Section 4Sec./Art. 4

Section 7 of Republic Act No. 7716 is hereby amended to read as follows:

"Section 7. Section 107 of the National Internal Revenue Code, as amended, is hereby further amended to read as follows:

"Section 107. Registration of value-added taxpayers. (a) In General. Any person subject to a value-added tax under Sections 100 and 102 of this Code shall register with the appropriate Revenue District Officer and pay an annual registration fee in the amount of One thousand pesos (P1,000) for every separate or distinct establishment or place of business and every year thereafter on or before the last day of January. Any person just commencing a business subject to the value-added tax must pay the fee before engaging therein.

"A person who maintains a head or main office and branches in different places shall register with the Revenue District Office which has jurisdiction over the place wherein the main or head office is located. However, the fee shall be paid to the Revenue District Officer, collection agent, authorized treasurer of the municipality where each place of business or branch is situated.

"(b) Persons commencing business. Any person who expects to realize gross sales or receipts subject to value-added tax in excess of the amount prescribed under Section 103(z) of this Code for the next 12-month period from the commencement of the business shall, within thirty (30) days before the start of the said business register with the Revenue District Officer who has jurisdiction over his principal place of business and shall pay the annual registration fee prescribed in the preceding paragraph.

"(c) Persons becoming liable to the value-added tax. Any person whose gross sales or receipts in any 12-month period exceeds the amount prescribed under Section 103(z) of this Code for exemption from the value-added tax shall register and pay the annual registration fee prescribed in paragraph (a) of this section within thirty (30) days after the end of the last month of that period, and shall be liable to the value-added tax commencing from the first day of the month following his registration.

"(d) Optional registration of exempt person. Any person whose transactions are exempt from value-added tax under Section 103(z) of this Code, Section 103(a), (b), (c), and (d) of this Code with respect to export sales only, and Section 103(j) with respect to services of franchise grantees of radio and/or television broadcasting as defined under Section 117 of this Code, may apply for registration as a VAT-registered person not later than ten (10) days before the beginning of the taxable quarter and shall pay the annual registration fee prescribed in subparagraph (a) of this section.

"In any case, the Commissioner may, for administrative reason, deny any application for registration.

"For purposes of this Title, any person registered in accordance with the provisions of this section shall be referred to as a 'VAT-registered person.' Each VAT-registered person shall be assigned only one taxpayer's identification number.

"(e) Cancellation of registration. The registration of any person who ceases to be liable to the value-added tax shall be cancelled by the Commissioner upon filing of an application for cancellation of registration. Any person who opted to be registered under paragraph (d) of this section may, under regulation of the Secretary of Finance, apply for cancellation of such registration."