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Module 4 Vat System

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34 views4 pages

Module 4 Vat System

Uploaded by

kristeldesigns825
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
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VAT SYSTEM

VATABLE TRANSACTIONS:

If the sales of goods or services is not among those exempt, not among those listed
under OPT and the sales is more than P3,000,000/year.
RA 11976, EASE of PAYING TAX, Classification of Taxpayers according to amount of Sales:
• Micro - with gross sales of less than ₱3,000,000
• Small - with gross sales of ₱3,000,000 to less than ₱20,000,000
• Medium - with gross sales of ₱20,000,000 to less than ₱1,000,000,000
• Large - with gross sales of ₱1,000,000,000 and above

Special Concession
Micro and Small Taxpayers –
• Reduced civil penalties (10% surcharge);
• 6% interest;
• P500 penalty for failure to file certain information returns;
• 50% of compromise penalty on violations on invoicing/printing of invoices)
VAT SYSTEM
Actual Sales, P400,000 X 12%=P48,000
12% OUTPUT VAT, Deemed Sales, P100,000 X12% = 12,000
Sales to govt unit, P100,00 X 12% = 12,000
Total P72,000
Purchases of Goods and Services
Less: Creditable INPUT VAT from other VAT person P500,000 X 12% = 60,000

= Net VAT Due = 12,000

Less: Creditable W/tax For 2307 = 5,000

= Net VAT Payable = 7,000

Output tax means the VAT due on the sale, lease or exchange of taxable goods or properties or services by any
person registered or required to register as VAT under Section 236 of the Tax Code.

Input tax means the VAT due on or paid by a VAT-registered on importation of goods or local purchase of goods,
properties or services, including lease or use of property in the course of his trade or business. It shall also include
the transitional input tax determined in accordance with Section 111 of the Tax Code, presumptive input tax and
deferred input tax from previous period.
OTHER SOURCES OF CREDITABLE INPUT VAT:
 12% of importation (in general, all importations are liable to Philippine VAT)
 4% presumptive INPUT VAT of agri-food product prime materials
 2% Transitional INPUT VAT on beginning inventory as 1st time VAT business
Deemed sales for VAT computation purposes, these are not actual sales but liable to VAT

ACTUAL SALES
OUTPUT VAT = 12% GROSS RECEIPTS
DEEMED SALES

Deemed sales of goods and properties:


Transfer, use or consumption not in the course of business of goods or properties originally
intended for sale or for use in the course of business (inventory/PPE);
Consignment of goods if actual sale is not made within 60 days following the date such goods
were consigned; and
Distribution or transfer of inventory to shareholders or investors as share in the profits of the
VAT-registered persons;

Distribution/transfer of inventory to creditors in payment of debt;


Transfer of Ordinary Assets as donation.
Retirement from or cessation of business, with respect to inventories of taxable goods (inventory
and item of PPE) existing as of such retirement or cessation.
TAXABLE AMOUNT OF DEEMED SALES

For “transactions deemed sale,” the taxable base is the market value (selling price) of
such goods as of the occurrence of the transaction considered as sale. (Sec.106B, NIRC)

Where the gross selling price is unreasonably lower than the actual market value, the
Commissioner shall determine the appropriate tax base for 12% VAT. (Sec.106D3, NIRC)

The gross selling price is unreasonably lower than the actual market value if it is lower
by more than 30% of the actual market value of the same goods of the same quantity or
quality sold in the immediate locality or the nearest date of sale. (Sec. 4.106-7b, R.A.
9337)

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