BIR launches week-long TCVD

CEBU, Philippines — With the intention to build good will and educate taxpayers of their tax obligations, the Bureau of Internal Revenue in Central Visayas (BIR-7) launched the week-long Friendly Tax Compliance Verification Drive (TCVD).

The drive, which started last Monday, February 10, 2025, encouraged taxpayers in resolving tax issues in order to help them correct any non-compliance before penalties are imposed.

BIR-7 regional director Douglas Rufino noted that the drive is intended to provide business owners with a comprehensive understanding of their duties as taxpayers without the fear of citations or penalties.

“The usual approach kasi namin noon is magkaroon ng citation, confiscation, we issue it immediately. Ngayon po, dahil in observance ng Tax Awareness Month, we just apply the friendly reminders to the taxpayers,” said Rufino.

The BIR officers have been touring Cebu and Bohol, covering approximately 4,000 establishments in the first few days of the campaign.

Nationally, on its first day alone, more than 24,000 establishments were visited as part of the drive.

By the end of the drive, they expect to reach around 80-percent of taxpayers in the region.

Among the key violations identified are the non-issuance of receipts, missing books of accounts, and failure to display the certificate of registration.

Rufino shared that the lack of proper invoices issued to customers is essential for Value Added Tax (VAT) and income tax computation.

The director added that the importance of businesses understanding how tax obligations are calculated.

For example, without proper invoices, taxpayers cannot accurately report their gross sales, making it difficult to calculate VAT and income taxes correctly.

Many businesses only issue receipts to a few customers, leaving the majority without proper documentation for tax purposes.

Additionally, some taxpayers had not yet converted their official receipts into the required sales or service invoices under the Ease of  Paying Taxes (EOPT) Act.

“How could they accurately pay the corresponding percentage or value added TAX and income at the end of the year kung yung invoice naman is kulang kulang,” said Rufino.

This is why with the help of this drive, the BIR now warned that a lack of proper records and invoicing would lead to inaccurate tax payments, which could eventually result in penalties growing exponentially.

During the campaign, the BIR focused on visiting a variety of business types, with retail stores, restaurants, healthcare providers, automotive shops, and construction supply stores.

Evelen Tiu, the owner of Cheeva Spa located at Barangay Panagdait, Cebu City, welcomed the BIR’s friendly approach in visiting the business to check the compliance.

“Every Feb man jud na sila mag tax mapping, so last year mao tong they required us to register sa VAT maoto nag VAT nami,” said Tiu.

Tiu, operating the business for almost six years, reflected that while there may be fear surrounding the BIR’s regulations, following the rules and keeping up to date with payments should alleviate that concern.

“Basta mo follow lang, up to date atong payment di rajud dapat hadlokan ang BIR,” she added.

Throughout the visits, officers of BIR-7 took the time to explain the common issues that the business establishments face.

As mentioned by Rufino, this TVCD is also a way to build “good will” with taxpayers, especially so that they can ask questions and seek clarification on their responsibilities.

Meanwhile, BIR Commissioner Romeo “Jun” Lumagui Jr. shared that the information drive is not only about identifying violations but also about educating businesses on their obligations.

As the bureau observed, many establishments have been non-compliant simply because they are unaware of the full extent of their tax responsibilities.

"We are here to educate our taxpayers, not to penalize them. Education leads to  compliance. Improved services lead to compliance. Our revenuers from Luzon, Visayas, and  Mindanao will be visiting businesses to explain the fundamentals of taxation to everyone,"  Commissioner Lumagui stated.   FPL (CEBU NEWS)