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27 Cards in this Set
- Front
- Back
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Note combinations of VAT and excise |
Excise + VAT = YES Excise + % = YES VAT + % = NO |
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Persons Liable for VAT |
1. Person in course of T& B a. Sells, barters, exchnages goods /prop (seller) b. Renders services (service provider) 2. Imports goods (WON course of T&B) |
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Cross Border Principle |
VAT is taxed only in the country where it is consumed AND none for goods consumed otuside the territorial border |
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In the course of T&B (Rule of Regularity) |
-Regular conduct / pursuit of a commercial activity including transactions incidental thereto -regardless of WON stock / non-stock |
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Exceptions to Rule of Regularity |
1. Importtion (even for personal) 2. Services rendered by non-resident foreign persons even if not regular 3. Business where gross sales / receipt not > P100K in 12 month period |
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Threshold for gross sales or receipts for VAT |
P1,919,500 |
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A person who is required to register but fails to do so |
NOT entitled to claim any input tax credit |
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Sources of Input Tax |
1. Passed on VAT - 12 2. Transactions Deemed Sale - 12 3. Presumptive Input Tax - 4 4. Transitional INput Tax - 2 / Actual 5. Standard Input Tax - 7 6. Witholding INput Tax 7. Excess Input Tax |
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Sources of Output Tax |
1. Actual Sales 2. Zero-rated Sales 3. Deemed Sales |
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Aggregation Rule |
Revenue from profession and other trade / businesses subject to vat shall be aggregated |
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Goods or properties |
all tangible and intangible objects capable of pecuniary estimation |
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Requisites to be VATABLE |
1. Actual / deemed sale, barter, exchange, lease of goods or properties, or rendering services in PH 2. Ordinary course of trade / business 3. Goods located and cnsumed in PH 4. Not VAT exempt or zero-rated |
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Tax Base for Goods |
12% of Gross Selling Price or Gross Value in Money - excise tax shall from part of GSP |
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Allowable Deductions |
1. Sales discounts 2. Sales returns and allowances |
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VAT on sale of real properties |
WODENT 1. Within PH 2. Ordinary asset - held primarily for sale / lease in T&B 3. Real estate dealer 4. Executes a deed of sale including dacion, barter, etc. 5. Not VAT exempt 6. Threshold amount is met GSP: FMV / Consideration |
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Threshold Amount - Residential Lot |
1,919,500 |
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TA = Residential House and Lot |
3,199,200 |
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Rental of Residential |
12,800 |
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Sales of goods and sercices |
1,919,500 |
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Low cost housing - TA |
750,000 but as long as meets 3, 199, 200 amount still fine |
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Transactions Deemed Sale |
TDCR 1. Transfer / use not in course of business of property originially intended for sale / use in the business 2. DIstribution to a. shareholders or share in the profit of VAT-registered person b. Creditors in paymet of debt / obligation 3. Consignment and sale not made within 60D 4. Retirement / cessation from business re goods at hand (change of ownership / dissolution of partnership) |
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Tax Base |
12% at time of transaction XPN: Retirement / cessation = acquisition cost / current market price whichever is lower |
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VAT on importation of goods |
1. Total value used by BOC for tariff/custom duties 2. Landed cost - based on value and quantity |
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Sale of services / lease |
1. Sale / exchange or sercices 2. Service performed / to be in the PH 3. Leased property in PH 3. In the course of T&B 4. Service is for valuable consideration 5. Not exempt under Tax Code |
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For lease |
VATABLE when pre-paid rental |
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Lawyer subject to VAT if |
1. No ER- EE relationship 2.Gros receipts not >P1,919,500 |
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Seller not VAT_registered person |
His export sales will be considered VAT exempt lang |
