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    Value-Added Tax (Vat)

    Uploaded by

    Hardly Dare Gonzales
    The document summarizes key aspects of value-added tax (VAT) in the Philippines. It discusses VAT rates, compliance requirements, and sources and timing of output and input VAT. Specifically: 1. VAT rates are 12% for most goods/services, 0% for exports and exempt items, and 1-3% for non-registered taxpayers. 2. VAT compliance involves filing monthly or quarterly returns calculating output VAT (taxes collected) against input VAT (taxes paid) to determine taxes due or refunds. 3. Sources of output VAT are domestic sales of goods, services, and properties, while sources of input VAT include purchases, capital goods, and tax credits.

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    © All Rights Reserved
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    Value-Added Tax (Vat)

    Uploaded by

    Hardly Dare Gonzales
    35 views23 pages
    The document summarizes key aspects of value-added tax (VAT) in the Philippines. It discusses VAT rates, compliance requirements, and sources and timing of output and input VAT. Specifically: 1. VAT rates are 12% for most goods/services, 0% for exports and exempt items, and 1-3% for non-registered taxpayers. 2. VAT compliance involves filing monthly or quarterly returns calculating output VAT (taxes collected) against input VAT (taxes paid) to determine taxes due or refunds. 3. Sources of output VAT are domestic sales of goods, services, and properties, while sources of input VAT include purchases, capital goods, and tax credits.

    Original Description:

    VALUE ADDED TAX

    Original Title

    VAT_Group-3

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    The document summarizes key aspects of value-added tax (VAT) in the Philippines. It discusses VAT rates, compliance requirements, and sources and timing of output and input VAT. Specifically: 1. VAT rates are 12% for most goods/services, 0% for exports and exempt items, and 1-3% for non-registered taxpayers. 2. VAT compliance involves filing monthly or quarterly returns calculating output VAT (taxes collected) against input VAT (taxes paid) to determine taxes due or refunds. 3. Sources of output VAT are domestic sales of goods, services, and properties, while sources of input VAT include purchases, capital goods, and tax credits.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    35 views23 pages

    Value-Added Tax (Vat)

    Uploaded by

    Hardly Dare Gonzales
    The document summarizes key aspects of value-added tax (VAT) in the Philippines. It discusses VAT rates, compliance requirements, and sources and timing of output and input VAT. Specifically: 1. VAT rates are 12% for most goods/services, 0% for exports and exempt items, and 1-3% for non-registered taxpayers. 2. VAT compliance involves filing monthly or quarterly returns calculating output VAT (taxes collected) against input VAT (taxes paid) to determine taxes due or refunds. 3. Sources of output VAT are domestic sales of goods, services, and properties, while sources of input VAT include purchases, capital goods, and tax credits.

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    VALUE-ADDED

    TAX (VAT)
    VATABLE SALES /
    RECEIPT
    NON VAT REGISTERED TAXPAYER
    = 3 % , now lowered to
    1% general percentage tax.
    EXEMPT:
    COOPERATIVES
    INDIVIDUALS OPTING TO THE
    8% COMMUTED TAX

    CO MPLIANCE
    : QUARTERLY
    VAT REGISTERED TAXPAYER
    TAX CREDIT METHOD:

    OUTPUT VAT xx
    Less: INPUT VAT (xx
    VAT Due ) xx
    Less: Tax Credit
    VAT still due (xx
    )
    xx
    OUTPUT VAT

    12 % VAT
    computed on the
    sales/receipts.
    MONTHLY - MONTHLY -
    COMPLIANC QUARTERLY

    E OF VAT • MONTHLY - 2550M FORM


    • QUARTERLY - 2550Q FORM
    TAXPAYER
     SALE OF VATABLE
    GOODS (12% OF
    SELLING PRICE)
    SOURCES
    EXEMPT: OF OUTPUT
    When selling price is unreasonably
    lower. If it is lower it will be based VAT (12%)
    on the 12% fair value.
    (DOMESTIC
     SALE OF VATABLE CONSUMPTION)
    SERVICES (12% GROSS
    RECEIPTS)

     SALE OF VATABLE REAL


    PROPERTIES (12%
    GROSS SELLING PRICE)
    TRANSACTIONS
    DEEMED SALE
    (12% FAIR SOURCES
    VALUE)
    OF OUTPUT
     Consumption not in the
    ordinary course of
    VAT (12%)
    business (12 % fair value)
    (DOMESTIC
     Retirement or cessation of business CONSUMPTION)
    (12 % of fair value or book value
    whichever is lower)

     Cancellation of VAT status


    (12 % fair value)

     Consignment if not withdrawn in


    60 days ( 12% fair value)
    • SALE OF VATABLE GOODS
    (12% OF SELLING PRICE)
    MONTH OF SALE

    • SALE OF VATABLE SERVICES TIMING OF


    RECOGNITIO
    (12 % GROSS RECEIPTS)
    MONTH OF COLLECTION

    • SALE OF VATABLE REAL


    PROPERTIES (12% GROSS
    SELLING PRICE)
    N
    MONTH OF SALE OR
    BY INSTALLMENT
    (Installment may apply if initial

    payment is <25% selling price.)


    • TRANSACTIONS DEEMED SALE
    (12% FAIR VALUE)
    MONTH DEEMED SOLD
    SOURCES OF
    ZERO RATED OUTPUT VAT (0 %)
    SALES OF GOODS
    ( FOREIGN
    ZERO RATED CONSUMPTION )
    SALES OF
    PROPERTIES
    ZERO RATED
    SALES OF
    GOODS
    2

    1 SALE OF GOODS TO 3
    INTERNATIONAL CARRIERS
    DIRECT EXPORT - needs SALE OF GOODS TO
    to have inflow of foreign PERSONS WITH INDIRECT
    currency TAX EXEMPTION
    1. SALES OF SERVICE TO
    NON-RESIDENTS
    REQUIREMENT:
    Rendered in the Philippine and paid for

    ZERO RATED acceptable foreign currencies

    2. OUTGOING TRANSPORT
    SALES OF BY DOMESTIC CARRIERS

    3. SALE OF FUEL FROM RENEWABLE


    PROPERTIES SOURCES OF ENERGY
     Geothermal
     Solar
     Wind
     Bio Mass
     Hydro
    4. SERVICE TO PESON
    WITH INDIRECT TAX
    ZERO RATED EXCEMPTION

    SALES OF
    PROPERTIES 5. SERVICE TO
    INTERNATION
    AL
    CARRIERS
    INPUT VAT

    • The VAT paid on the


    purchases.
    • The VAT paid on
    domestic goods or
    services or capital
    goods.
    1. Incurred in the
    course of business

    Claimable 2. Billed by a VAT


    INPUT VAT taxpayer
    (except import)

    3. Evidenced by a VAT
    O.R or VAT Invoice
    1. TRANSITIONAL
    INPUT VAT
    (12% OF SELLING TYPES OF
    PRICE)
    INPUT VAT
    • Actual VAT paid in (12 %)
    Beginning Inventory
    or
    • 2% of Vatable B.I
    (whichever is higher)
    Input VAT XXX
    B.I XXX
    2. Regular Input
    VAT (12%) TYPES OF
    • Goods INPUT VAT
    – month of purchase
    (12 %)
    • Service
    – month paid

    • Depreciable Capital
    Goods
    – month purchased
    or amortized
    3. Amortization or
    Deferred Input VAT TYPES OF
    Goods purchased on or INPUT VAT
    after Jan. 1, 2022 shall be
    fully recognized outright (12 %)
    and may be claimed as
    input tax credits against
    output tax.
    4. Presumptive
    Input VAT

    4% of agricultural TYPES OF
    purchases or
    manufacturers of: INPUT VAT
    “SAMAMICOPARE”
    • Sardines
    • Mackerel
    • Milk
    • Cooking Oil
    • Packed Noodles
    • Refined Sugar
    5. Input VAT
    Carry-over
    TYPES OF
    Excess input tax ensues
    when the value-added
    INPUT VAT
    taxes paid or incurred on
    inputs exceed the
    (12 %)
    value-added tax liability
    dues on outputs. In such
    cases, the law allows the
    unutilized tax to be carried
    over and credited against
    the taxes due in the
    succeeding periods.
    Tax
    Credit
    1. Advanced Vat
    (Estimated VAT)
    • Flour Sources of
    • Refined Sugar
    • Timber Tax Credit
    2. 5% Creditable
    Withholding VAT
    (Government, GOCC)

    3. VAT paid in
    Month 1 and Month 2

    4. Others
    Do you have any
    questions?

    Thank
    You
    Prepared by
    GROUP 3
    Kriztel Loriene Tribiana
    Hardly Dare Gonzales
    Jay Vaune Vasquez

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