WHAT IS OUTPUT?

Means the VAT due on sale or lease of taxable goods or properties or services by any person registered
as a VAT entity.

WHAT IS INPUT?
Means the VAT due from or paid by a VAT registered entity in the course of trade or business on
purchase, importation, lease or use of goods or properties or services from VAT supplier.

WHAT IS PAYABLE?
Output tax minus input tax to arrive at VAT payable on a monthly VAT declaration and the quarterly
VAT returns.

WHAT IS EXCESS INPUT OVER OUTPUT?

If the amount of input is greater than the amount of output tax, the resulting amount is treated as Tax
Credit (deferred asset). If the excess input over output arises from a quarter return it may be carried
over to the next month or quarter return. If the excess input over output arises from a monthly return it
can only be carried over to the next month’s return.

WHAT IS THE RATE AND BASE OF OUTPUT VAT?

There shall be levied, assessed and collected on every sale, barter or exchange of goods or properties, a
value-added tax equivalent to 12% of the gross selling price or gross value in money of the goods or
properties sold, bartered or exchanged, such tax to be paid by the seller or transferor. In case of sale of
service the base is gross receipts and in case of importation the base is landed cost.