file a return of its monthly gross receipts using BIR Form No. 2200-C (Excise Tax Return on Invasive Cosmetic Procedures, Annex A), together with the Monthly Summary of Cosmetic Procedures Performed (using the prescribed format on Annex B of the Regulations), and pay the Excise Tax due, if any, at the same time within ten (10) days following the close of the month. Except as the Commissioner of Internal Revenue (CIR) otherwise permits, the return shall be filed with and the Excise Tax remitted to any Authorized Agent Bank (AAB) under the jurisdiction of the Large Taxpayers Service (LTS)/Revenue District Office (RDO) where the taxpayer (Head Office of the business establishment) is registered. For taxpayers located outside the National Capital Region (NCR) and within the municipality or city where there are no duly accredited AABs, the BIR Form 2200-C shall be filed and payments shall be made to the Collection Agent where such taxpayer is registered. In cases where no invasive cosmetic procedures were performed during the return period, hence no Excise Tax due, BIR Form 2200-C shall still be filed with the Excise Large Taxpayers Field Operations Division (ELTFOD) for Large Taxpayers, or the concerned RDO for taxpayers in the NCR or Excise Tax Area (EXTA) in Regional Offices for taxpayers outside the NCR. Taxpayers filing via Electronic Filing and Payment System (eFPS) shall comply with the provisions of the eFPS Regulations. The Secretary of Finance, upon the recommendation of the CIR, may, by rules and regulations, prescribe the manner and time for filing of the return and payment of the Excise Tax other than as prescribed under Section 130, Chapter I, Title VI of the Tax Code, as amended. Every person subject to Excise Tax shall issue an Official Receipt (OR) for services performed whether invasive/non-invasive. The total amount which the patient/client pays or is obligated to pay to the service provider including the Excise Tax and VAT, if applicable: Provided, that: a. The amount of VAT shall be shown as a separate item in the OR (the VAT base is inclusive of the 5% Excise Tax); b. Discounts given shall be indicated in the OR, otherwise the same shall not be allowed as deduction from gross receipts; c. If the procedure performed is non-invasive and/or invasive but considered exempt from Excise Tax, the term Exempt from Excise Tax shall be shown on the OR; d. If the services performed involves both invasive (whether excisable or exempt from Excise Tax) and non-invasive (not excisable) procedures, a separate OR may be used for the excisable and non-excisable services rendered. Notwithstanding the provisions of Section 233, all persons subject to Excise Tax under Section 150-A of the Tax Code shall, in addition to the regular accounting records required, maintain a subsidiary ledger on which every service rendered/performed on any given day is recorded. The subsidiary ledger shall contain the following information: a. Name of Patient; b. Taxpayers Identification Number; c. OR number and date of issue; d. Invasive cosmetic procedures performed (indicate whether excisable or not) If not excisable, provide Remarks column to explain why non-excisable. e. Non-Invasive cosmetic procedures performed; f. Gross Receipts for non-invasive (net of VAT); g. Gross Receipts for invasive procedures  Excisable (net of VAT and Excise Tax)  Excisable (VAT-exempt)  Non-Excisable (net of VAT); h. 5% Excise Tax due; i. 12% VAT due; and j. Total amount collected from client-customer. Every person subject to Excise Tax under Section 150-A of the NIRC, as amended, shall register as Excise Taxpayer engaged in the performance of Invasive Cosmetic Procedures on or before March 31, 2019 with the Excise Large Taxpayers Regulatory Division (ELTRD) for Large Taxpayers, or with the RDO for Non-Large Taxpayers where the taxpayer is required to be registered, for updating of its Certificate of Registration. This does not preclude the BIR from enforcing the collection of the corresponding Excise Taxes due on invasive cosmetic procedures, surgeries and body enhancements performed starting January 1, 2018 (the effectivity of the TRAIN Law). Any violation of the provisions of the Regulations shall be subject to the corresponding penalties under Sections 250, 251 and 255 of the NIRC, as amended, and Revenue Memorandum Order No. 7-2015. Pursuant to Section 254 of the NIRC, as amended, any person who willfully attempts in any manner to evade or defeat any tax imposed under this Regulations or the payment thereof shall, in addition to other penalties provided by law, upon conviction thereof, be punished with a fine of not less than Five Hundred Thousand Pesos (₱500,000.00) but not more than Ten Million Pesos (₱10,000,000.00), and imprisonment of not less than six (6) years but not more than ten (10) years: Provided, That the conviction or acquittal obtained under this Section shall not be a bar to the filing of a civil suit for the collection of taxes. If the offender is not a citizen of the Philippines, he shall be deported in accordance with immigration laws, rules and regulations. All individual practitioners and juridical entities, including medical clinics and hospitals, performing invasive cosmetic procedures, whether in a clinic or hospital or any place other than clinic or hospital, shall update their current Certificate of Registration (COR) to include the tax type – Excise Tax on Invasive Cosmetic Procedures using BIR Form 1905 with the concerned offices – ELTRD or Large Taxpayers Assistance Division (LTAD) for Large Taxpayers registered under the LTS and RDO having jurisdiction over the non-large taxpayer. Individual practitioners or juridical entities performing non-invasive cosmetic procedures shall be required to execute and submit a Sworn Statement stating that only noninvasive cosmetic procedures are being performed by the said individual practitioners or juridical entities. For juridical entities, the Sworn Statement shall be executed by the President/Chief Executive Officer of the company.