VAT invoice/receipt for VAT-exempt transactions? A20 If a VAT-registered person issues a VAT invoice or VAT official receipt for a VAT-exempt transaction, but fails to display prominently on the invoice or receipt the words "VAT-EXEMPT SALE", the transactions shall become taxable and the issuer shall be liable to pay the VAT thereon. The purchaser shall be entitled to claim an input tax credit on his purchase. Q21 Are transactions “deemed sale" on withdrawal of goods for personal use required to issue invoice for VAT purposes? A21 In the case of deemed sale on withdrawal of goods for personal use, a memo entry in the subsidiary sales journal to record withdrawal of goods for personal use is required. The data appearing in the subsidiary sales journal and the total amount of "deemed sale" shall be included in the return to be filed for the month or quarter. Q22 Can a VAT taxpayer engaged in sale of goods who usually makes sales of goods on credit issue CASH RECEIPT document for the collection of accounts receivable and other miscellaneous receipts? A22 Yes, provided the format of the CASH RECEIPT document is such that it shall not show the breakdown of the quantity, description, unit cost and total price of the goods sold. The reason for this is to prevent the recipient of this document to use it as proof for claiming input tax. Q23 Are franchise grantees of radio and television required to register as VAT taxpayer? A23 If their annual gross receipt for the preceding calendar year exceeded ten million pesos (P10,000,000.00), they are required to register within thirty (30) days after the end of the calendar year. Q24 Can taxpayers previously registered as VAT who are now not subject to VATstill use their existing VAT invoices/receipts? 24 Yes. Taxpayers previously registered as VAT may continue to issue VAT invoices and VAT official receipts for the period November 1, 2005 to December 31, 2005, in accordance with the Bureau of Internal Revenue administrative practices that existed as of December 31, 2004 provided these receipts/invoices are stamped by the word "NON-VAT registered as of November 1, 2005". Q25 Can taxpayers who were previously registered as non-VAT who are nowsubject to VATstill use their existing Non-VAT receipts/invoices? A25 Yes, non-VAT receipts/invoices may still be used by the new VAT taxpayer for the period November 1, 2005 to December 31, 2005, provided these receipts/invoices are stamped by the word "VAT registered as of November 1, 2005", Q26 What is the effect of the New VAT law on CRM/POS and other sales machines relative to the issuance of receipts? A26 Taxpayer-users who have been issued permit to use salesmachines are required to re-configure their machines in conformity with the new VAT law and have until December 31, 2005 to do so. Suppliers who have been granted accreditation are not required to apply for re-accreditation but they have the responsibility to re- configure the machines they intend to sell in conformity with the new VAT law. However the Bureau reserves the right to randomly check their compliance and if found to be non-compliant, the Bureau shall withdraw their accreditation. Sample Receipt to be generated by CRM/POS and other sales machines: SHOPPERSVILLE PROP. MAY LIM KAPUYAN TIN: 906-958-905-000 - VAT REAL ST., CARIGARA LEYTE Description Price Qty. Amount Notebooks 11.25 50 562.50 VATable Poultry Products 42.00 100 4,200.00 VAT-Exempt VaTable 562,50 VAT-Exempt Sale 4,200.00 VAT Zero-Rated Sale 0,00 Total Sale 4,762.50 vaT 56.25 ‘Amount Due 4818.75 Accreditation Number: 000-000000000-00000 Date: 11/01/2005 10:30:42 AM Invoice # 000659 THIS SERVES AS AN OFFICIAL RECEIPT Thank you and come again! Q27 What will be the basis of the Output VAT Payable if, as part of the transitory provision, the generated receipts of CRM/POS are inclusive of VAT which shall be allowed up to December 31, 2005 pending re-configuration of their systems? A27 The Output VAT Payable shall be computed by multiplying the total invoice/receipt amount by 1/11. ‘0 Technolgies Asia, nes © 2021, caaszorine.comQ28 What are the requirements to be submitted to the BIR concerned office on or before November 30, 2005 by those taxpayers becoming liable to pay VAT? A28 1. A list of inventory of goods or supplies as of October 31, 2005 showing the quantity, description and amount. 2. A list of inventory of unused invoice or receipt as of October 31, 2005. Q29 What is the rule on claims for input tax on purchases of depreciable capital goods (local/imported) if purchase amount exceeds P1M? A29 If aggregate acquisition cost of all depreciable goods acquired in a month exceeded P1M, the claims for input tax shall be spread over the life of the depreciable goods or sixty (60) months, whichever is shorter. Q30 What are the accounting requirements in the acquisition, purchase or importation of depreciable assets or capital goods? A30 A subsidiary record in ledger form shall be maintained for the acquisition, purchase or importation of depreciable assets or capital goods which shall contain, among others, information on the purchase amount, date of purchase, description of the goods, total input tax thereon as well as the monthly input tax claimed in the VAT declaration or return. Q31 How much input tax on sale of goods and services to the government or any of its political subdivisions, instrumentalities or agencies, including government-owned and controlled corporations (GOCCs) can a VAT taxpayer claim? A31 The allowable input tax for sales of goods and services to the government shall not exceed five percent (5%) of the selling price/gross receipts. If actual input tax exceeds five percent (5%) of gross payments, the excess shall form part of the seller's cost or expense. On the other hand, if actual input VAT is less than five (5%) of gross payments, the difference shall be closed to cost or expense of the seller. Illustration: Assumption No. 1: Sales P100,000.00; Output VAT 10,000.00; Purchase P90,000.00; Input VAT 9,000.00. Sales Invoice Selling Price P100,000,00 VAT 10,000.00 Total Invoice Amount P110,000.00 Balance Sheet/Income Statement: Output VAT Payable P10,000.00 Actual Input VAT P 9,000.00 Less: Standard Input VAT (5%) 5,000,00 5,000.00 Income & Expense Summary P 4,000.00 Net VAT Payable P 5,000.00