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    78 views8 pages

    Chapter 8-Zero Rated Sales

    Uploaded by

    Quenie De la Cruz
    Tax

    Copyright:

    © All Rights Reserved
    Download as PDF or read online from Scribd
    Flag for inappropriate content
    of 8
    hoster 8—ouput VAT 2eroated Ses 1 8 Oost VAT trated Sls CHAPTER 8 nig ia Corporation ia VAT taxpayer OUTPUT VAT - ZERO-RATED SALES Db bso rated VA atl al Corporation sal pate Chapter Overview and Objectives a is rar expected to comprehen 1200 ‘Aer hs chapter, readers are expect comprehend < . 2 Retiree tna Be ree rm neta Me Foe ecfuer-rated sales of gods and zro-rated sles services anit of Ria Corporaon oes tx rena itera stable income andincone tax due asfalowss WHAT ARE ZERO-RATED SALES? arnnroted sales are basically forelgn consumpuios (Le export si read ree eats af orig consumpeons (oreig currency denon . etvat, 330000 xquivalens ie exports) and sales conferred with an export at 160.000 ne tal iws and international agresments to which the Pl 5 pa signatory earpiece Foreign consumption ike expr of goods or services nt cha Fore tae Hence te export sales of VAT taxpayers ae 8 [sp va cnn became as duction against Sense ete exper ses 2 non-VAT axpyer ae becuse ieataccredtorttreund, en nme the 38 general percentage ta i Corporation non VA oxpayer “What is the benefit of Zero-rating? apt from VAT including percentage tax. Rizal Cory srt ya th ee a re ay cone se such, te taxpayer wil lly recover th can is domestic purchases and on importation ete Y a4 Pa ony ate taxpayer wit the government ory taxrefind 7118000 ‘ero-rated sales vs. Exempt sales { 1.000, rer eet mes and prorated sales wil not have ouput VAL me FToa000 Bate ee payer des nt pay VAT. The liference es nthe 20% payer does net ay mes gra a cant its =e a ee tt rcs re ee ee marten et eae Snnieg 4 ee iat 262 263 or 8~ Output VAT: Zerovated Sales - * : ilhaaaia 8 - Output VAT Zerovated Sales summary: Table of compan, ‘ape vaT Sn aoa a Tare ipininan wns Aaa "poss income tf erin indonesia. "S10,000. Fae, me [tient oftxregp | — Pata tie ae eno-narzn sass oF 08 ca DE elec ods ae elect trove sales oe EXPORT SALES ensnpions aerate xm export sales wil only nae: paumoton ei ‘Diet ort Peta znesond orm enterprise nes i Set efor properties, supplies, equipment ond fel Sate of fee craton siping or imerraenal ecto 12% VAT even thy are conn ifthey are paid for in foreign currencies. mire Sports Tore Direct eamact [Fos desinaios FsipoD Sat FOB shipping at het ere sale and cl shipment of pods Ho the hing sit — anno cat Direct exo especie fan hpne aN [freaonge veel nngoomsst| ee es he tanstr of ownership te be, ln pe leon’ htm te Yer rom the momen the gs lave the compound seer EO Required: ai re 1. Paid for in acceptable foreign currency or its tows the VAT treatment ofthe foregoing export sales: services 2 Bata fori acorance with the rules and rept a ltnaisa ——— regi Senral ng Pipa (6?) omg aa ra a ‘exempt me imustraion a, Sonn Mey vain pode flows: seraind se ‘tomer raieeaien em tn tn a in pie Ming pes tees: pl og sans “Alipio emploeeinjapan_{ —_apat ‘Albusinessinindonesa Indonesia “The relevan conversion rates were €1: PO; $1: P52; ¥1: P.O 264 265 8- Output VAT: Zerorated Sales chapter 8 output VAT: road Sales vst tee song vA sete export aera fallow tp Ission on sales made 3.) 40000, Pama mcrae oth, i ——eE So mama me ay Se e auepeneny aaa ine reat & "50900 / 45000 60 days at mee aie ne gered Wefan = ca at Both sas jomestic consumption, they are 2270 raed for foreign cons Ridles tn Peace ~ ifn ar came aa IRR ae a. through refund or tax credit. consignments. od ee wnat yxitisa non-VAT registered NPE? any ney ht ean a eS Eo: z Bern rose sienna commission and consignment are considered technical exportation, Esper commle ing enor ss fei ry of ere me wore the ear oh hal nh oe cmd ep el ee cons fat sl bye oI Philippine Ecozones 3 Bor one tory (PEA Special Economic Zone oe Special Economie Zone Special Economie Zone report Zone ott pec Economic and Freeport one Hay Special Economic Zone Fe Special Economic Zone (ASZ) - RA 9490 a der, buys joods from hte ay, a VAT eter ert espe: Company an el he or ori cose mantra rer domestic enerpres witout 08 aie ie ocr domes sales: sowing slesand ering be uate, export Company a teflon ting of sales to registered enterprises of economic zones oF in the TRAIN lw was veted by the President thereby posal, naa Impression that locator wil then be subject to 1296 VAT. Sates ‘Commision on sales ade TRAIN ta, dd nt repeat a not repeal Section @ of RA 7916, The Special Taras competes so00 Ac which provises tat spec economie ones reo be unsl consents nooo 250000 marge 25 separate custom terry, the DOP mantaned ‘assum 0 a7 sun Nore tnan ys on the zro-rating of sles of goods or services. Accordingly, oul ear PEZA locators wil still be zre-rated until 3 contrary I of = - passe. 7 1981524 ‘ay, passing VAT to PEZA locators which are primarily heftowin sa be sett 0% VAT and 12K respective result in voluminous claim for refunds or credits casing sary worMlonds tothe BIR andthe ecozone locators ae 27 chapter 8 output VAT: Zeroratd aes ons ot and fl ld fee aye me 9 Sse ens 8 ods, supe, ext ‘Rermators sin mera ate te Pipes The sale Os consti ater than a Somes {overorated VAT ratings titedto gods. sup se wo he tat! Eds 2 ‘pies ey 2 er 2 rit any portin we Panes les seme antag pssengets an the Paro lod passengers and mystration cite Aine a suppiiesto Pa Matt pany, VAT taxpayer 1850 ‘amauu 00000 Biestic operation ‘00,000 Trerpatonl operation Fee anes onc erin he Te a of oe an eran e Rasim on z ents whose eemptin il TL pesos or nts we sitoal agreements Taw or itr ene wh cel sues seh se ot nen are granted inet nemo nl imeeaonel een 1. Asan Devore pesearen inte RD 2 men on (ON) an various ON eon eat Organization at acs (CAO) as peanne yng empoyees and dees reciprocity rule Sec. $ (0, RA 10 «Tagine Natlonal Red ross (PNR) ~ Se: 5 on. '8- Output VAT: Zero-ated Sales Fine Amusement and Gaming Corporation (PAGCOR) and is or contactors-PD 1869 ©! the indirect tax exempson, the sakes of these eniies are abject to 0% VAT, or efectivezero-rats fective zerorating of tale requires prior application withthe IK office. Without an approved application for elective sro transaction otherwise ented to 2ero-taing shall be considered 4.1065 R16 2005) ed pplication shall be given prospective eet from the date the BIR. The same shall be valld unt December 31 ofthe sume frenewable every year thereat, fle application for zero rating? all fle their application with the Audit Information, Tax and Incentives Division (AITEID) under the Assessment Serie, payers, applications shall be led withthe Large Taxpayer igiton Divisions | and Il (LTAID I and I), BIR National rocty exemption on embassies and their personnel a their qualified employees and dependents of employees do rect tax exemption under The inna Convention on Diplomatic they may be exempe under the principle of reciprocity, Feeiprocty rule, foreign governments granting Phitpine iplomats indirect tax exemption shall Hkewise be conferred iment on their embassies or diplomats in the Philippines ing ndirect tax exemption to Philippine embassies and bythe DFA (BUR Rung DA-1TAD-94-08 100-08, 10-08). ‘embassies and thir g later are issued Vat" tiation Cards (VEIO), allied personnel and qualifed Exemption Crtifcates (VEC) oF iling to foreign cinbasses personnel or their dependents sul be entitled to the benef of zero-ating (Se RO 1) ‘chapter 8 - Output VAT: Zeo-ated Sales a itytetion Matra ion, a VAT supple, sit oce supplies ant following eases her than processing, manufsturing or repacking rendered ard in snes cs sales Hee inn conducted uti the Pps uo non 400000 ervces once, business who Is ouside the Philppines Without retproty exemption iain sy Uieane Ente) in reaproaeempuon S008 Tort Hi.aun.o0a Bat serve ite on re #40000 sae Jegincerng snd arcivecturt dese he es “Te 0 oes i subject 0 erated VAT. The PAO0000 ehecring and architectural designs The term ennpaser My asses Ta VAT PREVIOUSLY ZERO-RATEDSALES Pore currency denominated sl 5 SSlestnder the foteral export progr” & Sates to Boy Scot ofthe Philippines” Fas ao BSP —mowrexemp effective ancary 1, 2018 od iglemematin fr 2e0-aing of sevices to nowt mst be performed nthe Philippines = must be paid for 4 In acceptable foreign cu ods or services, able foreign currency ot ts at must be account fed or under the rales and regulations of tapemieent 123A po ces comin Tiana VAT tay gn cry somite salt eis 0 arr ene ns ot Hifotowigrecins um scvingse ins ect eo a ods cen a pines order toaresdenin he PO er ace Simei he ss eat gee . Pine al erm Bic rw on nee, pos rc darted codecs wh Mi subiect o serrd Vat. To rep oe Pee AE

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