Value-added tax due on the sale or lease of taxable goods or property or services by a VATregistered person

Sales or gross receipts Multiplied by VAT Rate Output VAT

XXX 12% XXX

Sale of Goods

Rendering of Services

 Amount

or value which the VAT rate will be applied in computing the output tax Equal to the gross selling price or gross receipts
Allowable

deductions to the gross selling price: Sales Returns and Allowances Sales Discounts It is determined and granted at the time of sale It is expressly indicated in the invoice Should form part of gross sales duly recorded Granting of discount does not depend on happening of a future event

The following items are taken from Rebecca Merchandising:

List Price 120,000 Trade Discount 20,000 Cash discounts if paid w/in 10 days 6,000 Sales returns & allowances with proper credit during the month 10,000 What would be the amount of sales subject to VAT?

List Price Less: Trade Discount Sales returns & allow. Sales subject to VAT

120,000

20,000 10,000

30,000 90,000

 Given

Amount:

Sales or gross receipts Sales or gross receipts before VAT Sales, net of VAT Sales, exclusive of VAT

Output VAT = Given Amount x 12%

 Given

Amount:

Total VAT sales invoice Sales, gross of VAT Sales, inclusive of VAT

Output VAT = Given Amount x 12%/1.12% Or Output VAT = Given Amount /9.33333333

1. Cindy Store sells tobacco products all over Bohol. The sale by the store in October, 2012 was P180,000. 85% of the sales are normally on account. How much is the output tax for the month of October 2012?
Answer: 180,000 x 12% P21,600

2. Joey sold goods at an invoice value of P168,000 to Kris on account. Kris subsequently sold the goods to James for P182,000 net of VAT. All of them are VAT registered taxpayers. How much is the output tax on this sale for Joey? For Kris?

Answer:

Joey = 168,000/1.12 x .12 = P18,000 Kris = 182,000 x .12 = P21,840

3. Ruiz Services is engaged in the leasing of apartments. For the current month, Ruiz reported the following, exclusive of VAT:
Cash

collected for rent this month 150,000 Cash collected for rent last month 30,000 Cash collected for rent next month 45,000 Accrued rent receivable for next month 25,000 How much is the output tax of Ruiz for this month? Cash collected for rent this month Cash collected for rent last month Cash collected for rent next month Taxable Base Multiply by VAT Rate Output Tax 150,000 30,000 45,000 225,000 12% 27,000

4. Buntog, a VAT registered business, reported sales (exclusive of VAT) of 350,000. There was no beginning inventory. Of the total purchases for the quarter, 50% were sold, 30% were unsold at the end of the quarter, and 20% were consumed for personal use of Buntag, the sole proprietor of Buntog. How much is the output VAT? Actual Sales 350,000 Deemed Sales(350,000 / 50% x 20%) 140,000 Taxable Base 490,000 Multiply by VAT Rate 12% Output VAT 58,800

The difference between the output tax and input tax VAT Payable the excess of output tax over the input tax VAT Refundable the excess of input tax over the output tax

***the excess input tax can be carried over to the succeeding quarter or quarters ***any input tax attributable to zero-rated sales by a VAT-registered person, may at his option be refunded or applied for a tax credit

Output VAT on Sales Less: Input VAT on purchases & services Creditable VAT withheld Net VAT payable (refundable)

XXX
XXX XXX

XXX XXX

1. Ayco is a VAT registered business with a net sales of P5,500,000. Total purchases during the quarter is 5,096,000 inclusive of VAT. If the cost of sale is 70% of sales, how much is the VAT payable for the quarter?

Output Tax(5,500,000 x .12) Less: Input Tax(5,096,000/1.12 x .12) Net VAT Payable

660,000 546,000 114,000

2. A, a non-VAT registered business has an aggregate annual sales of P2,500,000. Its total purchases of merchandises from VAT registered suppliers amounted to 1,568,000 inclusive of VAT. How much is the total VAT payable of A. Output VAT (2,500,000 x .12) Less: Input VAT VAT Payable 300,000 0 300,000

3. Langoy Products is a processor of canned sardines. It purchases sardines from local fishermen. In a month, it had the following sales and purchases, excluding tax. Sales 980,000 Purchases of Sardines 320,000 Purchases of Containers 100,000 The VAT Payable is?
Output VAT (980,000 x .12) 117,600 Less: Input Taxes Presumptive Input Tax(320,000x.04) 12,800 Purch. of Containers(100,000 x .12) 12,000 24,800 VAT Payable 92,800

4. ENRO, a newly VAT registered business, has the following data in January (all amounts are inclusive of tax): Merchandise inventory 204,000 Actual VAT paid on the inventory 16,000 Sales, total invoice 469,000 Purchases 57,400 50% of the merchandise inventory on Jan. 1 were purchased from non-VAT registered sellers. VAT payable on ENRO is: Output Tax (469,000 / 1.12 x .12) 50,250 Less: Input Tax Purchases (57,400 / 1.12 x .12) 6,150 Transitional Input Tax Inventory(204,000 x 50% x 2%) 2,040 Actual VAT Paid 16,000 16,000 22,150 VAT Payable 28,100