PART TWO. VALUE ADDED TAX as amended by RA No.

10963 (TRAIN)

2. Value-Added Tax

a. Concept,characteristics/elements of· VAT-taxable transactions

b. Impact and incidence of tax

c. Destination Principle/ Cross Border Doctrine d. Persons liable

e. Imposition of VAT

f.1. On sale of goods or properties

f.2. On importation of goods

f.2.1 Transfer of goods by tax exempt persons

f.3. On services f. Transactions deemed sale

g.1. Transfer, use or consumption not in the course of business of goods/properties originally intended
for sale or use in the course of business

g.2. Distribution or transfer to shareholders, investors or creditors

g.3. Consignment of goods if actual sale is not made within 60 days from date of consignment

g.4. Retirement from or cessation of business with respect to inventories on hand

g. Change or cessation of status as VAT-registered person

h.1. Subject to VAT·

h.1.1. Change of business activity from VAT taxable status to VAT-exempt status

h.1.2. Approval of request for cancellation of a registration due to reversion to exempt status

h.1.3. Approval of request for cancellation of registration due to desire to revert to exempt status after
lapse of 3 consecutive years

h.2. Not subject to VAT

h.2.1. Change of control of a corporation

h.2.2. Change in the trade or corporate name

h.2.3. Merger or consolidation of corporations

h. Zero-rated and effectively zero-rated sales of goods or properties

i. VAT-exempt transactions

j.1. VAT exempt transactions, in general

j.2. Exempt transaction, enumerated

j. Input and Output tax

m. Refund or tax credit of excess input tax

m.1. Who may claim for refund/apply for issuance of tax credit certificate

m.2. Period to file claim/apply issuance of tax credit certificate

m.3. Manner of giving refund

m.4. Destination principle/Cross-border doctrine

n. Invoicing Requirements ,

n.1. In general

n.2. In deemed sale transactions

n.3. Consequences of issuing erroneous VAT invoice or VAT official receipt

o. Filing of return and payment

p. Withholding of final VAT on sales to government

3. Percentage Taxes(concept and nature only)

4. Excise Tax(concept and nature only)

5. Documentary Taxes (concept and nature only)

6. Tax Remedies under the NIRC