c


› It is nothing but Sales Tax.

› It is a multi-point sales tax.
› It is collected on value addition only at each stage.
› Tax paid by the dealer is deducted from the tax payable collected at every point of sale and
the tax already paid.



  
 is included in the price of most goods and services. Foreign visitors
are not excempt for paying VAT on purchased goods. They may, however, claim back VAT paid
on items taken out of the country when the total valued exceeds R250. The refund may be
claimed at the airport of departure, at various harbors and at customs offices.

c

 

E-VAT (or EVAT) stands for expanded value added tax that is specific to the Philippines. It is
also called the value added tax reform act and RVAT or the reformed value added tax. The E-
VAT is imposed in the Philippines. It expands the coverage of the value added tax, which is a
type of indirect sales tax levied on goods and services at each production and distribution step.
It also increases the rate of corporate income tax and aims to reduce tax on particular petroleum
products.

E-VAT extends to services provides by rental car companies, tourist buses, taxis, resorts,
hotels, clubs and restaurants; imported meat and pest control products; trucking, shipping and
airfreight; telegram, television, radio and telephone franchise; use of satellite transmission, films
and cable television; feeds for aquarium fish, fighting cocks and race horses; property rights;
non-life insurance and professional fees.




c 

A 
 
 
 () is a form of consumption tax. From the perspective of the buyer, it is
a tax on the purchase price. From that of the seller, it is a tax only on the "value added" to a
product, material or service, from an accounting view, by his stage of its manufacture or
distribution. The buyer remits to the government the difference between these two amounts, and
retains the rest for themselves to offset the taxes he had previously paid on the inputs.

The "value added" to a product by a business is the sale price charged to its customer, minus
the cost of materials and other taxable inputs. A VAT is like a sales tax in that ultimately only the
end consumer is taxed.[{

ΠIt differs from the sales tax in that, with the latter, the tax is
collected and remitted to the government only once, at the point of purchase by the end
consumer. With the VAT, collections, remittances to the government, and credits for taxes
already paid occur each time a business in the supply chain purchases products from another
business.

c
 

The extended value-added tax law is one of the most recent instruments of fiscal reform in
the Philippines. Also known as RA 9337, the EVAT law was passed on May 11, 2005 by the
Senate. This newly law implemented taxation on commodities that in the past were tax-exempt,
such as petroleum, electricity and services to name a few. Aside from this, the law also
increased sin taxes, or taxes on alcoholic beverages and cigarettes. In February 2006, the
extended value added tax was increased from 10% to 12%. In addition, corporate tax also
moved from 32% to 35%. Through this new law, the government was able to obtain additional
revenues of PHP 81.4 B in 2006. We are all aware that the EVAT law was famously advocated
by Senator Ralph Recto, as he served as the spokesperson in the Senate.
The law was formally passed on the 11th of May 2005, and since then has been scrutinized
by the public. This law was actually designed by international creditors so that the country can
pay its international loans. Despite the positive turnout of the law, however, Senator Ralph
Recto lost in the elections. Some people have saying that his name was associated with higher
taxes, thus the people not so keen on voting for him.