Problems 9 & 10

Section G: Input Taxes, Withholding VAT and other requirements

Caraig, Dela Cruz, Tan
 Timing for claiming
Problem 9 for VAT refunds
PROBLEM 9
TIMING FOR CLAIMING VAT REFUNDS

Humaling Corporation is an export oriented enterprise, which exports 100% of

its production. It had the following excess input tax credits as of September 30,
20A1, its fiscal year end:
First Quarter P5,200,000

Second Quarter 8,000,000

Third Quarter 12,200,000

Fourth Quarter 15,800,000

Its first quarter excess input tax credits include input tax carryover as of the
quarter ended September 30, 20A0 amounting to P3,700,000.
1. Determine the refundable excess input tax credits for each of the four quarters
for the year ended September 30, 20A1.
2. Determine the last day that Humaling can submit its claim for tax refund with
the BIR for each of the four quarters for the year ended September 30, 20A1.
Quarter 1 Quarter 2 Quarter 3 Quarter 4

Input Tax Credit 5,200,000 8,000,000 12,200,000 15,800,000

Carryover (3,700,000) (5,200,000) (8,000,000) (12,200,000)

(1)Refundable Excess 1,500,000 2,800,000 4,200,000 3,600,000

(2)Last day to submit Dec. 31, 20A2 March 31, 20A3 June 30, 20A3 Sept. 30, 20A3
3. Assume that Humaling submitted its claim for tax refund for all the four
quarters for the year ended September 30, 20A1 on December 15, 20A2.
Determine the last day that the BIR should act on the claim for refund of
Humaling.

90 DAYS

DEC.15, 20A2 MAR. 15, 20A3

REVENUE MEMORANDUM CIRCULAR 102-2018

BIR extended the deadline for processing claims for tax

refund by 90 days by VAT refund filed starting January 1, 2018.
4. Assume that Humaling submitted its claim for tax refund for all the four quarters for
the year ended September 30, 20A1 on December 15, 20A2. Determine Humaling’s
remedy under the following situations and when should Humaling elevate its claim
with the COURT OF TAX APPEALS (CTA), if applicable:

a. There was no action on the part of BIR to refund

or deny the claim.
○ Wait for BIR’s decision
b. The BIR denied the claim on March 1, 20A3.
○ (30 days); March 31, 20A3
c. The BIR granted the claim for refund for only
P10,000,000 on March 12, 20A3
○ (30 days); April 11, 20A3
 Withholding VAT;
Problem 10 Sales to government
PROBLEM 10
WITHHOLDING VAT; SALES TO GOVERNMENT
Magaling Corporation sells goods and services to the government. It does not have
other sales transactions. The following information relates to its sales transactions
for the quarters ended March 31, 20A1 and June 30, 20A1, VAT exclusive, if
applicable:
1. Determine the final withholding VAT for the quarters ended March
31, 20A1 and June 30 20A1.
March 31, 20A1 June 30, 20A1

Sales:

Goods P 1,000,000 P 1,250,000

Services:

AR, beginning P 200,000 P 300,000

Service Income 700,000 850,000

AR, end (250,000) 650,000 (280,000) 870,000

Tax Base P 1,650,000 P 2,120,000

Tax Rate 5% 5%

Final Withholding VAT P 82,500 P 106,000

2. Determine the output tax, input tax, standard input tax and VAT payable that
will be reported in the VAT returns for the quarters ended March 31, 20A1 and
June 30 20A1.

OUTPUT TAX:

March 31, 20A1 June 30, 20A1

Tax Base P 1,650,000 P 2,120,000

Tax Rate 12% 12%

Output Tax P 198,000 P 254,400

2. Determine the output tax, input tax, standard input tax and VAT payable that
will be reported in the VAT returns for the quarters ended March 31, 20A1 and
June 30 20A1.

INPUT TAX:

March 31, 20A1 June 30, 20A1

Goods P 50,000 P 60,000

Services 40,000 45,000

Importation 30,000 20,000

Input Tax P 120,000 P 125,000

2. Determine the output tax, input tax, standard input tax and VAT payable that
will be reported in the VAT returns for the quarters ended March 31, 20A1 and
June 30 20A1.

STANDARD INPUT TAX:

March 31, 20A1 June 30, 20A1

Tax Base P 1,650,000 P 2,120,000

Tax Rate 7% 7%

Standard Input Tax P 115,500 P 148,400

2. Determine the output tax, input tax, standard input tax and VAT payable that
will be reported in the VAT returns for the quarters ended March 31, 20A1 and
June 30 20A1.

VAT PAYABLE:

March 31, 20A1 June 30, 20A1

Output Tax 198,000 P 254,400

Standard Input Tax (115,500) (148,400)

VAT Payable P 82,500 P 106,000

2. Determine the output tax, input tax, standard input tax and VAT payable that
will be reported in the VAT returns for the quarters ended March 31, 20A1 and
June 30 20A1.

VAT STILL DUE

March 31, 20A1 June 30, 20A1

VAT Payable P 82,500 P 106,000

Final VAT (82,500) (106,000)

VAT still due - -

3. Assume that the transactions transpired in 2021, determine the output tax,
input tax, VAT payable and VAT still due for the quarters ended March 31,
20A1 and June 30, 20A1.

OUTPUT TAX:

March 31, 20A1 June 30, 20A1

Tax Base P 1,650,000 P 2,120,000

Tax Rate 12% 12%

Output Tax P 198,000 P 254,400

3. Assume that the transactions transpired in 2021, determine the output tax,
input tax, VAT payable and VAT still due for the quarters ended March 31,
20A1 and June 30, 20A1.

INPUT TAX:

March 31, 20A1 June 30, 20A1

Goods P 50,000 P 60,000

Services 40,000 45,000

Importation 30,000 20,000

Input Tax P 120,000 P 125,000

3. Assume that the transactions transpired in 2021, determine the output tax,
input tax, VAT payable and VAT still due for the quarters ended March 31,
20A1 and June 30, 20A1.
VAT PAYABLE AND VAT
STILL DUE: March 31, 20A1 June 30, 20A1

Output Tax P 198,000 P 254,400

Input Tax (120,000) (125,000)

Carryover - (4,500)

VAT Payable P 78,000 P 124,900

Creditable VAT (5%) (82,500) (106,000)

VAT still due P (4,500) P 18,900