Sei sulla pagina 1di 13

VALUE-ADDED TAX

VALUE-ADDED TAX

Value-Added Tax is a form of sales tax. It is a


tax on consumption levied on the sale, barter,
exchange or lease of goods or properties and
services in the Philippines and on importation
of goods into the Philippines. It is an indirect
tax, which may be shifted or passed on to the
buyer, transferee or lessee of goods, properties
or services.
TAXABLE TRANSACTION
Transaction Rate

Sale or exchange of Goods or 12%


Properties or Services
Zero-Rated Sales of Goods or 0%
Properties or Services
Effectively Zero-Rated 0%
transactions
Exempt Transaction
PERSONS LIABLE
In general – Any person who, in the course of his trade or
business, sells, barters, exchanges, or leases goods, or
properties, or renders services, and any person who import
goods, shall be liable to VAT imposed in Sections 106 to 108 of
the Tax Code.
Sale in the ordinary course of business
Goods or properties – Selling price
Services – Gross receipts
Importation- the importer whether individual or corporation
and whether or not made in the course of his trade or business
shall be liable to VAT (Landed cost)
VAT REGISTRATION
A. MANDATORY REGISTRATION
1. Any person who, in the course of his trade or
business, sells, barters, exchanges, or leases goods,
or properties, or renders services, and any person
who imports goods, shall be liable to register if:
 The aggregate amount or actual gross sales or
receipts exceed P 3,000,000.00 for the past 12
months (other that those that are exempt)
 There are reasons to believe that the gross sales or
receipts for the next 12 months will exceed
P3,000,000.00
2. Radio and/or television broadcasting companies
whose annual gross receipts of the preceding year
exceeds P 10,000,000.00. Mandatory registration
applies within 30 days from the end of the taxable
year.
3. A person required to register as VAT taxpayer but
failed to register.

NOTE: any person who fails to register as VAT shall be


liable to VAT, as if he was a VAT registered person but
without the benefit of input tax credits for the period
he was not properly registered.
B. OPTIONAL REGISTRATION
1. Any person who is VAT-exempt or not required to
register for VAT may elect to be VAT registered by
registering with the RDO that has jurisdiction over
the head office of that person and pay the annual
registration fee of P 500.00 for every separate and
distinct establishment. (shall not be allowed to
cancel registration for the next 3 years).
2. Any person who is VAT-registered but enters into
transactions which are exempt from VAT (mixed
transactions) may opt that the VAT apply to his
transactions which would have been exempt.
3. Franchise grantees of radio and/or television
broadcasting companies whose annual gross
receipts of the preceding year do not exceed P
10,000,000.00. This option, once exercised, shall
be irrevocable.

NOTE: the above stated taxpayers may apply for vat


registration not later than 10 days before the
beginning of the calendar year and shall pay the
annual registration fee.
CANCELLATION OF REGISTRATION
1. If he makes a written application and can
demonstrate to the commissioner’s satisfaction that
his gross sales or receipts for the following 12
months, other than those that are exempt will not
exceed P 3,000,000.00.
2. If he has ceased to carry on his trade or business
and does not expect to recommence any trade or
business within the next 12 months.

NOTE: cancellation will be effective from the first day


of the following month the cancellation was approved.
Illustration: Mr. A signified his intention to be taxed at “8% income tax in lieu of the
graduated income tax rates and percentage tax under Section 116” in his 1st Quarter Income
Tax 2018. However, his gross sales/receipts during the taxable year have exceeded the VAT
threshold as follows:

January P 250,000.00
February 250,000.00
March 250,000.00
April 250,000.00
May 250,000.00
June 250,000.00
July 250,000.00
August 250,000.00
September 250,000.00
October 1,000,000.00
November 1,000,000.00
December 1,000,000.00
Total gross Sales/Receipts P 5,250,000.00
Question: When will MR. A be subjected to VAT?
Question: When will MR. A be subjected to VAT?

ANSWER:

NOVEMBER 1, 2018 (RMC 23-2018 1ST DAY OF THE MONTH FOLLOWING THE
MONTH THE TAXPAYER BREACHED THE 3M BRACKET)
COMPUTATION OF VALUE ADDED TAX:

Output VAT (VATable Sales X 12%)


− Input VAT (VATable Purchases X 12%)

VAT PAYABLE
SOURCES OF OUTPUT VAT
1. ACTUAL SALE (cash or on account)
Sales where there are actual exchanges between
buyer and seller in an ordinary course of trade or
business.

2. TRANSACTION DEEMED SALES


Certain transactions which are not actually sales
because of the absence of actual exchange between
the seller and the buyer

Potrebbero piacerti anche