Upload
kara-clark
View
227
Download
0
Embed Size (px)
Citation preview
7/28/2019 Taxation 08 - Value Added Tax
http://slidepdf.com/reader/full/taxation-08-value-added-tax 1/13
7/28/2019 Taxation 08 - Value Added Tax
http://slidepdf.com/reader/full/taxation-08-value-added-tax 2/13
VAT defined
• It is a tax on the value added to the purchase
price or cost in the sale or lease of goods,
properties, or services in the course of trade
or business.
2
7/28/2019 Taxation 08 - Value Added Tax
http://slidepdf.com/reader/full/taxation-08-value-added-tax 3/13
Transactions subject to VAT
• In the course of
trade/business
– Sells
– barters
– Exchanges
– Leases goods or properties
(including deemed sales)
– Renders services
• Whether or not it thecourse of trade or business
– Imports goods
provided the
aggregate
sales/receiptsexceeds
P1,919,500
3
7/28/2019 Taxation 08 - Value Added Tax
http://slidepdf.com/reader/full/taxation-08-value-added-tax 4/13
EXEMPT TRANSACTIONS
a) Sale of non-food agricultural products, marine and forest products intheir original state by the primary producer or the owner of the land
where the same are produced.
b) Sale of cotton and cotton seeds in their original state; and copra;
c) Sale or importation of agricultural and marine food products in their
original state, livestock and poultry of a kind generally used as, or
yielding or producing foods for human consumption; and breeding
stock and genetic materials thereof;
d) Sale or importation of fertilizers; seeds, seedlings and fingerlings;
fish, prawn, livestock and poultry feeds, including ingredients, whether
locally produced or imported, use in the manufacture of finished feeds
(except specialty feeds for race horses, fighting cocks, aquarium fish,
zoo animals and other animals generally considered as pets)
7/28/2019 Taxation 08 - Value Added Tax
http://slidepdf.com/reader/full/taxation-08-value-added-tax 5/13
EXEMPT TRANSACTIONS
e) Sale or importation of coal and natural gas, in whatever form or
state.
f) Importation of passenger and/or cargo vessels of more than five
(5,000) tons;
g) Importation of personal and household effects belonging to the
residents of the Philippines returning from abroad and nonresident
citizens coming to resettle in the Philippines;
h) Importation of professional instruments and implements, wearing
apparel, domestic animals and personal household effects (except anyvehicle, vessel, aircraft, machinery, other goods for use in the
manufacture and merchandise of any kind in commercial quantity)
belonging to person coming to settle in the Philippines.
7/28/2019 Taxation 08 - Value Added Tax
http://slidepdf.com/reader/full/taxation-08-value-added-tax 6/13
EXEMPT TRANSACTIONS
i) Services subject to percentage tax; j) Services rendered by individuals pursuant to employer-employee
relationship;
k) Transactions which are exempt under international agreement;
l) Sales by agricultural cooperatives duly registered with the CDA;
m) Sales by electric cooperatives duly registered by the CDA;n) Gross receipts from lending activities by credit and multi-purpose
cooperative duly registered with the CDA
o) Sales by non-agricultural, non-electric and non-credig cooperatives
duly registered with the CDA;
p) Export sales by persons who are not VAT-Registeredq) Sale of real properties not primarily held for sale in the ordinary
course of business;
r) Lease of a residential unit with a monthly rental not exceeding
P8,000.
7/28/2019 Taxation 08 - Value Added Tax
http://slidepdf.com/reader/full/taxation-08-value-added-tax 7/13
VAT Payable
Output Tax ( Sales x 12%) - P x x x
Less Input Tax (Purchases x 12%) - x x xVAT payable - P x x x
7
7/28/2019 Taxation 08 - Value Added Tax
http://slidepdf.com/reader/full/taxation-08-value-added-tax 8/13
7/28/2019 Taxation 08 - Value Added Tax
http://slidepdf.com/reader/full/taxation-08-value-added-tax 9/13
Gross Receipts
• Contract price, compensation, service fee,
rental or royalty
• Including the amount charged for
materials supplied with the services• Deposits applied as payments for services
rendered
• Advance payment actually or
constructively received• Excluding the VAT
9
7/28/2019 Taxation 08 - Value Added Tax
http://slidepdf.com/reader/full/taxation-08-value-added-tax 10/13
Invoicing Requirement
7/28/2019 Taxation 08 - Value Added Tax
http://slidepdf.com/reader/full/taxation-08-value-added-tax 11/13
INPUT TAX
• Is the value added tax due from or paid by a
VAT-registered person in the course of his
trade or business.
– Any input tax evidenced by a VAT invoice or official
receipt shall be creditable against the output tax.
11
7/28/2019 Taxation 08 - Value Added Tax
http://slidepdf.com/reader/full/taxation-08-value-added-tax 12/13
Sources Input Tax
• Purchase or importation of goods
– For sale
– For conversion into or intended to form part of a finished
product for sale including packaging materials – For use as supplies in the course of business
– For use as materials supplied in the sale of service
– For use in trade or business for which deduction for
depreciation / amortization is allowed under the Tax Code
12
7/28/2019 Taxation 08 - Value Added Tax
http://slidepdf.com/reader/full/taxation-08-value-added-tax 13/13
Sources of Input Tax (cont…)
• Purchase of real properties for which the VAT
was actually paid
• Purchase of services for which the VAT was
actually paid
• Transitional input tax
•
Presumptive Input tax• Standard Input Tax (gov’t. transaction)
13