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Module 3 - Value Added Tax

This document provides an overview of Value Added Tax (VAT) in the Philippines. It defines VAT as a tax on consumption levied on the sale of goods, properties, services, and importation of goods. The key points covered include: - Persons liable for VAT include sellers of goods/properties, services, and importers. - VAT is calculated on the value added at each stage of production and distribution. - Transactions can be subject to 12%, 0%, exempt from VAT, or subject to withholding VAT. - Taxpayers must register for VAT if their gross sales exceed 3 million PHP over 12 months.

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Allan C. Marquez
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0% found this document useful (0 votes)
308 views

Module 3 - Value Added Tax

This document provides an overview of Value Added Tax (VAT) in the Philippines. It defines VAT as a tax on consumption levied on the sale of goods, properties, services, and importation of goods. The key points covered include: - Persons liable for VAT include sellers of goods/properties, services, and importers. - VAT is calculated on the value added at each stage of production and distribution. - Transactions can be subject to 12%, 0%, exempt from VAT, or subject to withholding VAT. - Taxpayers must register for VAT if their gross sales exceed 3 million PHP over 12 months.

Uploaded by

Allan C. Marquez
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
You are on page 1/ 113

Business Taxes:

Value
Added Tax
Allan Marquez, CPA
Lecturer
Learning Objectives

 Describes the principles, nature and concepts of business tax


 Describes the principles, nature and concepts of Value Added Tax (VAT)
 Distinguish the persons liable to VAT
 Understand basis of Output VAT
 Identify and familiarize transactions subject to 12% VAT
 Identify and familiarize transactions subject to 0% and withholding VAT
 Identify and familiarize transactions that are VAT exempt
 Understand and familiarize sources of Input VAT
 Compute Output VAT payable or Input VAT excess
 Prepare and file tax return
 Familiarize of the compliance requirements
BUSINESS TAX

 Business tax is a tax imposed upon the privilege of engaging in business, pursuing a
calling or a profession.
 It is the tax imposed on the ONEROUS TRANSFER of product, property, or service
such as sale, barter, exchange, and importation.
 Business activity in general is subject to business tax.
BUSINESS

 The term “BUSINESS” as used in the tax code means business in the trade or commercial sense only.
It is therefore, to be construed in the plain and ordinary meaning being restricted to activities or
affairs where profit is the purpose, or livelihood is the motive.
 “In the ordinary course of trade or business” means the regular conduct or pursuit of a commercial
or an economic activity, including activities incidental thereto, by any person, regardless of whether
or not the person engaged therein is a non-stock, non-profit private organization or government
entity (Section 105 of NIRC)
 Isolated transactions are generally not considered with ordinary course of trade or business; hence,
not subject to business tax. However, as provided by under RR 16-2005, services rendered in the
Philippines by a NONRESIDENT-ALIEN (either individual or corporation), shall be considered as being
rendered in the course of trade or business even if the performance is not regular.
BUSINESS

 General Rule
 It should be used in the commercial or economic activity
 There should be regularity in the activity.
 Exemption
 Marginal Income Earners (RR 7-2012)
“Defined as individuals whose business do not realize a gross sales or receipts NOT exceeding
P100,000 in a twelve month period. This is considered business for subsistence or livelihood.”
 Sales or services of non-resident alien or nonresident foreign corporation is considered in
engage in business.
TYPES OF BUSINESS TAX

 VALUE ADDED TAX (VAT)


It is a tax on consumption levied on the following:
o Sale of properties or goods in the ordinary course of business
o Sales of services In the ordinary course of business
o Importation of goods or properties whether in the course business or not.
 Percentage Tax (PT)
o Any person who is not subject to VAT and is not exempt from business tax, shall be subject to percentage tax
(PT)
o Those under Section 116 to 127 of NIRC.
 Excise Tax
o Excise taxes apply to goods manufactured or produced in the Philippines for domestic sales or consumption
or for any other disposition, and goods imported.
o The goods manufactured or imported under this category are classified as either “sin products” or “non-
essential goods”.
TYPES OF BUSINESS TAX

  Business Tax
VAT OPT Excise Tax
Sale of Goods or Service
In general Yes - -
Exempt from VAT - Yes -
Exempt for Business Tax - - -
Sales of Sin Products and Non-essential goods
In general Yes - Yes
Exempt from VAT - Yes Yes
VALUE ADDED TAX (VAT)

 Value-added-tax is a tax on consumption levied on the sale, barter, exchange or lease of goods or
properties and services in the Philippines and on importation of goods into the Philippines.
 It is a tax on the value added by every seller to the purchase price or cost in the sale or lease of
goods, property or services in the ordinary course of trade or business as well as on importation of
goods into the Philippines, whether for personal or business use.
 The seller is the one statutorily liable for the payment of the tax, but the amount of the tax may be
shifted or passed on to the buyer. However, in case of importation, the importer is the one liable for
the VAT.
NATURE OF VALUE ADDED TAX (VAT)

 Privilege Tax
 Levied upon the right to engage in business (still chargeable even if the business is incurring
losses
 It is an indirect tax
 Liable to VAT is the seller but the burden of paying the tax is shifted or to be borne by the final
consumer. 
 It is consumption based
 It is the end user of consumer goods or services which ultimately shoulders the tax as a liability
therefrom is passed on to the end users by the providers of these goods or services. The VAT,
thus, forms a substantial portion of consumer expenditures.
NATURE OF VALUE ADDED TAX (VAT)

 It is imposed on the value added on each stage of production and distribution process
 VAT is a tax on the value added by every seller to the purchase price or cost in the sale or lease of
goods, property, or services in the ordinary course of trade or business as well as on importation
of goods into the Philippines, whether for personal or business use.
 It is collected through the “tax credit method” or “invoice method
 VAT payable is computed by deducting the input from the output VAT.
PERSONS LIABLE TO VAT

 Seller of Goods and/or Properties in the Ordinary Course of Business


 Seller of Services and/or lessor of properties in the Ordinary Course of Business
 Importer whether or not made in the course of his trade or business.
KINDS OF VAT

 VAT on Sale of Goods or Properties


“Goods or properties” is defined as all tangible and intangible objects which are capable of
pecuniary estimation and shall include, among others:
o Real properties held primarily for sale to customers or held for lease in the ordinary course or
trade of business
o The right or the privilege to use patent, copyright, design or model, plan, secret formula or
process, goodwill, trademark, trade brand or other like property or right.
o The right or the privilege to use motion picture films, films, tapes, and discs.
o Radio, television, satellite transmission and cable television time.
KINDS OF VAT

 VAT on Sale of Services and Use or lease of Properties


 Sale of services means performance of all kinds of services in the Philippines for others for fee,
remuneration or consideration, whether in kind or cash. VAT on sale of service is a tax on
payments of services rendered in the exercise of profession or calling.
 Sale of real properties shall refer to real properties held primarily for sale to customers or held
for lease in the ordinary course of trade or business of the seller.

 VAT on Importation of Goods


 Importation of goods refers to bringing goods into the Philippines, whether or not made in the
course of trade or business.
VAT REGISTRATION

• Mandatory Registration
• Optional Registration
VAT REGISTRATION

Mandatory Registration
 Any person or entity who, in the course of his trade or business, sell, barters, exchanges, leases goods or
properties and renders services subject to VAT, if the aggregate amount of actual gross sales or receipt exceed
P3,000,000 beginning January 1, 2018 (previously P1,919,500) for the past 12 months (other than those that
are exempt) or there are reasons to believe that the gross sales or receipt for the next 12 months will exceed
P3,000,000.
 Radio and/or television broadcasting companies whose annual gross receipts of the preceding year exceeds
P10,000,000. Mandatory registration applied within 30 days from the end of the taxable year when gross
receipts exceed P10,000,000
 A person required to register as VAT taxpayer but failed to register.

Penalty for non-registration of those required to register:


The taxpayer shall be liable to pay the tax as if he were a VAT registered person, but he cannot avail the benefits
of input tax credit for the period he was not properly registers.
VAT REGISTRATION

Optional Registration
 Any person who is VAT-exempt or not required to register for VAT may elect to be VAT registered
by registering with the RDO that has jurisdiction over the head office of that person, and pay the
annual registration fee for every separate and distinct establishment. Any person who elects to
register under optional registration shall bot be allowed to cancel his registration for the next 3
years.
 Any person who is VAT-registered but enters into transactions which are exempt from VAT (mixed
transactions) may opt that the VAT apply to his transactions which would have been exempt.
 Franchise grantees of radio and/or television broadcasting whose annual gross receipts of the
preceding year do not exceed P10,000,000 derived from the business covered by the law
granting the franchise may opt for VAT registration. This option, once exercised, shall be
irrevocable. The taxpayer should apply for VAT registration not later than 10 days before the
beginning of the calendar quarter.
CANCELLATION OF VAT Registration

 If the taxpayer makes a written application and can demonstrate to the commissioner’s satisfaction
that his gross sales or receipts for the following 12 months, other than those exempt from VAT, will
not exceed P3,000,000.
 If taxpayer ceased to carry on his trade or business, and does not expect to recommence any trade
or business within the next 12 months.
POWER OF THE COMMISSIONER TO SUSPEND BUSINESS
OPERATIONS

The Commissioner of the Internal Revenue or his authorized representative may order suspension or
closure of business establishment for a period of not less than 5 days for any of the following violations:
 Failure to issue receipts or invoice
 Failure to file VAT return
 Understatement of taxable sales or receipts by 30% or more of the correct taxable sales or
receipts for the taxable quarter
 Failure of any person to register as required under the law
BASIS OF VALUE ADDED TAX

Nature of Transactions Tax Base


Sales of Goods or Properties Gross selling price
Sales of Services Gross receipts
Importation Total landed cost
Dealers of Securities Gross income
BASIS OF VALUE ADDED TAX

Sale of Goods or Properties


 Gross selling price is the total amount of money or its equivalent which the purchaser pays or is
obligated to pay to the seller in consideration of the sale, barter or exchange of the goods or
properties, excluding VAT. The excise tax, if any, on such goods or properties shall form part of the
gross selling price.
 If the VAT Is not billed separately in the document of sale, the selling price or the consideration
therein shall be deemed to be inclusive of VAT.

Selling Price Formula/Computation of Output VAT


Selling Price, exclusive of VAT Selling Price x 12%
Selling Price, inclusive of VAT Selling Price / 112% x 12%
If not a VAT Registered but required to be VAT registered Total Gross Sales x 12%
BASIS OF VALUE ADDED TAX

Sale of Goods or Properties


 For sale, barter or exchange of real property subject to VAT, gross selling price shall mean the
consideration stated in the sales document or the FMV, whichever is higher. FMV shall mean
whichever is higher of FMV as determined by the Commissioner or the FMV as determined by
Provincial or City Assessors. If the gross selling price is based on FMV, it shall be deemed
exclusive of VAT.
BASIS OF VALUE ADDED TAX

Sale of Goods or Properties


BASIS OF VALUE ADDED TAX

Sale of Goods or Properties

Illustrative Examples:
CORONA Corporation, the leading distributor of face mask in the country, sold 10 boxes of its
products to 7/11 convenience store, The selling price P1,000 per box exclusive of VAT. If CORONA
Corporation is a VAT registered entity, how much is the output VAT.
BASIS OF VALUE ADDED TAX

Sales of Services
• Gross receipts refers to the total amount of money or its equivalent representing the
contract price, compensation, service fee, rental or royalty, including the amount charged for
materials supplied with the services and deposits applied as payments for services rendered
and advance payments actually or constructively received during the taxable period for the
services performed or to be performed for another person, excluding the VAT.
BASIS OF VALUE ADDED TAX

Sales of Services

Illustrative Examples
To ensure the safety of the employee, the company ask the service to have a total disinfection of
the office from SMOKE DISINFECTION Company. SMOKE Disinfection Company is a vat registered
entity and provide an invoice with a total amount of P11,200 stating that it is VAT inclusive.
Compute the output VAT of Smoke Disinfection Company.
BASIS OF VALUE ADDED TAX

Importation
• Landed cost is the total expenditure incurred including purchase price, shipping fee, customs
duties, excise tax, if any, and all other charges prior to the release of such goods from customs
custody.
BASIS OF VALUE ADDED TAX

Importation

Illustrative Example
Face Shield, classified as an essential article was imported for sale. The particulars of which are as follows.
Exchange rate is $1: 40 (no foreign currency is assumed at peso)
Value of Importation as Determined by the BOC $15,000
Freight and Insurance 20,000
Customs Duties 20,000
Other Expenses prior to the release of goods from customs custody 10,000
Facilitation expense 5,,000
Transfer costs from customs to the importer’s warehouse 25,000

Compute for the Value Added Tax?


BASIS OF VALUE ADDED TAX

Importation

Illustrative Example
BASIS OF VALUE ADDED TAX

Dealers of Securities
 Dealers of securities means merchant of stocks or securities with an established place of business,
regularly engaged in the purchase of securities and their resale to customers, that is one who as
merchant buys securities and sells them to customers, and with a view to be gains and profits that
may be derived therefrom.
BASIS OF VALUE ADDED TAX

Dealers of Securities

Illustrative Example
A dealer in securities has the following for the year 2018:
Sales, Shares held for sale in the ordinary course of trade or business 5,000,000
Cost of Shares, held for sale in the ordinary course of trade or business 2,000,000

Requirement: Compute for the output VAT.


SOURCES OF OUTPUT VAT

 Actual Sale of Goods or Properties


 Sale of goods where there are actual exchanges between buyer(s) and a seller(s) in the
ordinary course of trade or business. It includes actual sales from incidental transactions.
 Sale of Services
 Sale of Real Property
 Transactions Deemed Sales
 Zero Rated Sales
SOURCES OF OUTPUT VAT

 Sale of Real Properties


 Sale of real property primarily held in the normal course of business is subject to VAT. Output
VAT shall be based on the HIGHEST among selling price, FMV and zonal value.

Type of Sale Payment Terms Payment of Output VAT


Cash Sales If total selling price is paid Output VAT shall be reported during
immediately by the buyer the month of sale
Deferred If the buyer only paid portion of Same effect with cash sales. Output VAT
Sale selling price wherein initial payments shall be reported during the month of
exceed 25% of the selling price sale

Installment If the buyer only paid portion of The seller shall be subject to VAT on
Sale selling price wherein initial payments installment payments inclusive of
do not exceed 25% of the selling price interest and penalties
SOURCES OF OUTPUT VAT

 Sale of Real Properties


SOURCES OF OUTPUT VAT

 Sale of Real Properties


SOURCES OF OUTPUT VAT

 Sale of Real Properties


SOURCES OF OUTPUT VAT

 Sale of Real Properties


SOURCES OF OUTPUT VAT

Transactions Deemed Sales


 Transfer use or consumption NOT in the ordinary course of business of goods or properties
ordinarily intended for sale or use in the course of business. The basis in computing the
applicable VAT shall be the FMV of the goods consumed.
 Distribution or transfer to:
o Shareholders or investors as share in the profits of a VAT registered person
o Distribution or transfer to creditors in payment of debt or obligation
 Consignments of goods if actual sale is not made within 60 days following the date such goods
were consigned. Goods returned within 60-day period are not deemed sale.
 Retirement from or cessation of status as VAT registered person with respect to all “goods on
hand” (as of the date of retirement or cessation), whether or not the business is continued by
the new owner or successor. Goods on hand refer to capital goods, stock in trade and supplies
and materials (basis should be the acquisition cost or marker value whichever is LOWER).
SOURCES OF OUTPUT VAT

Zero Rated Sales


 A “zero rated sale” of goods, properties and/or services by a VAT registered person is a taxable
transaction for VAT purpose but shall not result in any output tax.
 The input tax on purchases of goods, properties or services, related to such zero-rated sale, shall
be available as
o Tax refund
o Claimed deduction against output VAT on domestic sales
o Claimed as tax credit (TCC) against any other internal revenue taxes
SOURCES OF OUTPUT VAT

Zero Rated Sales


 Zero Rated Sales of Goods
 Actual Export Sales
 Sale and actual shipment of goods from the Philippines to a foreign country, irrespective of any shipping
arrangement that may be agreed upon which may influence or determine the transfer of the goods so
exported and paid for in acceptable foreign currency of its equivalent in goods or services, and
accounted for in accordance with the rules and regulations of the Bangko Sentral ng Pilipinas.
 Deemed Export Sales (See next slide)
 Effectively Zero-Rated Sales
 It refers to local sale of goods and properties by a VAT registered person or entity who was granted
indirect tax exemption under special laws or international agreements. (RR 16-2005)
 Sales to entities exempt under a special law or under international agreements to which the Philippines
is a signatory effectively subjects such sales to zero rate:
- Sales of Goods to Asian Development Bank (ADB)
- International Rice Research Institute (IRRI)
SOURCES OF OUTPUT VAT

 Deemed Export Sales (Continuation)


Prior to 2018 TRAIN LAW
Sale of goods which are considered as “Deemed Export Sales” by a VAT- Items 2-4 are now subject to 12% VAT under Section 31 of RA 10963 (TRAIN
registered person to certain entities under Section 106(2)(a)(2-6) Law) but only upon satisfaction of the following:
 (2) Sale of raw materials or packaging materials to a non-resident  Successful establishment and implementation of an enhance
buyer for delivery to resident local export-oriented enterprise to be refund system that grants refunds of creditable input tax within 90
used in manufacturing, processing, packing or repacking in the days from the filling of the VAT refund application with the BIR.
Philippines of the said buyer’s goods, paid for in accordance with The 90 day period under the TRAIN Law to process and decide,
the rules and regulations of the BSP. pending the establishment of the enhanced VAT Refund System
 (3) Sales to export-oriented enterprise which the code considers as shall only be up to the date of approval of the Recommendation
export sales at the level of the supplier of raw materials. The sale is Report on such application for VAT refund by the Commissioner or
considered zero rated only if the sale is raw materials or packaging his duly authorized representative; provided, that all claims for
materials is made to export-oriented enterprise whose export sales refund/tax credit certificate filed prior to January 1, 2018 will be
exceed 70% of actual annual production. governed by the 120-day processing period.
 (4) Export sales under Executive Order No. 226, otherwise known  All pending VAT refund claims as of claims as of December 31, 2017
as the Omnibus Investment Code of 1987 and other special laws shall be fully paid in cash by December 31, 2019

 Sale of gold to Bangko Sentral ng Pilipinas  VAT Exempt


 Sale of goods, supplies, equipment and fuel to persons engaged in  0% VAT
international shipping or international air transport operations
SOURCES OF OUTPUT VAT

Zero Rated Sales


 Zero Rated Sales of Services
Prior to 2018 TRAIN LAW
 (1) Processing, manufacturing or repacking goods for other persons Items 1 and 2 are now subject to 12% VAT RA 10963 (TRAIN Law) but only upon
doing business outside the Philippines which goods are satisfaction of the following:
subsequently exported, where the services are paid for in
acceptable foreign currency and accounted for in accordance with  Successful establishment and implementation of an enhance refund system that
the rules and regulations of the Bangko Sentral ng Pilipinas grants refunds of creditable input tax within 90 days from the filling of the VAT
refund application with the BIR; and
 (2) Services performed by subcontractors and/or contractors in  All pending VAT refund claims as of claims as of December 31, 2017 shall be
processing, converting, or manufacturing goods for an enterprise fully paid in cash by December 31, 2019
whose export sales exceed 70% of the total annual production
 Services other than those mentions in item 1 above rendered to a person engaged in business conducted outside the Philippines or to a nonresident
person not engaged in busines who is outside the Philippines when the services are performed, the consideration for which is paid for in acceptable
foreign currency and accounted for in accordance with the rules and regulations of the Bangko Sentral ng Pilipinas (BSP).
 Services rendered to persons or entities whose exemption under special laws or international agreements to which the Philippines is a signatory
effectively subjects the supply of such services to 0% rate.
 Services rendered to persons engaged in international shipping of international air transport operations, including leases of property for use thereof.
 Transport of passengers and cargo by domestic air or sea vessels from the Philippines to a foreign country.
 Sale of power or fuel generated through renewable sources of energy such as, but not limited to, biomass, solar, wind, hydropower, geothermal, ocean
energy, and other emerging energy sources using technologies such as fuel cells and hydrogen fuels.
EXEMPT SALES TRANSACTIONS AND
SERVICES
SECTION 109 (A)
 Sale or importation of agricultural and marine food products in their original state (it did not
undergo process), livestock, and poultry of a kind generally used as, or yielding or producing
foods for human consumption, and breeding stock and genetic materials therefore.
 Products shall be considered in their “original state” even if they have undergone the simple
processes of preparation or preservation for the market, such as freezing, drying, salting,
broiling, roasting, smoking, or stripping including those using advanced technological means of
packing, tetra-pack, and other similar packaging methods.
EXEMPT SALES TRANSACTIONS AND
SERVICES
SECTION 109 (A)
Agricultural Marine Livestock Poultry
Polished/Husked Rice Fish Cows Fowls
Corn Grits Crustaceans such as: Bulls Ducks
Raw Cane sugar and • Lobster, shrimps Calves Geese
molasses • Prawns, oysters Pigs Tuyrkey
Copra • Mussels, clams Sheep
• Trout, eels Goats
Rabbits
EXEMPT SALES TRANSACTIONS AND
SERVICES
SECTION 109 (B)
 Sale or importation of fertilizers; seeds, seedlings and fingerlings; fish, prawn, livestock and
poultry feeds, including ingredients, whether locally produced or imported, used 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). (Section 109 B)
 Specialty feeds refer to non-agricultural feeds or food for racehorses, fighting cocks, aquarium
fish, zoo anim,als and other animals generally considered as pets are subject to VAT.
EXEMPT SALES TRANSACTIONS AND
SERVICES
SECTION 109 (C)
 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;
Provided, that such goods are exempt from customs duties under the Tariff and Customs Code
of the Philippines.
EXEMPT SALES TRANSACTIONS AND
SERVICES
SECTION 109 (D)
 Importation of professional instruments and implements, tools of trade, occupation or employment,
wearing apparel, domestic animals, and personal household effects belonging to persons coming to
settle in the Philippines or Filipinos or their families and descendants who are now residents or citizens
of other countries, such person herein referred to as overseas Filipinos, in quantities and of the class
suitable to the profession, rank or position of the persons importing said items, for their own use and not
for barter or sale, accompanying such persons, or arriving within reasonable time (90 days before or after
their arrival).
o Provided, that the Bureau of Customs, upon the production of satisfactory evidence that such
persons are actually coming to settle in the Philippines and that the goods are brought from their
former place of abode, exempt such goods from payment of duties and taxes
o Provided further, vehicles, vessels, aircrafts and machineries and other similar goods for use in
manufacture, shall not fall within this classification and shall therefore be subject to duties, taxes
and other charges.
EXEMPT SALES TRANSACTIONS AND
SERVICES
SECTION 109 (E)
 Services rendered by persons subject to percentage tax under Title V of the Tax Code (Sections
116-127)
EXEMPT SALES TRANSACTIONS AND
SERVICES
SECTION 109 (F)
 Services rendered by agricultural contract growers and milling for others of palay into rice,
corn into grits and sugar cane into raw sugar.
o “Agricultural contract growers” refer to those persons producing for others’ poultry,
livestock or other agricultural and marine food products in their original state.
Toll processing/toll dressing/toll Toll processing/toll dressing/toll
manufacturing is performed as a packaged to manufacturing is performed independently
toll growing from growing poultry, livestock or other
  agricultural and marine food product.
 
VAT EXEMPT Subject to 12% VAT
EXEMPT SALES TRANSACTIONS AND
SERVICES
SECTION 109 (G)
 Services rendered by medical, dental, hospital and veterinary services except those
rendered by professionals.
 RR 14-2013 provides that hospital and clinics shall not allow their medical practitioners to
receive payment of professional fees directly from patients who were admitted and
confined to such hospital or clinic and, instead, must include the professional fees in the
total medical bill of the patient which shall be payable directly to the hospital or clinic.
 Therefore, under the new revenue regulations, professional fees of medical practitioners
rendered to inpatients should no longer be subject to VAT because such fees should have
already been included in the “Hospital bills” which is a tax exempt.
EXEMPT SALES TRANSACTIONS AND
SERVICES
SECTION 109 (G)
EXEMPT SALES TRANSACTIONS AND
SERVICES
SECTION 109 (H)
 Educational services rendered by private educational institutions, duly accredited by the
Department of Education (DepEd), the Commission of Higher Education (CHED), the
Technical Education and Skills Development Authority (TESDA) and those rendered by
government educational institutions. (Section 109 H)
o Educational services shall refer to academic, technical or vocational education provided
by private educational institutions duly accredited by the DepEd, the CHED and TESDA
and those rendered by government educational institutions and it does not include
seminars, in-service training, review classes and other similar services rendered by
persons who are not accredited by the DepEd, the CHED and/or TESDA
EXEMPT SALES TRANSACTIONS AND
SERVICES

SECTION 109 (I)


 Services rendered by Individuals pursuant to an employer-employee
relationship.
EXEMPT SALES TRANSACTIONS AND
SERVICES

SECTION 109 (J)


 Services rendered by regional or area headquarters established in the
Philippines by multinational corporations which act as supervisory,
communications and coordinating centers for their affiliates, subsidiaries or
branches in the Asia-Pacific Region and do not earn or derive income from
the Philippines.
EXEMPT SALES TRANSACTIONS AND
SERVICES

SECTION 109 (K)


 Transactions which are exempt under international agreements to which the
Philippines is a signatory or under special laws, except those under
Presidential Decree No. 529 (Petroleum Exploration Concessionaires under the
Petroleum Act of 1949)
EXEMPT SALES TRANSACTIONS AND
SERVICES
SECTION 109 (L)
 Sales by agricultural cooperatives duly registered with the Cooperative Development
Authority (CDA) to their members, as well as sale of their produce, whether in its original
state or processed form, to nonmembers; their importation of direct farm inputs,
machineries and equipment, including spare parts thereof, to be used directly and
exclusively in the production and/or processing of their produce.

Sales by Agricultural Cooperatives To Members To Non-members


Sale of cooperative’s own produce (processed or at its
original state) Exempt Exempt
Other than the cooperative’s own produce (traders) Exempt VAT
EXEMPT SALES TRANSACTIONS AND
SERVICES

SECTION 109 (M)


 Gross receipts from lending activities by credit or multi-purpose cooperatives
duly registered with the CDA. Exemptions is not only limited to the gross
receipts on loan extended to its members but also to non-members.
Gross Receipts by Credits or Multi-purpose From Members From Non-
Cooperatives members
From lending activities
Exempt Exempt
From non-lending activities
VAT VAT
EXEMPT SALES TRANSACTIONS AND
SERVICES

SECTION 109 (N)


 Non-agricultural, non-electric and non-credit cooperatives duly registered
with the CDA; Provided, that, the share capital contribution of each member
does not exceed P15,000 and regardless of the aggregate capital and net
surplus ratably distributed among the members.
From Non-
Gross Receipts/Sales By: From Members
members
Electric Cooperatives VAT VAT
Non-agricultural, non-electric, non-lending/credit cooperatives    
o Contribution per member is less than/equal to P15,000 Exempt Exempt
o Contribution per member is greater than to P15,000 VAT VAT
EXEMPT SALES TRANSACTIONS AND
SERVICES

SECTION 109 (O)


 Persons who are not VAT-registered on their export sales.
By a Non VAT
VAT Exempt
Registered Person
Export Sales

By a VAT Registered Vatable at 0%


Person (Zero Rated Sales)
EXEMPT SALES TRANSACTIONS AND
SERVICES

SECTION 109 (P)


 Sale of real properties not primarily held for sale to customers or held for lease
in the ordinary course of trade or business.
 If property sold is used in the trade or business of the seller, the sale shall be
subject to VAT as an incidental transaction to the seller’s main business.
EXEMPT SALES TRANSACTIONS AND
SERVICES
SECTION 109 (P)
 Sale of real properties utilized for low-cost and socialized housing as defined by RA 7279, otherwise known
as the Urban Development and Housing Act of 1992, and other related laws.
 Low-cost housing refers to housing projects intended for homeless low income family beneficiaries,
undertaken by the Government or private developers, which may either be a subdivision or a
condominium, registered and licensed by the Housing and Land Use Regulatory Board/Housing
(HLURB) under BP BLG 220, PD 957, or any other similar law, wherein the unit selling price is within the
selling price per unit as set by the Housing and Urban Development Coordinating Council (HUDCC).
 On the other hand, socialized housing refers to housing programs and projects covering houses and
lots or home lots only undertaken by the Government or the private sector for the underprivileged
and homeless citizens which shall not exceed P450,000 for a house and lot package. In the case of
home lots only, the price shall not exceed 40% of the maximum limit prescribed for the house and
lot package.
EXEMPT SALES TRANSACTIONS AND
SERVICES
SECTION 109 (P)
 Sale of residential lot valued at P1,500,000 and below beginning January 1, 2018 (previously P1,919,500) or house and lot, and
other residential dwellings valued at P2,500,000 and below beginning January 1, 2018 (previously P3,199,500). (Section 109 P)
 Sale of adjacent lots
o If two or more adjacent residential lots are sold or disposed in favor of one buyer, for the purpose of utilizing the lots
as one residential lot, the sale shall be exempt from VAT only if the aggregate value do not exceed P1,500,000.
o Adjacent lots, although covered by separate titles or tax declaration, when sold to one and the same buyer, whether
covered by one or separate Deed of Conveyance, shall be presumed as sale of one residential lot.
o Beginning January 1, 2021, the VAT exemption shall not apply to sale of real properties not primarily held for sale to
customers or held for lease in the ordinary course of trade or business, sale of real property utilized for socialized
housing, sale of house and lot and other residential dwellings with selling price of not more than P2,000,000; provided
further, that every 3 years thereafter, the amounts stated herein shall be adjusted to its present value using the
Consumer Price Index, as published by the Philippines Statistics Authority (PSA).
 Sale of Parking Lot in the Sale of Condominium Units
o The sale of parking lot in a condominium is separate and distinct transaction and is not covered by the rules on
threshold amount not being a residential lot, house and lot or a residential dwelling; thus, should be subject to VAT
regardless of amount of selling price.
EXEMPT SALES TRANSACTIONS AND
SERVICES

SECTION 109 (P)


Sale of Real Properties  
Sale NOT in the ordinary course of trade or business VAT Exempt, Capital Gains Tax
Sale of Residential Lots  
 Selling Price is less than or equal to P1,500,000 per lot VAT Exempt
 Selling Price is more than to P1,500,000 per lot VAT
Sale of Residential House and Lot and Other Dwellings
 Selling Price is less than or equal to P2,500,000 (2M starting Jan 1, VAT Exempt
2021) per lot
 Selling Price is more than to P2,500,000 (2M starting Jan 1, 2021) VAT
per lot
Sales of real property classified as low cost housing VAT Exempt
Sale of real property classified as socialized housing VAT Exempt
EXEMPT SALES TRANSACTIONS AND
SERVICES
SECTION 109 (Q)
 Lease of a residential unit with a monthly rental not exceeding P15,000 (previously 12,800). (Section 109 Q)
 The term residential units shall refer to apartments and houses and lots used for residential purposes, and buildings or
parts or units thereof used solely as dwelling places (e.g., dormitories, rooms and bed spaces) except motels, motel rooms,
hotels, hotel rooms, lodging houses, inns, and pension houses. On the other hand, the term “unit” shall mean an apartment
unit in the case of apartments, house in the case of residential houses; per person in the case of dormitories, boarding
houses and bed spaces; and per room in case of rooms for rent.
 In cases where a lessor has several residential units for lease, some are leased out for a monthly rental per unit of not
exceeding P15,000 while others are leased out for more than P15,000 per unit his tax Liability will be:
o The gross receipts from rentals not exceeding P15,000 per month per unit shall be exempt from VAT regardless of the
aggregate annual gross receipts.
o The gross receipts from rentals exceeding P15,000 per month per unit shall be subject to VAT if the annual gross
receipts exceed P3,000,000 from said units only – not including the gross receipts from units leased out for not more
than P15,000. Otherwise, the gross receipts shall be subject to 3% percentage tax.
EXEMPT SALES TRANSACTIONS AND
SERVICES

SECTION 109 (Q)


Lease of Residential and Commercial Units  
Lease of Residential Units where monthly rental is less than or equal to P15,000 Exempt to Business Tax
Lease of Residential Units where monthly rental is greater than P15,000  
 Annual Receipts of the lessor is less than or equal to P3,000,000 Subject to 3% OPT  
 Annual Receipts of the lessor is greater than P3,000,000 Subject to VAT
Lease of Commercial Units
Subject to 12% VAT if VAT register or annual gross receipts exceeds 3M
Otherwise, subject to 3% OPT
Note
Gross receipts from lease of commercial property is subject to 12% VAT if the property
subject to lease is located in the Philippines regardless of the place where the contract
of lease was executed.
Advance payment by the lessee is subject to VAT if the payment is applied to rentals
such as prepaid rent. On the other hand, it is not subject to VAT if the advance
payment is not a rental payment but:
 A loan to the lessor from the lessee
 An option money for the property
 A security deposit to insure the faithful performance of certain obligations of the
lessee to the lessor.
EXEMPT SALES TRANSACTIONS AND
SERVICES
SECTION 109 (R)
 Sale, importation, printing or publication of books and any newspaper, magazine, review, or
bulletin which appears at regular intervals with fixed prices for subscription and sale and which
is not devoted principally to the publication of paid advertisements.
EXEMPT SALES TRANSACTIONS AND
SERVICES

SECTION 109 (S)


 Transport of passengers by international carriers doing business in the
Philippines. The same is not subject to other percentage taxes as amended
under TRAIN Law.
EXEMPT SALES TRANSACTIONS AND
SERVICES

SECTION 109 (T)


 Sale, importation or lease of passenger or cargo vessels and aircraft, including
engine, equipment and spare parts thereof for domestic or international
transport operations; provided, that, the exemption from VAT on the
importation and local purchase of passenger and/or cargo vessels shall be
subject to the requirements on restriction on vessel importation and mandatory
vessel retirement program of MARINA.
EXEMPT SALES TRANSACTIONS AND
SERVICES
SECTION 109 (U)
 Importation of fuel, goods and supplies by persons engaged in international shipping or air
transport operations
 Provided, that the said fuel, goods and supplies shall be used for exclusively or shall pertain
to the transport of goods and/or passenger from a port in the Philippines directly to a
foreign port, or vice versa, without docking or stopping at any other port in the
Philippines, unless the docking or stopping at any other Philippine port is for the purpose of
unloading passengers and/or cargoes that originated from abroad, or to load passengers
and/or cargoes bound for abroad
 Provided, further, that if any portion of such fuel, goods or supplies is used for purposes
other than that mentioned in this paragraph, such portion of fuel, goods and supplies shall
be subject to 12% VAT.
EXEMPT SALES TRANSACTIONS AND
SERVICES

SECTION 109 (V)


 Services rendered by banks, non-bank financial intermediaries performing
quasi-banking functions, and other non-bank financial intermediaries such as
money changer, pawnshops, subject to OPT.
EXEMPT SALES TRANSACTIONS AND
SERVICES

SECTION 109 (W)


 Sale or lease of goods and services to senior citizens and persons with
disabilities, as provided under RA 9994 (Expanded Senior Citizens Act of 2010)
and RA No. 10754 (An Act Expanding the Benefits and Privileges of Persons with
Disability).
EXEMPT SALES TRANSACTIONS AND
SERVICES
SECTION 109 (W)
 VAT Exemption and Discount for Senior Citizens
o Senior Citizen refers to elderly who is a resident of the Philippines, 60 years old and above.
o VAT Exempt Sales to Senior Citizen (Section 4, RR 7-2010)
 Medicine and drug purchases including influenza and pneumococcal vaccines and such other essential medical supplies,
accessories, and equipment.
 Professional fees of attending physicians in all private hospitals, medical facilities, outpatient clinics and home health care
services
 Professional fees of licensed health workers providing home health care services in all private hospitals, medical facilities,
outpatient clinics and home health care services
 Medical and dental services, diagnostics and laboratory fees
 On actual fare for land transportation fees
 In actual fare for domestic air transport and sea shipping vessels and the like
 On the utilization of services in hotels and similar lodging establishments, restaurants, recreation centers
 On admission fees charged by theaters, cinema houses and concert halls, circuses, carnivals, and other similar places of
culture, leisure and amusement
 On funeral burial services of senior citizens
EXEMPT SALES TRANSACTIONS AND
SERVICES

SECTION 109 (W)


 VAT Exemption and Discount for Senior Citizens
EXEMPT SALES TRANSACTIONS AND
SERVICES

SECTION 109 (W)


 VAT Exemption and Discount for Senior Citizens
EXEMPT SALES TRANSACTIONS AND
SERVICES
SECTION 109 (W)
 VAT Exemption and Discounts to PWDs
o Persons with disability (PWD) shall refer to an individual suffering from restriction or
different abilities, as a result of mental, physical or sensory impairment to perform an
activity in a manner or within the range considered normal for human being.
o The following are the exemption or privileges that PWD may claim:
 PWD may claim 20% discount and exemption from the VAT (same item and
computation with Senior Citizens):
 Educational assistance for them to pursue primary, secondary, tertiary, post tertiary, as
well as vocational or technical education, in both public and private.
 To the extent possible, the government may grant special discounts in special programs
for PWD on purchase of basic commodities, subject to the guidelines to be issued for
the purpose by the DTI and DA.
EXEMPT SALES TRANSACTIONS AND
SERVICES
SECTION 109 (W)
 VAT Exemption and Discounts to PWDs
EXEMPT SALES TRANSACTIONS AND
SERVICES

SECTION 109 (X)


 Transfer of property pursuant to Section 40(C)(2) of the tax code (tax free
exchanges such as transfer to a controlled corporations or merger or
consolidation), as amended (Upon effectivity of TRAIN Law only, new
provision).
EXEMPT SALES TRANSACTIONS AND
SERVICES

SECTION 109 (Y)


 Association dues, membership fees, and other assessments and charges
collected on a purely reimbursement basis by homeowners’ associations and
condominium, corporations established under RA No 9904 (Magna Carta for
Homeowners’ and Homeowners’ Association) and RA No 4726 (Condominium
Act), respectively.
EXEMPT SALES TRANSACTIONS AND
SERVICES

SECTION 109 (Z)


 Sale of Gold to the Bangko Sentral ng Pilipinas (BSP) (Previously it is subject to
0% VAT) beginning January 1, 2018.
EXEMPT SALES TRANSACTIONS AND
SERVICES

SECTION 109 (AA)


 Sale of drugs and medicines prescribed for diabetes, high cholesterol, and
hypertension beginning January 1, 2019.
EXEMPT SALES TRANSACTIONS AND
SERVICES

SECTION 109 (BB)


 Sale or lease of goods or properties or the performance of services other than
the transactions mentioned in the preceding paragraphs, the gross annual sales
and/or receipts do not exceed the amount of P3,000,000 (previously
P1,919,500).
INPUT TAX

 Input tax means a VAT due from or paid by a VAT-registered person in the
course of his trade or business on importation of goods or local purchase of
goods or services including lease or use of property, from a VAT-registered
person
SOURCES OF INPUT TAX

 Local Purchase of Goods, Services and Capital Goods


 Importation
 Transitional Input VAT (2%)
 Presumptive Input VAT (4%)
 Standard Input VAT (7%)
SOURCES OF INPUT TAX

 Local Purchase of Goods or Services


 Goods for sale
 Goods for conversion into or intended to form part of a finished product for sale including
packaging materials
 Goods for use as supplies in the course of business
 Goods for use as materials supplied in the sale of services
 Real properties for which VAT has actually been paid
 Services on which VAT has been actually paid
 Goods for use in trade or business for which deduction for depreciation or amortization is
allowed, except automobiles, aircraft, and yacht (Capital Goods)
SOURCES OF INPUT TAX

 Local Purchase of Goods or Services


SOURCES OF INPUT TAX

 Sale of Capital Goods


 It refers to goods or properties with estimated useful life of greater than 1 year and which are treated as depreciable
assets under the tax code, used directly or indirectly in the production or sale of taxable goods or services
INPUT VAT on Capital Goods (RR 16-2005)
Aggregate Purchase Price during the month (exclusive of VAT)
More Than P1,000,000 Not More than P1,000,000
   
 Input tax shall be spread or allocated evenly during the estimated useful life of the depreciable  Input tax is not allocated.
asset but it shall not exceed 60 months.  The total amount of input VAT shall be
 Allocation shall commence in the calendar month when the capital goods was acquired. treated as tax credit against output VAT in
 If the capital good is sold within 5 years from purchase or prior to exhaustion of input VAT the month of acquisition.
thereon, the entire unamortized input VAT on the capital goods sold can be claimed as input tax
credit during the month or quarter when the sale is made.
 If the life of the capital goods or depreciable asset is equal or less than 1 year, the asset is not
treated as a capital goods subject to depreciation; Hence, allocation of input VAT is not
applicable. The total amount of input VAT shall be claimed in the month of acquisition.
SOURCES OF INPUT TAX

 Goods for use in trade or business for which deduction for depreciation or amortization is allowed, except automobiles, aircraft, and
yacht (Capital Goods)
SOURCES OF INPUT TAX

 Goods for use in trade or business for which deduction for depreciation or amortization is allowed, except automobiles, aircraft, and
yacht (Capital Goods)
SOURCES OF INPUT TAX

 Goods for use in trade or business for which deduction for depreciation or amortization is allowed, except automobiles, aircraft, and
yacht (Capital Goods)
SOURCES OF INPUT TAX

 Goods for use in trade or business for which deduction for depreciation or amortization is allowed, except automobiles, aircraft, and
yacht (Capital Goods)
SOURCES OF INPUT TAX

 Importation
• VAT on importation is imposed regardless of whether such importation is for personal or
business use. Although importation is not a sale of goods, or sometimes not even a
business activity, VAT is imposed because VAT is a consumption tax levied on sales to be
borne by consumers with sellers acting simply as tax collectors. And, as the origin of
importation is from a foreign seller, the VAT is instead paid directly by the importer.
• In the case of goods imported into the Philippines by VAT-exempt persons, entities or
agencies which subsequently sold, transferred or exchanged in the Philippines to non-
exempt persons or entities, the latter person shall be considered the importers thereof
and shall be liable for the VAT due on such importation.
SOURCES OF INPUT TAX

 Importation
SOURCES OF INPUT TAX

 Importation
SOURCES OF INPUT TAX

 Importation
SOURCES OF INPUT TAX

 Transitional Input VAT (2%)


• Person who becomes liable to VAT or any person who elects to be VAT-registered person
shall, subject to the filling of an inventory according to rules and regulations prescribed by
the Secretary of Finance, upon recommendation of the Commissioner, be allowed input
tax on his beginning inventory of goods, materials and supplies equivalent to 2% of the
value of such inventory or the actual VAT paid on such goods, materials and supplies,
whichever is higher, which shall be creditable against the output tax.
SOURCES OF INPUT TAX

 Transitional Input VAT (2%)


SOURCES OF INPUT TAX

 Presumptive Input VAT (4%)


 Persons or firms engaged in the processing of sardines, mackerel and milk, and in
manufacturing refined sugar and cooking oil, shall be allowed a presumptive input tax,
creditable against the output tax equivalent to 4% of the gross value of money of their
purchases of “primary agricultural products” which are used as inputs to their
production.
 The term processing shall mean pasteurization, canning and activities which through
physical or chemical process alter the exterior texture or form or inner substance of a
product in such manner as to prepare it for special use to which it could not have been
put in its original form or condition.
 Agricultural products for purposes of presumptive input Vat does not include marine
products.
SOURCES OF INPUT TAX

 Presumptive Input VAT (4%)


SOURCES OF INPUT TAX

 Presumptive Input VAT (4%)


SOURCES OF INPUT TAX

 Standard Input VAT (7%)


 This refers to sale made to government or any of its political subdivisions, instrumentalities, or
agencies, including government-owned and controlled corporations (GOCCs)
 The 5% withholding VAT shall be remitted within 10 days from the close of the month the
withholding was made.
 The 5% final VAT withholding rate shall represent the net VAT TRAIN LAW
payable of the seller. The remaining 7% effectively accounts for the  Beginning 2021, the VAT withholding system shall
standard input VAT for sales of goods or services to government or shift from final to a creditable VAT system.
any of its political subdivisions, instrumentalities or agencies  Payments for purchases of goods and services
including GOCCs in lieu of the actual input VAT directly attributable arising from projects funded by Official
or ratably apportioned to such sales. Development Assistance (ODA) under RA 8182 shall
 Should actual input VAT attributable to sales to government exceeds not be subject to withholding of VAT.
7% of the gross payments, the excess may form part of the sellers’  The payor shall be considered the withholding
expense or cost. agent.
 On the other hand, if the actual input VAT attributable to sale to
government is less than 7% of gross payments, the difference must
be closed to income.
SOURCES OF INPUT TAX

 Standard Input VAT (7%)


SOURCES OF INPUT TAX

 Standard Input VAT (7%)


CARRY OVER OF EXCESS INPUT TAX

 Under RR 2-2007 provides that, if the input tax inclusive of the input tax carried
over from the previous quarter exceeds the output tax, the excess input tax shall
be carried over to the succeeding quarter or quarters; Provided, however, that
any input tax attributable to zero-rated sales by a VAT registered taxpayer may at
his option be refunded or applied for a tax credit certificate which may be used
in the payment of other internal revenue taxes.
MIXED BUSINESS TRANSACTIONS

• A VAT registered person who is engaged in a combination of sales to


VAT, Zero-rated VAT and VAT Exempt transactions.
• Input VAT allocated to exempt sales in the below formula is treated as
expense or cost.
MIXED BUSINESS TRANSACTIONS
TAX RETURN PREPRATION, RILLING AND
COMPLIANCE REQUIREMENTS
Invoicing Requirement, Refund of Input Taxes and Others
 VAT Invoice and VAT Official Receipt
• A VAT registered person shall issue:
o A VAT invoice every sales, barter, or exchange of goods or properties; and
o A VAT official receipt for every lease of goods or properties, and for every sales, barter or exchange of services.

 Invoicing Requirements
• The following requirements shall be indicated in VAT invoice or VAT official receipt:
o A statement that the seller is VAT registered person followed by TIN.
o The total amount to be paid with the indication that such amount includes:
o Amount of tax shall be shown as a separate item in the invoice receipt.
o “VAT exempt sale” if the sale is exempt.
o “Zero-rated sale” if the sale is subject to 0% VAT.
o If mixed sales, breakdown of the sales price between its taxable, exempt, and zero-rated components and the calculation
of the VAT on each portion. Separate invoices or receipts may be issued for each type of sales.
o The name, business style, if any, address, and TIN of the customer, in case the sales amount to P1,000,000 or more.
TAX RETURN PREPRATION, RILLING AND
COMPLIANCE REQUIREMENTS
Invoicing Requirement, Refund of Input Taxes and Others
 Consequence of Issuing Erroneous Invoice or Official Receipt
• By Non-VAT Registered Person
- The taxpayer will be liable on percentage taxes applicable to his transactions, VAT due on
the transactions where he erroneously issued invoice or official receipt without the
benefit of any tax credit and 50% surcharge.
• By a VAT Registered Person
• For instance the sale is for a VAT exempt customer, failure to indicate “VAT Exempt” the
transaction will become taxable and the issuer shall be liable to pay the VAT thereon.
TAX RETURN PREPRATION, RILLING AND
COMPLIANCE REQUIREMENTS
Accounting Requirement
All persons subject to VAT shall maintain:
 Regular accounting records
 Subsidiary sales journal
 Subsidiary purchase journal
TAX RETURN PREPRATION, RILLING AND
COMPLIANCE REQUIREMENTS

When Filling of Tax Return Required


 Person subject to VAT, gross sales/receipts exceed P3,000,000.
 Person required to register as VAT taxpayer but failed to register.
 Any person, whether or not made in business who import goods.
TAX RETURN PREPRATION, RILLING AND
COMPLIANCE REQUIREMENTS

Where to File VAT Return


 Authorized Agent Bank (AAB) under jurisdiction of RDO where taxpayer
(head office) is required to register.
 Revenue collection officer
 Duly authorized treasurer of the municipality or city
TAX RETURN PREPRATION, RILLING AND
COMPLIANCE REQUIREMENTS
Deadline of Filling VAT Returns
 Monthly VAT Returns (BIR Form 2550M)
o Manual Filling - Not later than the 20th day following the end of each month.
o Electronic Filling and Payment System (EFPS)
Group Deadlines
Group A 25 days following the end of the month
Group B 24 days following the end of the month
Group C 23 days following the end of the month
Group D 22 days following the end of the month
Group E 21 days following the end of the month

 Quarterly VAT Returns (BIR Form 2550Q)


o Within 25 days following the close of the taxable quarter.
TAX RETURN PREPRATION, RILLING
AND COMPLIANCE REQUIREMENTS
Documentary Requirements
o Duly issued Certificate of Creditable VAT Withheld at Source (BIR Form No. 2307), if
applicable
o Summary Alphalist of Withholding Agents of Income Payments Subjected to Withholding Tax
at Source (SAWT), if applicable
o Duly approved Tax Debit Memo, if applicable
o Duly approved Tax Credit Certificate, if applicable
o Authorization letter, if return is filed by authorized representative
o For quarter return, previously filed return and proof of payment, for amended return
QUESTIONS
THANK YOU!

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