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Andrade Buss - Tax Chapter8 Input VAT
Andrade Buss - Tax Chapter8 Input VAT
BSA 2B
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.
- Manufacturing of:
REFINED sugar
Cooking oil
Packed noodle based instant meals
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.