REGULAR OUTPUT VAT

TAX TRANSACTIONS TAX BASIS

1. Sale of goods gross selling price, unless unreasonably lower than fair market value
2. Sale of services gross receipts
3. sale of properties gross selling price as defined by BIR
4. Transactions deemed sales fair market value of the property deemed sold

Gross selling price - total amount of money or its equivalent which the purchaser pays or
is obligated to the seller in consideration of the sale, barter or exchange of goods or properties.
The excise tax, if any, on such goods or properties shall form part of the gross selling price. VAT
however, shall not be considered as part of the gross selling price.

ALLOWABLE DEDUCTION FROM THE GROSS SELLING PRICE

1. Discounts determined and granted at the time of sale, which are expressly indicated in the
invoice, the amount thereof forming part of the gross sales and are duly recorded in the
books of accounts.

2. Sales returns and allowance for which a proper credit or refund was made during the month
or quarter to the buyer on taxable sales.
SALE OF GOODS
Ex. Cash sales, P400,000 Installment sales (P30,000 collected), P100,000
Sales on account, P600,000 Sales returns and allowances, P20,000
Quota discounts, P20,000 Purchase of goods VAT included, P72,000

compute for the gross selling price

VAT excluded VAT included
Cash sales 400,000.00 357,142.86
Sales on account 600,000.00 535,714.29
Installments Sales 100,000.00 89,285.71
total 1,100,000.00 982,142.86
less: sales returns and allowances 20,000.00 17,857.14
Gross selling price 1,080,000.00 964,285.71

If the selling price is unreasonably lower, the VAT shall be based on the fair value of the
goods sold. The gross selling price is deemed unreasonably lower when it is lower by more than
30% of the actual market value of the goods sold.

Timing of Output VAT: reported in the month of sale (cash sale or sales on account) sale of goods:

Gross receipts - refer to the total amount of money or its equivalent representing the
contract price, compensation, service fee, rental or royalty, including the amount charged
for materials supplied with the services and deposits applied as payments for services
rendered and advanced payments actually or constructively received during the taxable
period for the services performed for another person, excluding VAT.
SALE OF SERVICES - CASH BASIS OF ACCOUNTING SHALL BE EMPLOYED
Ex.
Cash collection for services done, P400,000 VAT
Cash collection for services not yet started (advances), P100,000 VAT
Receivables on services rendered, P600,000 NOT SUBJECT TO VAT - THERE IS
Purchases of goods and services, VAT included, P448,000 INPUT TAX

Compute for the gross receipts.

vat excluded
Cash collection for services done, 400,000.00
Cash collection for services not yet started 100,000.00
Gross receipts 500,000.00
 Timing of output VAT: reported in the month of collection sale of services:

SALE OF VATABLE PROPERTIES

Gross selling price means consideration received or fair market value of the property sold, whichever is higher

For sale of real property, fair market value is the higher amount between the zonal value
of BIR and market value of the assessor (City or Provincial Assessor)

If the VAT is not separately shown in the receipts, the amount stated in the receipts is deemed to be VAT inclusive (sale
If the fair market value is higher than the selling price, the sale is deemed to be VAT exclusive (sale of properties)
Ex. Appraisal value, P4,500,000 Assessor's fair market value, P2,500,000 FMV = assessor's market value o
Zonal value of BIR, P4,000,000 Selling price, P3,800,000 EX. 2 Appraised value, P4,50
FMV (Assessor)- 4,000,000
Compute for Output VAT

Gross selling price 4,000,000.00 (VAT Exclusive)

Multiply: tax rate 12%
Output VAT 480,000.00

Note: it must be noted that the term "selling price" or consideration on the sale of property
is legally presumed VAT inclusive but this is not the case on the sale of goods.

Timing of Output VAT reporting: reported in the month of sale or by installment method.

Installment reporting of output VAT on real properties start 12/8/2021

The output VAT on the sale of real properties may be reported in installment if the initial
payment from such sale does not exceed 25% of the selling price.

If the initial payments exceeds 25% of the selling price, the Output VAT must be recognized
in the month of sale.

Sale of real property held as ordinary asset is subject to VAT.

Transactions deemed sale

Not sale of goods but subject to VAT
1. Transfer, use, or consumption not in the course of business of goods or properties
originally intended for sale or use in the course of trade or business.
Ex. A VAT-registered grocery operator withdrew the following for personal use:
Fruits and vegetables with fair value of P10,000 and book value of P16,000
Processed goods with fair value of P18,000 and book value of P15,000.

Output VAT (18,000x12%) 21,600.00

Note: fruits and vegetables are VAT exempt. For transactions deemed sale, the tax base
is the fair market value.

2. Distribution or transfer to:

A. Shareholders or investors share in the profits of VAT-registered persons
B. Creditors in payment of obligations
3. Consignment of goods if actual sale is not made within 60 days following the date such
goods were consigned.
Ex. Sales - own inventory, P500,000
Sales - reported by the consignees, P150,000

The billed prices of outstanding consignments still held by consignees as of Apr. 30, 2020
Feb. 2020,P50,000
Mar. 2020, P80,000
 Apr. 2020, P120,000

Compute for the output VAT for the month of April 2020

Sales 500,000.00
Sales - reported by the consignees 150,000.00
Transaction deemed sale (Feb. Consignment) 50,000.00 unsold by the consignee for mor
Total 700,000.00
Multiply: Tax Rate 12%
Output VAT 84,000.00

4. Retirement from or cessation of business with respect to all goods on hand whether
capital goods, stock in trade, supplies or materials as of the date of cessation, whether or not the
business is continued by the new owner or successor.
Ex. Mr. AA, a VAT-registered taxpayer, ceased business operation in May 2020. His business
properties upon termination of business operation include:
Cash, P50,000 Inventories, P200,000
Accounts Receivable, P120,000 Property and Equipment, P800,000
Investments, P180,000
compute for the output VAT.

Inventories 200,000.00
Property and Equipment 800,000.00
total 1,000,000.00
multiply: tax rate 12%
Output Vat 120,000.00

5. Cessation of status as a VAT-registered person.

n fair market value

sale of goods - the taxpayer shall observe accrual basis of accounting

(400,000/112%)
(600,000/112%)
(100,000/112%)

(20,000/112%)

accrual basis of accounting

UBJECT TO VAT - THERE IS NO RECEIPT OF CASH

 cash basis of acccounting

hichever is higher

d to be VAT inclusive (sale of goods or services)

(sale of properties)
= assessor's market value or zonal value of bir, whichever is higher.
Appraised value, P4,500,00 Zonal Value (BIR), P4,200,000 Tax base on sale of real property: selling price, market value o
Assessor)- 4,000,000 Selling Price 4,500,000

Gross Selling Price 4,017,857.14 (4,500,000/112%)

Multiply: Tax Rate 12%
Output Tax 482,142.86

Initial payment - downpayment + periodic payment in the YEAR OF SALE

Selling price (VAT exclusive) 1,000,000.00
Downpayment (Oct. 15, 2020) 100,000.00 VAT exclusive
Monthly Payment (Nov. 15, 2020) 50,000.00 VAT exclusive

INITIAL PAYMENT (100,000+100,000) 200,000.00 VAT EXCLUSIVE

1,000,000.00
Ratio 0.20 VAT can be paid in installment

Selling price (VAT exclusive) 1,000,000.00 VAT exclusive

Downpayment (Oct. 15, 2020) 200,000.00 VAT exclusive
Monthly Payment (Nov. 15, 2020) 50,000.00 VAT exclusive

INITIAL PAYMENT (200,000+100,000 300,000.00 VAT EXCLUSIVE

Divide: selling price 1,000,000.00
Ratio 0.30 VAT cannot be paid in installment
d by the consignee for more than 60 days
lling price, market value of the assessor or zonal value of BIR, whichever is the highest.
ZERO RATED TRANSACTIONS

ZERO rated sales are usually for foreign consumptions and sales in the Philippines with an
export sale treatment by special laws and international agreements to which the Philippine
government is a signatory.

Benefit of zero-rating
Exempt transactions and zero-rated transactions will yield no output VAT. The difference
is on the treatment of input VAT. In exempt transactions, whatever input VAT the seller pays
for the purchases of goods or services from a VAT registered supplier is not refundable or
creditable. In zero-rated transactions, whatever input VAT the seller pays for the purchases of
goods or services from a VAT registered supplier is refundable or creditable.

Ex.
During the month, AA Corporation purchased goods invoiced at P350,000 excluding
P42,000 input tax. It exported the goods for $10,000 which is equivalent to P500,000 and incurred
P10,000 in expenses.
Assuming that AA Corporation is a VAT registered taxpayer, how much is the VAT payable?

Output Vat -
Less: Input VAT 42,000.00
VAT Payable (overpayment) - 42,000.00

Note: The P42,000 Input VAT can be claimed as tax refund or deducted from other internal
revenue taxes provided the application for tax refund or tax credit shall be made within two
years from the close of the taxable quarter in which the zero rated transaction has been consummated.

Ex.
During the month, AA Corporation purchased goods invoiced at P350,000 excluding
P42,000 input tax. It exported the goods for $10,000 which is equivalent to P500,000 and incurred
P10,000 in expenses.
Assuming that AA Corporation is a non-VAT registered taxpayer, how much is the VAT payable?
Exempt from of VAT
Output Vat - Output tax
Less: Input VAT - Less: Input tax
VAT Payable - VAT Payable

Note: the entire cost of purchase of goods equivalent to P392,000 (P350,000+42,000) shall be deducted from
income tax.

ZERO RATED SALE OF GOODS

A. Export Sales
B. Effectively zero-rated sales

EXPORT SALES
Eventually, the term export sales will only include:
1. Direct export
2. Sale to economic zones and tourism enterprises zones.
3. Sale of goods or properties, supplies, equipment and fuel to persons engaged in international
shipping or international air transport operations.

DIRECT EXPORT
Direct export is the sale and actual shipment of goods from the Philippines to a foreign country,
irrespective of any shipping arrangement that influences or determines the transfer of ownership
of the goods so exported.

Requisites:
1. Paid for in acceptable foreign currency or its equivalent in goods or services
 2. Accounted for in accordance with the rules and regulations of the Bangko Sentral ng
Pilipinas

Customer/Buyer Place delivered Payment

Resident Alien Philippines $15,000 12% VAT

Visting Tourist Philippines P400,000 12% VAT
A Filipino employee in Japan Japan $20,0000 0% VAT Direct export
A business in Malaysia Malaysia $10,000 0% VAT Direct export
Conversion rate: P50:1$
How much is the total zero rated transactions

A Filipino employee in Japan Japan 1,000,000.00 (20000x50)

A business in Malaysia Malaysia 500,000.00 (10000x50)
Total zero-rated transactions 1,500,000.00

Assuming that the seller in the foregoing example is a non-VAT registered, how much is the
zero rated transactions?

Answer: None. Because the taxpayer is not subject to VAT.

SALE TO ECONOMIC ZONES OR TOURISM ZONES.

Subject to 0% VAT because it is considered technical exportation.
Examples of Philippine Economic Zones:
1. Philippine Economic Zone Authority
2. Cagayan Special Economic Zone
3. Zamboanga Special Economic Zone
4. Clark Special Economic Zone
5. Clark Freeport Zone
6. Poro Point Special Economic and Freeport Zone
7. John Hay Special Economic Zone
8. Aurora Special Economic Zone

Note: The provision of the TRAIN Law on sale to ecozones subjecting it to 0% VAT is vetoed by
the president but the TRAIN Law did not repeal RA 7916, The Special Economic Zone Act.
Thus, subjecting the sales to ecozones to 0% VAT.

SALE OF GOODS, SUPPLIES, EQUIPMENT AND FUEL TO PERSON ENGAGED IN INTERNATIONAL

SHIPPING OR INTERNATIONAL AIR TRANSPORT OPERATIONS.

Ex. AA Company, a VAT taxpayer, sold supplies to BB Airlines, an airline which is engaged in
air transport operations. Below is the breakdown of the sale:

Domestic operation, P400,000 12% VAT

International operation, P500,000

How much is the amount to be subjected to 0% VAT?

International operation 500,000.00

EFFECTIVELY ZERO-RATED SALES

Sale to the following entities are granted 0% under special laws:
1. Asian Development Bank
2. International Rice Research Institute
3. United Nation and its various organizations, such as:
 A. World Health Organization B. UNICEF
4. United States Agency for International Development (USAID) and its personnel and contractors
5. Embassies, qualified employees and dependents - subject to the reciprocity rule
6. Philippine National Red Cross
7. Philippine Amusement and Gaming Corporation and its liscensees or contractors

Requirement for effective zero-rating

There must be application for zero rating with the appropriate BIR office. Without this
approval from the BIR, the sale shall be exempted from VAT. The validity of such zero rating shall
commence on the day the letter is received by BIR and valid until Dec. 31 of the year. It is
renewable every year.

Where to file application for zero rating?

Taxpayers shall file their application with the Audit Information, Tax Exemption and
Incentives Division (AITEID) under the Assessment Service.

PREVIOUSLY ZERO-RATED SALES

1. Foreign currency denominated sales - now subject to 12% VAT
2. Sales under the internal export program - now subject to 12% VAT
3. Sales to Boy Scouts of the Philippines - now subject to 12% VAT
4. Sale of gold to BSP - now exempt from VAT

ZERO RATED SALES OF SERVICES

1. Sale of services to non-residents
2. Effectively zero rated sales of services
3. Services rendered to persons engaged in international shipping or intenational air transport
operations including leases of properties thereof
4. Transport of passengers and cargoes by DOMESTIC air and sea carriers from the Philippines to
a foreign country
5. Sale of power or fuel generated from RENEWABLE sources or energy
Ex. AA Electric, a generation company has the following receipts during the month:
Sale of electricity generated from hydro plant, P20,000,000 0% VAT
Sale of electricity generated from solar plant, P30,000,000 0% VAT
Sale of electricity generated from coal-powered plant, P40,000,000 12% VAT
Sale of electricity generated from natural gas power plant, P10,000,000 12% VAT

Compute for the sale of electricity subject to 0% VAT

Sale of electricity generated from hydro plant, P20,000,000 20,000,000.00

Sale of electricity generated from solar plant, P30,000,000 30,000,000.00
Total zero-rated sale 50,000,000.00

6. Services rendered to ecozones or tourism enterprises zones.

Enhance VAT Refund System

The Department of Finance shall establish a VAT refund system center in the BIR and
in the BOC that will handle the processing and granting of the cash refunds of creditable input
VAT within 90 days.
5% of the total VAT collections of the BOC and the BIR from immediately preceeding
year shall be appropriated for the payment of tax refund.

ZERO RATED SALES TO BE SUBJECTED TO 12% VAT UPON ESTABLISHMENT OF AN ENHANCED

VAT REFUND SYSTEM
The following shall be subject to 0% VAT pending the establishment of ENHANCED
VAT REFUND SYSTEM
1. Sale of raw materials or packaging materials to a non-resident buyer for delivery to a resident
 export-oriented enterprise to be used in manufacturing, processing, packing or repacking, in
the Philippines of the said buyer's goods and paid for in acceptable foreign currency and
accounted for in accordance with the rules and regulations of the BSP.

2. Sale of raw materials or packaging materials to an export oriented enterprise whose export
sales exceeds 70% of total annual productions.

3. Those considered export sales under EO 226 (The Omnibus Investment Code of 1987) and
other special laws.
A. The Philippine F.O.B. value of export products exported directly by an export producer.
B. The net selling price of export products sold by a registered export producer to another
export producer
C. The net selling price of export products sold by a registered export producer to an export
trader that subsequently exports the same.
D. Even without actual exportation, the following shall be considered constructively
exported:
1. Sales to bonded manufacturing warehouses of export-oriented enterprises
2. Sales to export processing zones in pursuant to RA 7916, 7903, 7922 and other
similar export processing zones.
3. Sales to enterprises duly registered and accredited with the Subic Bay Metropolitan
Authority (RA 7227)
4. Sales to registered export traders operating bonded manufacturing warehouses
supplying raw materials in the manufacture of export products.
5. Sales to diplomatic missions and other agencies and or instrumentalities granted
tax immunities, or locally manufactured, assembled and repacked products whether
or not paid for in foreign currencies.
6. Sale of goods, properties or services to a BOI-registered manufacturer or producer
 Subject to VAT (Zero rated)
Output tax 0.00
Less: Input tax 42,000.00
VAT Payable (42,000) can be claimed as tax refund or tax credit

be deducted from
Direct export
Direct export
INPUT VAT

What is input VAT?

Refers to VAT due or paid by a VAT-registered person on importation or local purchases of
goods, properties, or services, including lease or use of properties from a VAT-registered seller in the course of his trade
or business.

Determination of Input VAT

The VAT on purchase is usually reflected as a separate item in the VAT invoice or VAT
official receipt issued by the VAT-registered supplier. If the VAT is not billed separately,
the selling price is deemed to be VAT inclusive.

Requisites of a creditable VAT input

1. The input VAT must have been paid or incurred in the course of trade or business.
2. The input Vat is evidenced by a VAT invoice or official receipt.
3. The VAT invoice or receipt must be issued by a VAT-registered person.
4. Input VAT is incurred in relation to vatable sales and not from exempt sales.

Ex. Mr. AA had a P230,000 output VAT in the month. The following purchases were made
during the month:
Goods from non-VAT suppliers, P300,000 not claimable for input tax purposes
Goods from VAT suppliers with VAT invoices, P224,000 claimable for input tax purposes
Importation of car for personal use, VAT inclusive, P1,120,000 not claimable for input tax purposes
Importation of fruits for sale, P300,000 VAT exempt - no input tax can be claime
Importation of merchandise for sale, VAT inclusive, P896,000 claimable for input tax purposes
Services from VAT suppliers, evidenced by receipts not registered with BIR, P120,000.

What is the total amount of claimable input tax?

Goods from VAT suppliers with VAT invoices (224,000/1.12)x0.12
Importation of merchandise for sale, VAT inclusive (896,000/1.12)x0.12
Input tax

What is the VAT Payable

Output tax
Less: Input tax
VAT Payable

TYPES OF INPUT VAT

1. Transitional input VAT
2. Regular input VAT
3. Amortization of deferred Input VAT
4. Presumptive input VAT
5. Standard Input VAT
6. Input Tax Carry-over

TRANSITIONAL INPUT TAX

A person who becomes liable to VAT or any person who elects to be a VAT registered person
shall be given an initial input tax credit equivalent to 2% of the beginning inventory of goods,
materials, or supplies or the actual VAT paid thereon, whichever is higher.

Ex. Mr. AA becomes liable to VAT after exceeding the VAT threshold of P3,000,000 in Jan. 2020.
As of Dec. 31, 2019, the following data are made available:
VAT-exempt goods, P20,000 not includible in the computation of transitional input V
Vatable goods:
from non-VAT sellers, P60,000 includible VAtable goods
from VAT sellers, P11,200 includible VAtable goods
Equipment from VAT seller, P1,120,000 not includible in the computation of transitional input V
Compute for the transitional input tax
 from non-VAT sellers,
from VAT sellers (11,200/1.12)
Total
Multiply: Rate
2% of the beginning inventory

Actual VAT (11,200/1.12)x.12

2% of the beginning inventory is higher than the actual VAT paid thereon. Transitional
input VAT therefore, is P1,400.

Timing of Credit of transitional input VAT: month of registration as a VAT taxpayer

Requisites for claim of transitional input VAT

1. The taxpayer must submit an inventory list of goods
2. The taxpayer must prepare an entry recognizing the transitional input VAT credit in his
accounting books.

REGULAR VAT
Sources of Regular Input VAT Timing of credit
1. Purchase of goods or properties month of purchase
2. Purchase of services month of purchase
3. Importation of goods month VAT is paid
4. Purchase of depreciable capital asset or properties
General treatment month of purchase
when the monthly aggregate acquisition cost exceeds
P1,000,000 amortized over life of the asset
or 60 months, whichever is
shorter
5. Purchase of non-depreciable vehicles and on maintenance
incurred thereon Not creditable

INPUT VAT on purchase of capital goods or properties

If the monthly aggregate acquisition cost of depreciable capital goods does not exceed
P1,000,000 - input VAT is claimable in the month of purchase
If the monthly aggregate acquisition cost of depreciable capital goods exceeds P1,000,000 -
input VAT is spread over the useful life of the asset or 60 month whichever is shorter.

Ex. AA Enterprises, a VAT registered business purchased the following capital goods for
March 2020:
Useful Life Purchase Price (VAT exclusive)
Equipment 4 years 48 mos. 600,000.00
Truck 10 years 120 mos 700,000.00
Aggregate purchase of capital goods 1,300,000.00
Compute for the input tax in March 2020:
Input tax claimable in March
Equipment (72,000/48) 1,500.00
Truck (84,000/60) 1,400.00
Total input tax claimable March 2020 (purchase of capital goods 2,900.00

Ex. AA Enterprises, a VAT registered business purchased the following capital goods for
March 2020:
Useful Life Purchase Price (VAT exclusive)
Equipment 4 years 600,000.00
Computer 10 years 250,000.00
Aggregate purchase of capital goods 850,000.00
Compute for the input tax in March 2020:
Input tax claimable in March
Equipment 72,000.00
Computer 30,000.00
Total input tax claimable March 2020 102,000.00

Sale or transfer of depreciable capital goods within 5 years prior to the exhaustion of the
amortizable input tax thereon, the entire unamortized input tax (deferred input tax) on
the capital goods sold/transferred can be claimed as input tax credit during the calendar
month or quarter when the sale or transfer was made.

Scheduled phase-out of the amortization treatment

Under the TRAIn law, the amortization treatment of deferred input Vat will be stopped
effective Jan. 1, 2022. Previously recognized derred input vAT will continue to be
amortized even after that date but the deferred treatment will be stopped. Input VAT
on capital goods will be claimed outright in the month of purchase effective Jan. 1, 2022.

PRESUMPTIVE INPUT TAX

Persons or firms engaged in the processing of SARDINES, MACKEREL AND MILK and in the
manufacturing of REFINED SUGAR, COOKING OIL AND PACKED NOODLE BASED INSTANT
MEALS, shall be allowed a presumptive input tax equivalent to 4% of the gross value in
money of their purchases of PRIMARY AGRICULTURAL PRODUCTS which are used in their
production

Ex. AA Corporation is a VAT registered taxpayer and engaged in manufacturing of sardines. During the month, it
purchased the following ingredients for the processing of the sardines:
Cost Input VAT
Fresh sardines 800,000.00 -
Hot chili 50,000.00 -
Tomatoes 400,000.00 -
Ordinary salt 20,000.00 -
Tin cans 120,000.00 14,400.00
Labels 60,000.00 7,200.00

Compute for the presumptive input tax

Hot chili 50,000.00

Tomatoes 400,000.00
Ordinary salt 20,000.00
Total 470,000.00
multiply: rate 4%
presumptive input tax 18,800.00

Note: under Revenue Regulations #16-2005, ordinary salt is an agricutural product.

Fresh sardines are not agricultural products.
STANDARD INPUT VAT - no longer exists starting Jan. 1, 2021 (starting Jan. 1, 2021 - 5% government money payment sha
Sale of goods or services to the government or any of its political subdivisions, instrumentalities or
agencies, including government-owned and controlled corporations is subject to 5% final
withholding tax VAT based on the gross payments. The 5% withholding on VAT is deemed
final and only the 7% of sales as input VAT. This is standard input VAT.

Ex. AA Corporation sold goods to the City of Bacolod worth P100,000 invoiced at P112,000
VAT inclusive. AA Corporation purchased the same for P90,000 exclusive of P10,800 VAT.

What is the VAT Payable?

Output VAT (112,000/1.12)X.12 12,000.00 12%
Less: 7% Standard input VAT ((112,000/1.12)x7%) 7,000.00 7%
Excess output tax over standard input tax (equal to 5% Final VAT 5,000.00 5%
Less: 5% final VAT 5,000.00 VAT Payable
What happens to the difference of the actual input VAT on sale to government and the
7% standard input tax?
The difference between 10,800 and 7,000 is closed to expense account.

What is the obligation of government agencies, GOCC or any of its political subdivision
if the supplier is a non-VAT registered taxpayer?
Deduct 3% (now 1%)creditable percentage tax

Beginning Jan. 1, 2021, the final VAT system will be abolished and will be replaced by a
creditable VAT system.

Input tax Carry Over

Rules on input tax carry over
1. The input VAT carry over of the prior quarter is deductible in the first month of the current
quarter.
2. The input VAT carry-over in the first month of the quarter is deductible in the second
month of the quarter
3. The input VAT carry over in the second month of the quarter is not deductible to the
3rd month of the quarter.
4. The input Vat carry-over of the prior quarter is deductible in the third month quarterly
balance of the present quarter.

VAT returns
1. Form 2550M used in the first 2 months of the quarter 20th day following the close of the mon
2. Form 2550Q used in the 3rd month of the quarter 25th day following the close of the quar
d seller in the course of his trade

mable for input tax purposes (purchased from non-VAT suppliers)

ble for input tax purposes
mable for input tax purposes (car is used for personal purposes)
empt - no input tax can be claimed (importation of agricultural food products is VAT exempt)
ble for input tax purposes
not claimable for input tax purposes - receipts are not registered with BIR

24,000.00
96,000.00
120,000.00

230,000.00
120,000.00
110,000.00

mputation of transitional input VAT - VAT exempt goods

mputation of transitional input VAT - only inventory of goods, materials and supplies are to be included.
 60,000.00
10,000.00 VAT exclusive
70,000.00
2%
1,400.00

1,200.00

on. Transitional

Timing of credit
of purchase
of purchase

of purchase

zed over life of the asset

months, whichever is

GSP input vat

furniture and fixtures 560,000.00 500,000.00 60,000.00
equipment 280,000.00 250,000.00 30,000.00
aggreagte acquisition cost 750,000.00 90,000.00

GSP input vat

furniture and fixtures 280,000.00 250,000.00 30,000.00
equipment 880,000.00 785,714.29 94,285.71
Input Tax aggreagte acquisition cost 1,035,714.29 124,285.71
72,000.00
84,000.00

April May
1,500.00 1,500.00
1,400.00 1,400.00
2,900.00 2,900.00

Input Tax
72,000.00
30,000.00
 102,000.00 Note: 1,000,000 aggregate value of purchase of capital goods must exclude VAT

nes. During the month, it

VAT exempt
VAT exempt
VAT exempt
VAT exempt
12% VAT
12% VAT

government money payment shall be treated as creditable VAT

 0

3,800 add expense account

ay following the close of the month

ay following the close of the quarter