Value Added Tax Andrade, Celwyn Bonn S.

BSA 2B

Presumptive Input Tax of 4% on Sale of Goods

A presumptive input tax is allowed for persons or firms that are engaged in the
processing of sardines, mackerel and milk and in manufacturing refined sugar
cooking oil and packed noodle-based instant meals, creditable against the output tax
equivalent to four percent of the value in money of their purchases of primary
agricultural products which are used as inputs to their production.
The term processing shall mean pasteurization, canning and activities which
through physical or chemical process after the exterior texture or form or inner
substance of a product in such manner as to prepare it for special use to which it
could not have been put in its original form or condition.

Entitled to Presumptive vat: Persons or firms engaged in the

- Processing of:
Sardines
Mackerel
Milk

- Manufacturing of:
REFINED sugar
Cooking oil
Packed noodle based instant meals

Transitional Input Tax

Person who become liable to VAT or any person who elects to be VAT-
registered person shall, subject to the filing of an inventory according to rules and
regulations prescribed by the secretary of finance, upon recommendation of the
Commissioner, be allowed input tax on his beginning inventory of goods, materials
and supplies equivalent to two percent (2%) of the value of such inventory or the
actual VAT paid on such goods, materials and supplies, whichever is higher, which
shall be creditable against the output tax.

TAXPAYERS WHO CAN AVAIL TRANSITIONAL INPUT VAT

a) Taxpayers who becomes liable to vat
b) Taxpayers who elects to be vat registered