Date: January 7, 2025

Businesses in the Philippines holding inventory for sale must submit an Inventory List to the BIR annually. This report outlines the details of all inventories held as of the last day of the financial year.

Key Points to Remember:

  • What is the Inventory List?
    The Inventory List is a mandatory compliance document detailing quantities, descriptions, unit costs, and total costs of stocks-in-trade, materials, and goods held by the business.
  • Submission Deadline
    The deadline is within 30 days of the financial year-end. For calendar-year businesses, this means January 30. Fiscal-year businesses follow their respective year-end schedules.
  • Additional Reporting Requirements
    In 2015, the BIR issued RMC No. 57-2015, providing detailed guidelines for the submission of the Inventory List along with additional required records and schedules. Certain businesses must submit supplementary documents alongside their Inventory List. This applies to industries such as manufacturing, wholesaling, retailing, real estate, and services (e.g., construction companies and building contractors). Companies with tangible asset-rich balance sheets—where at least half of the total assets consist of working capital assets like accounts receivable or inventory—are required to comply.

    Required Additional Reports:

    1. Manufacturing, Merchandising, or Retail Companies:
      • Inventory of merchandise, raw materials, goods in process, and finished goods.
    2. Real Estate Companies:
      • Inventory of saleable units with corresponding costs per project and/or trade accounts receivable reconciliation.
    3. Construction Companies:
      • Schedule of outstanding receivables (beginning and ending) and realized gross profit per project.

    Soft Copy Submission:

    Soft copies of the Inventory List and additional schedules must be submitted on an accurately labeled DVD-R. A Notarized Certification signed by an authorized representative must accompany the DVD-R, certifying the accuracy of its contents. A template for the certification can be found in the annexes of RMC No. 57-2015. You may download a copies of Annex A to C and Annex D.

    Non-compliance with these requirements can lead to penalties and further investigations by the BIR.

  • Penalties for Non-Compliance
    Failure to submit accurate and complete reports may lead to penalties, audits, or financial investigations.

For further guidance, consult your assigned Beppo account manager or refer to RMC No. 57-2015 for specific submission formats and requirements.

Disclaimer for Beppo Clients:
Please be advised that this service is not included in the monthly scope of work.

Regards,

The Beppo Team