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By : Abigail Ibaez
Input Tax
1. VAT Registered Person 2. In the course of trade or business 3. Duly substantiated (VAT OR) or (VAT Invoice)
Exercise
A VAT registered taxpayer is also engaged in VAT exempt transactions. The following VAT exclusive data are made available: Domestic VAT Subject Sales 1,000,000 VAT Exempt Sales 500,000 Purchases of supplies from 100,000 VAT supplier (VAT subject and VAT exempt) Purchase of merchandise from 200,000 VAT registered trader
Exercise
REQ: a. Prepare the necessary journal entries b. Compute VAT Payable
Construction in Progress
For the purpose of claiming input tax, it shall be considered a purchase of service, which shall be determined based on the progress billings. Contract for the sale of service where only labor will be supplied Labor Cash Basis Materials Accrual Basis Input tax claimed while construction in progressno additional input tax can be claimed upon completion of the asset
Exercise -SIT
A. A VAT registered seller of goods has the following cash transactions for the second quarter of 2009 (VAT exclusive): 1. Purchased goods for P500,000 2. Sold the goods purchased for P500,000 to a Government Owned Controlled Corporation for P1,000,000 Prepare the necessary journal entries in the books of the seller
Exercise -SIT
B. A VAT Registered service provider has the following transactions for the first quarter of 2009: 1. Purchased materials for use in contract with the government paying P896,000, gross of VAT 2. Collected P1,000,000 out of the P5,000,000 contract price, net of VAT Prepare the necessary journal entries in the books of the service provider.
Exercise WVAT
A. A VAT registered taxpayer has waived his privilege to claim input tax credit and filed a notice of availment of the option to pay the tax through the withholding process, He has the following transactions during the month: VAT Sales, net of 12% VAT P1,000,000 Purchases, 12% VAT exclusive 500,000 Prepare the necessary entries in the books of the seller and the buyer, and compute VAT payable of the seller.
Exercise WVAT
B. A VAT registered taxpayer has engaged the services of a non resident service provider for P500,000, net of 12% VAT. Prepare the necessary entries in the books of the VAT registered taxpayer
Additional Exercises
A. Vice Ganda, VAT registered, had the following purchases during the month of January 2009: Goods for sale, inclusive of VAT 246,400 Supplies, exclusive of VAT 20,000 Office Air Con, total invoice price (Life = 3 years) 56,000 Home appliance for residence, gross of VAT 17,920
Additional Exercises
Services for store repair contractor, not VAT registered (total invoice amount) 33,000 Services for repainting of store, total invoiced amount evidenced by ordinary receipt issued by contractor 4,480
How much was the total allowable input tax for the month?
Additional Exercises
B. Yanyan, VAT registered taxpayer has the following data for the first month of the second quarter of 2009: Domestic Sales, net of 12% VAT 2,000,000 Export Sales 3,000,000 Purchases attributed to domestic sales , net of 12% VAT 500,000 Purchases attributed to export sales, net of 12% VAT 1,500,000
Additional Exercises
Purchases attributed to both domestic and export sales, net of 12% VAT 700,000 How much is the total input taxes which may be claimed as tax credit or refund? Assuming the taxpayer decides to apply a portion of the refundable tax against the output tax, how much input tax can be claimed as tax credit or refund?