BUSINESS TAX

• What is a business tax?

• Why is business tax called as such?
• "In the course of trade or business"
• "For subsistence or livelihood"
• To whom does vat provisions pertain to?
• Is isolated transaction subject to business tax?
• Are "services rendered in the Philippines by a non-resident foreign persons" treated as
part of the activities pursued in the ordinary course of business?
• Business Taxes are based on? What if the result of the business operation is a loss?

NOTE: Business taxes are in addition to income and other taxes paid, unless specifically
exempted

• Who are the marginal income earners?

• Are marginal income earners subject to business tax?
• The activities of MIEs should be principally for?
• It include individuals such as but not limited to? (4)
• MIEs does not include? (6)

TYPES OF BUSINESS TAXES

• What are the three major business taxes in the Philippines? EXPLAIN

VALUE ADDED TAX

• What is VAT?
• VAT is a tax levied on?
• What does "Cross border doctrine" means?
• What are the kinds of VAT?
• Who are the persons liable in sale in the ordinary course?
• Who are the persons liable in importation?
• Who are the persons liable in transfer made by a tax-exempt entity to none-tax exempt
entity?

MEANING OF THE TERM "GOODS OR PROPERTIES"

• What is the deal with the term "goods or properties"

• "Goods or properties" includes?

SALE OF SERVICES

• What does "sale of services" means?

• What is the deal on vat on sale of service?
• Is it an indirect tax?
• The tax is imposed on the?
• When does the accrues?
SALE OF REAL PROPERTIES

• What is the deal with the sale of real properties?

• What is the deal in case of sale of real properties on instalment plan?

CHARACTERISTICS OF VAT

• What are the characteristics of VAT? (4)

BASIS OF VALUE ADDED TAX

• What is the law that governs the implementation of VAT?

• What is the VAT rate?
• What is the tax base of sale of goods or properties?
• What is the tax base of sale of services?
• What is the tax base of importation?
• What is the tax base of dealers in securities?

SALE OF GOODS OR SERVICES TO SENIOR CITIZENS AND PWDs

• Are the senior citizens and PWDs subject to 12% VAT?

• What is the gross selling price? Is it inclusive or exclusive of VAT?
• Is the excise tax included in the gross selling price?
• When is the gross selling price deemed to be inclusive of VAT?
• In case of sale, barter, or exchange of real property subject to VAT, what is the gross
selling price?
• What is the deal if the gross selling price is based on zonal or market value of
property?

GROSS RECEIPTS

• What is the meaning of gross receipts? Is it inclusive or exclusive of VAT?

• When does constructive receipt occurs?
• What are the examples of constructive receipts? (3)

ADVANCE PAYMENTS

• What is the deal with advance payments?

VAT REGISTRATION
MANDATORY REGISTRATION

• Who are the persons/entity required for mandatory registration? (3)

• What is the penalty for non-registration for those required to register?

VAT THRESHOLD FOR HUSBAND AND WIFE

• What is the vat threshold for husband and wife?

 • Are husband and wife considered as separate taxpayers?
• Does the aggregate rule for each taxpayer also apply?
• Does VAT-exempt sales included in determining the threshold?

OPTIONAL REGISTRATION

• Who are the persons/entity who may opt for optional registration? (3)
• When can the above stated taxpayers apply for vat registration?
• Can the Commissioner for Internal Revenue deny registration?
• The taxpayers who opt for optional registration is now liable and entitled for?

CANCELLATION OF REGISTRATION

• What are the instances when a VAT-registered person may cancel his VAT
registration? (2)
• When is the cancellation for registration be effective?

POWER OF THE COMMISSIONER TO SUSPEND BUSINESS OPERATIONS

• Can the Commissioner of internal revenue or his authorize representative may order
suspension or closure of business? Until when?
• What are the violations that may lead to suspension and closure of the business? (4)

COMPUTATION OF VAT PAYABLE

• What is the formula for the computation of the VAT Payable?
• Is output tax considered as an ad valorem tax?
• What is the deal with raw sugar and refined sugar?
• What is the base price for the amount of advance vat payment?
• What are the goods exempt from advance vat payment?
• What is the deal with the withdrawal or transfer of ownership of sugar?
• What is the deal with credit for advance payment?

OTHER PERCENTAGE TAXES (OPT)

• What is other percentage taxes?
• Who are subject to other percentage tax?

EXCISE TAX
• What is an excise tax?
• What are the goods manufacture or imported under this category?
• What are the types of excise tax?
• Who are the taxpayers liable to excise tax?
• What are the purposes of imposing excise tax?
• Who are the importer?
• Is importation a sale of goods?
• Is importation is subject to VAT? Why?
• Who paid the VAT?