Beruflich Dokumente
Kultur Dokumente
TAXES
Texts in MAROON are the amendments according to TRAIN
Consumption
Exempt
Exempt sales
importation
BUSINESS TAX
Consumption
R VAT on VAT on
Subject: Domestic Consumption buyer sale importation
Consumption
Services by agricultural contract growers and milling for others of palay into
rice, corn into grits, and sugar cane into raw sugar
o Milling services – processing of agricultural produce for ultimate human
consumption
Hospital services
Except:
o medical professional services, &
o sales of drugs by hospital drugstores/pharmacy
Education
Employment
A. Sale
1. Non-dealer
2. Dealer – subject to price ceilings
o Utilized for social housing units:
a.House & lot package – P450,000,
b.Residential lots only – P180,000
Real properties
Every 3 years, the threshold amount shall be adjusted to its present value
• using the Consumer Price Index,
• as published by the National Statistics Office-NSO (now, Philippine
Statistics Authority-PSA).
Real properties
o By International carriers
o Originating from Philippines going abroad
o Does not include receipt from outgoing cargoes, excess baggage, or
mails - subject to percentage tax on international carriers
Cooperatives with Certificate of Good Standing issued by CDA
o Sale of drugs and medicines prescribed for diabetes, high cholesterol, and
hypertension beginning Jan. 1, 2019
VAT TAXPAYERS
VAT
2.Threshold Amount
VAT registrable Coveredbut
– Exceed VAT threshold taxpayers
did not registered
General Threshold P 1,919,500 All except franchise grantees of
(3,000,000) radio or television
Remember:
BRANCH - sales aggregated with head office
SUBSIDIARIES or SPOUSE (for married)– not aggregated
VAT EXEMPT TRANSACTIONS
NO Output VAT
NO Creditable Input VAT
Input VAT – expensed
TYPES:
Sale of Properties
Type Taxability
By a dealer, developer, or lessor of REAL properties vatable
Properties considered ORDINARY ASSETS vatable
Properties NOT in the course of business exempt
Consideration per
sales document
Gross Selling Price higher zonal Value, and
higher
Fair value of Assessed value
property -exclusive of VAT
1.) 12% REGULAR OUTPUT VAT
• means initial payment in the year of sale does not exceed 25% of
selling price.
C.
• Sale of raw materials or packaging material to an export-oriented
enterprise
Requisites to be export-oriented:
• Export sales exceed 70% of total annual production of the preceding
taxable year
• Certification is issued by pertinent government agency
2.) ZERO RATED SALES
Items (B), (C), and (E) shall be subject to the twelve percent (12%) VAT
and no longer be subject to zero percent (0%) VAT rate upon satisfaction
of the following conditions:
2. All pending VAT refund claims as of December 31, 2017 shall be fully
paid in cash by December 31, 2019.
2.) ZERO RATED SALES
Provided, that the goods, supplies, equipment, fuel and services shall be
used exclusively for international shipping or air transport.
2.) ZERO RATED SALES
B. Exclusive of VAT
Selling price x 12%
1. Separately billed
2. Client or customer absorbs the VAT
CREDITABLE INPUT VAT
Requisites:
1. Input VAT must have been paid or incurred in the course of trade
or business
2. Input VAT is evidenced by a VAT invoice or VAT official receipt.
3. VAT Invoice or receipt must be issued by a VAT-registered
person.
4. Input VAT is incurred in relation to vatable sales and not from
exempt sales.
1. Sales to government
2. Export Sales
3. Regular Sales
CREDITABLE INPUT VAT
Who?
2. Construction in progress
- Creditable upon payment of each progress billings of the contractor
- Neither credited upon completion nor amortized
Additional provision:
Beginning January 1, 2021, the VAT withholding system shall shift from
final to a creditable system.
Purchase xx
Actual Input VAT xx
AP / Cash xx
Cash/AR xx
Final VAT withheld(5%) xx
Sales xx
Output VAT xx
Output VAT xx
Income & Expense summary (loss) xx
Final VAT withheld xx
Actual input VAT xx
Income & Expense summary (gain) xx
6. INPUT VAT CARRY-OVER
Output VAT xx
Less: Input VAT xx
VAT Payable (xx)
Rules:
1. Prior quarter – deductible in the first month of the current quarter
2. First month of the quarter – deductible in the 2nd month of the
quarter
3. Second moth of the quarter – not deductible to the 3rd month of the
quarter
4. Prior quarter – deductible in the quarterly balance of the current
quarter
6. INPUT VAT CARRY-OVER
Excluded:
1. Advanced VAT w/c have been applied for a tax credit certificate
(TCC)
2. Input VAT attributable to zero-rated claim w/c have been applied for
a refund or TCC
3. Input VAT from zero-rated sales that expired after the 2-year
prescriptive period
CLAIMING OF CREDITABLE INPUT VAT (zero-rated sales)
YES Claim? NO
Additional provision:
Should the Commissioner find that the grant of refund is not proper, the
Commissioner must sate in writing the legal and factual basis for denial.
Failure of the Commissioner to act on the application within the period prescribed
is deemed a denial of the application (deleted)
Failure on the part of any official, agent, or employee of the BIR to act on the
application w/in 90 days shall be punishable under Section 269 of the Tax
Code (administrative fine and imprisonment).
RULES ON CLAIM OF INPUT TAX CREDIT
Output VAT xx
Less: Creditable Input VAT xx
Net VAT Payable xx
Less: Tax Credits or Payments xx
Tax Still Payable / (Overpayment) xx
JOURNALIZING
Purchase of goods
Inventory/Purchases xx
Input VAT xx
Accounts Payable/Cash xx
Sales of goods
During the month, XYZ Corp. purchased goods invoiced at P350,000 excluding
P42,000 input tax. It exported the goods for $12,00 which is equivalent to P510,000
and incurred P10,000 in expense.
Presumption of Vatability
Technical Importation
BICAP FLOW
* Does not apply to income or revenue realized by BSP undertaken in pursuit of its legally
mandated functions (Sec.5, RR 8-2008)
TAX RATES ON SERVICES SPECIFICALLY SUBJECT TO PERCENTAGE TAXES
For substantiating correct output VAT and claim for refund or TCC for zero-rated
sales.
ACCOUNTING REQUIREMENTS
a. His gross sales or receipts for the past twelve (12) months, other than
those that are exempt under Section 109 (A) to (U), have exceeded the
threshold: or
Failure to Pay the Annual Registration Fee of P500 (BIR Form 0605) & Display
the Registration Certificate:
a. Criminal Penalty Imposed - Fine of not more than 1,000 or imprisonment of
not more than 6 months (Sec. 275, NIRC)
b. Amount of compromise P1,000
1. Pay the annual registration fee of P500.00 for every place of business or
establishment that generates sales not later than Jan. 31;
(If there are other transactions not subject to VAT, a separate set of
non-VAT invoices or non-VAT official receipts need to be registered for
use on transactions not subject to VAT);
4. Filing of the monthly and quarterly VAT declaration using BIR Forms
within the prescribed due dates.
5. Submit with the RDO/LTDO having jurisdiction over the taxpayer, w/in the
deadline set, the soft copy of the:
a. Quarterly Schedule of Monthly Sales and Output Tax (if the quarterly
sales > P2,500,000.00), and
o Deadline: on or before the 25th day of the month following the close of the
taxable quarter -- calendar quarter or fiscal quarter
1. If he makes a written application and can demonstrate to the
commissioner's satisfaction that his gross sales or receipts for the following
twelve (12) months, other than those that are exempt under Section 109 (A)
to (U), will not exceed the threshold; or
2. If he has ceased to carry on his trade or business, and does not expect to
recommence any trade or business within the next twelve (12) months.
Effectivity: from the first day of the following month the cancellation was
approved
Any person who elects to register under optional registration shall not be
allowed to cancel his registration for the next three (3) years
Except: Franchise grantees of radio & TV– noncancellable until
dissolution
• Any person or entity who, in the course of his trade or
business, sells, barters, exchanges, leases goods or properties
and renders services subject to VAT, if the aggregate amount of
actual gross sales or receipts exceed VAT threshold
through electronic filing facility for taxpayers under the jurisdiction of the Large
Taxpayers Service (LTS) and those enrolled under the eFPS
1. A surcharge of 25% for:
a. Failure to file any return and pay the amount of tax or installment due on or before the
due date;
b. Unless otherwise authorized by the Commissioner, filing a return with a person or office
other than those with whom it is required to be filed;
c. Failure to pay the full or part of the amount of tax shown on the return, or the full
amount of tax due for which no return is required to be filed on or before the due date;
d. Failure to pay the deficiency tax within the time prescribed for its payment in the notice
of assessment.
2. A surcharge of 50%of the tax or of the deficiency tax, in case any payment has been
made on the basis of such return before the discovery of the falsity or fraud, for:
a. Willful neglect to file the return within the period prescribed by the Code or by rules and
regulations; or
b. In case a false or fraudulent return is willfully made.
3. Unpaid tax - Interest at the rate of 20% per annum, or such higher rate as may be
prescribed by rules and regulations, from the date prescribed for the payment until the
amount is fully paid.
4. Compromise penalty.
– remitted monthly on or before the 10th day the following month after the withholding was made
EXCEPT for taxes withheld for December – filed or paid on or before Jan. 25 next year
- Same procedure with the VAT returns
Attachments Required
1. Alphabetical list of payees using the format prescribed in page 3 (if the same cannot be
accommodated in the return);
2. Authorization letter, if return is filed by the authorized representative;
3. Certificate of Tax Treaty Relief, if applicable;
4. Proof of payment and the return previously filed, for amended return
NOTE: A taxpayer may file a separate return for the head office and for each branch or place
of business/office or a consolidated return for the head office and all the
branches/offices,
EXCEPT large taxpayers where only one consolidated return is required.
VAT: Deadline
Through eFPS:
4. For amended return, proof of payment and the return previously filed
Documentary Requirements
Note: Aside from 2552 - required to submit a true and complete return to the Secretary of
the Stock Exchange of which he is a member, containing:
• a declaration of all transactions effected through him during the preceding week and
• of taxes collected by him and turned over to the BIR.
BIR Form 2552 - Percentage Tax Return for Transactions Involving Shares
of Stocks Listed and Traded Through The Local Stock Exchange or
Through Initial and/or Secondary Public Offering
BIR FORM No. 1600 WP – Remittance Return of % Tax on Winnings &
Prizes Withheld by Race Track Operators
PERCENTAGE TAX: Deadline
Through eFPS:
upon filing
2551M Group A - 25 days following the end of
month
Group B - 24 days following the e.o.m.
Group C - 23 days following the e.o.m.
Group D - 22 days following the e.o.m.
Group E - 21 days following the e.o.m.
Within 25 days after the end of each Percentage tax is now filed & paid
2551Q
taxable quarter quarterly.
PERCENTAGE TAX: Deadline
Trocio, Elaine