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Description Who Are Required To File VAT Returns Monthly VAT Declarations Quarterly Value-Added Tax Return Tax Rates Related Revenue Issuances Codal Reference Frequently Asked Questions
Description Value-Added Tax is a form of sales tax. It is a tax on consumption levied on the sale, barter, exchange or lease of goods or properties and services in the Philippines and on importation of goods into the Philippines. It is an indirect tax, which may be shifted or passed on to the buyer, transferee or lessee of goods, properties or services.
Who Are Required To File VAT Returns
Any person or entity who, in the course of his trade or business, sells, barters, exchanges, leases goods or properties and renders services subject to VAT, if the aggregate amount of actual gross sales or receipts exceed One Million Five Hundred Thousand Pesos (P1,500,000.00). A person required to register as VAT taxpayer but failed to register Any person, whether or not made in the course of his trade or business, who imports goods
Monthly VAT Declarations Tax Form BIR Form 2550 M - Monthly Value-Added Tax Declaration (February 2007 ENCS) Documentary Requirements 1. Duly issued Certificate of Creditable VAT Withheld at Source (BIR Form No. 2307), if applicable 2. Summary Alphalist of Withholding Agents of Income Payments Subjected to Withholding Tax At Source (SAWT), if applicable 3. Duly approved Tax Debit Memo, if applicable 4. Duly approved Tax Credit Certificate, if applicable
5. Authorization letter, if return is filed by authorized representative. Procedures 1. Fill-up BIR Form No. 2550 M in triplicate copies (two copies for the BIR and one copy for the taxpayer) 2. If there is payment: · File the Monthly VAT declaration, together with the required attachments, and pay the VAT due thereon with any Authorized Agent Bank (AAB) under the jurisdiction of the Revenue District Office (RDO)/Large Taxpayers District Office (LTDO) where the taxpayer (head office of the business establishment) is registered or required to be registered. ·The taxpayer must accomplish and submit BIR-prescribed deposit slip, which the bank teller shall machine validate as evidence that payment was received by the AAB. The AAB receiving the tax return shall stamp mark the word "Received" on the return and machine validate the return as proof of filing the return and payment of the tax. · In places where there are no duly accredited agent banks, file the Monthly VAT declaration, together with the required attachments and pay the VAT due with the Revenue Collection Officer (RCO) or duly authorized Treasurer of the Municipality where such taxpayer (head office of the business establishment) is registered or required to be registered. · The RCO or duly authorized Municipal/City Treasurer shall issue a Revenue Official Receipt upon payment of the tax. 3. If there is no payment: · File the Monthly VAT Declaration, together with the required attachments with the RDO/LTDO/Large Taxpayers Assistance Division, Collection Agent or duly authorized Municipal/ City Treasurer of Municipality/City where the taxpayer (head office of the business establishment) is registered or required to be registered. Deadline · Manual Filing Not later than the 20th day following the end of each month · Through Electronic Filing and Payment System (eFPS): Business Industry Group A Insurance and Pension Funding Period for filing Monthly VAT Declarations 25 days following the end of the month
Precision. Optical Instruments Manufacture of Motor Vehicles.E. Maintenance. Sale of Automotive Fuel Collection. Steam & Hot Water Supply
24 days following the end of the month
23 days following the end of the month
22 days following the end of the month
. Trailer & Semi-Trailers Manufacture of Office. Gas.E. Products & Beverages Manufacture of Machinery & Equipment NEC Manufacture of Medical. Metallic Ore Mining Non-Metallic Mining & Quarrying Group C Retail Sale Wholesale Trade and Commission Trade Sale.Activities Auxiliary to Financial Intermediation Construction Water Transport Hotels and Restaurants Land Transport Group B Manufacture and Repair of Furniture Manufacture of Basic Metals Manufacture of Chemicals and Chemical Products Manufacture of Coke. Accounting & Computing Machinery Manufacture of Other Non-Metallic Mineral Products Manufacture of Other Transport Equipment Manufacture of Other Wearing Apparel Manufacture of Paper and Paper Products Manufacture of Radio.C. Manufacture of Fabricated Metal Products Manufacture of Food.C. Purification and Distribution of Water Computer and Related Activities Real Estate Activities Group D Air Transport Electricity. TV & Communication Equipment/ Apparatus Manufacture of Rubber & Plastic Products Manufacture of Textiles Manufacture of Tobacco Products Manufacture of Wood & Wood Products Manufacturing N. Repair of Motor Vehicle. Refined Petroleum & Fuel Products Manufacture of Electrical Machinery & Apparatus N.
Duly approved Tax Credit Certificate. Health and Social Work Public Admin & Defense Compulsory Social Security Research and Development Agricultural. Fill-up BIR Form 2550 Q in triplicate copies (two copies for the BIR and one copy for the taxpayer) 2. Printing & Reproduction of Recorded Media Recreational. if applicable 2. Cultural & Sporting Activities Recycling Renting of Goods & Equipment Supporting & Auxiliary Transport Services Group E Activities of Membership Organizations. 2550Q . If there is payment:
. Summary Alphalist of Withholding Agents of Income Payments Subjected to Withholding Tax At Source (SAWT).Postal & Telecommunications Publishing. Duly issued Certificate of Creditable VAT Withheld at Source (BIR Form 2307). Inc. if applicable 5. Duly approved Tax Debit Memo.Quarterly Value-Added Tax Return (February 2007 ENCS) Attachments to the Return 1. if return is filed by authorized representative Procedures 1. Hunting. if applicable 4. Authorization letter. and Forestry Farming of Animals Fishing Other Service Activities Miscellaneous Business Activities Unclassified
21 days following the end of the month
Quarterly Value-Added Tax Return Tax Form BIR Form No. Previously filed return and proof of payment. if applicable 3. for amended return 6.
Reminders: 1. 2. Within thirty (30) days following the close of taxable quarter (for taxpayers under the jurisdiction of the LTS and those enrolled under eFPS)
Tax Rates · On sale of goods and properties .· File the Quarterly VAT Return.114-3(g) of RR No.prescribed deposit slip. The Quarterly List of Sales and Purchases shall be submitted through electronic filing facility for taxpayers under the jurisdiction of the Large Taxpayers Service (LTS) and those enrolled under the eFPS. 3. The AAB receiving the tax return shall stamp mark the word "Received" on the return and machine validate that return as proof of filing the return and payment of the tax. 3. which the bank teller shall machine validate as evidence that payment was received by the AAB. Collection Agent or duly authorized Municipal/City Treasurer of Municipality/City where the taxpayer (head office of the business establishment) is registered or required to be registered. together with the required attachments with the RDO/LTDO/Large Taxpayers Assistance Division. The taxpayer must accomplish and submit BIR. The RCO or duly authorized Municipal/City Treasurer shall issue a Revenue Official Receipt upon payment of the tax.twelve percent (12%) of the gross selling price or gross value in money of the goods or properties sold. bartered or exchanged
. The Quarterly List of Sales and Purchases shall be submitted in magnetic form using 3. If there is no payment: · File the Quarterly VAT Return. file the Quarterly VAT Return.5-inch floppy diskette following the format provided under Section 4. Deadline Within twenty five (25) days following the close of taxable quarter (for manual filing). Only one consolidated Monthly VAT Declaration/Quarterly VAT Return shall be filed covering the results of operation of the head office as well as the branches for all lines of business subject to VAT. 16-2005. · In places where there are no duly accredited agent banks. together with the required attachments. together with the required attachments and pay the VAT due with the Revenue Collection Officer (RCO) or duly authorized Treasurer of the Municipality where such taxpayer (head office of the business establishment) is registered or required to be registered. and pay the VAT due thereon with any AAB under the jurisdiction of the RDO/LTDO where the taxpayer (head office of the business establishment) is registered or required to be registered.
if any. plus customs duties. if any. 16-2005. Implementing Sec. 4-2007
RR No. Amending and/or Revoking All Revenue Issuances Issued to this Effect. Otherwise Known as the Consolidated Value-Added Tax Regulations of 2005 Amending Certain Provisions of RR No. and for Other Related Purposes Prescribing the Rules on the Advance Payment of Value-Added Tax/Percentage Tax on the Transport of Naturally Grown Planted Timber Products Suspension of the Implementation of Revenue Regulations No. As Amended. and other charges. and for Other Related Purposes Amending Certain Provisions of RR No. the VAT shall be based on the landed cost plus excise taxes.2007
RR No. that where the customs duties are determined on the basis of quantity or volume of the goods. provided. excise taxes.0%
Related Revenue Issuances Revenue Regulations (RRs) SUBJECT Consolidated Regulations on Advance Value-Added Tax on the Sale of Refined Sugar. As Amended. · On export sales and other zero-rated sales . 13 . Amending and/or Revoking all Revenue Issuances Issued to this Effect. 11-2007 RR No. 2-2007
RR 16-2005 RR 7-2004
RR 4-2004 RR 2-2004
.twelve percent (12%) of gross receipts derived from the sale or exchange of services. Supplementing the Rules on the Advance Payment of Value-Added Tax on Sale of Refined Sugar as Provided for in RR 2-2004. Otherwise Known as the Consolidated Value-Added Tax Regulations of 2005 Consolidated Value-Added Tax Regulations of 2005.· On sale of services and use or lease of properties . 16-2005. Further Enhancing the Rules on the Advance Payment of Value-
Issuance No. Excluding Services Rendered by Doctors of Medicine duly Registered with the Professional Regulatory Commission (PRC). including the use or lease of properties · On importation of goods . as Amended by RA 9238. and Services Rendered by Lawyers Duly Registered with the Integrated Bar of the Philippines (IBP) from the Coverage of Value-Added Tax. 13-2008
RR No. such as tax to be paid by the importer prior to the release of such goods from customs custody. 62007 Consolidated Regulations on Advance Value-Added Tax on the Sale of Refined Sugar.twelve percent (12%) based on the total value used by the Bureau of Customs in determining tariff and customs duties. RR No. 6-2007
RR No. 109(bb) and (cc) of the National Internal Revenue Code.
(b) Allotment to the Regional Government (RG) of the 30% Share of the National Government (NG) of all Current Year Collections of Internal Revenue Taxes Within ARMM for a Period of Five (5) Years as may be Provided in the Annual Appropriations Act as Provided for Under Section 15. and Providing for the Penalties and Effect of Non-Submission Thereof. Rules and Regulations To Implement The Remittance of the Following: (a) 70% Share of the ARMM in the Withholding Tax Payments of National Government Agencies (NGAs) and in the National Collections from Taxpayers Other Than NGAs Provided for Under Section 9. With Respect to the Time of Filing of Quarterly VAT Returns. Withholding of Creditable VAT and other Percentage Taxes Revenue Memorandum Orders(RMOs) SUBJECT Amendment and Consolidation of the Guidelines in the Conduct of Surveillance and Stock-Taking Activities. Amending RR 7-89 and 292002 RR 29-2003 RR 28-2003 Advance Payment of VAT on the Sale of Flour Amending Further Pertinent Provisions of RR 2-98 as Amended. Relative to the Issuance of Certificate of Value-Added Tax Withheld at Source. and Clarifying Further the Mode of Remittance of VAT Due From Non-Residents. Enhancing the Rules on the Advance Payment of Value. Article IX of RA 9054. Thereby Amending RR 4-2002. RMO No. both of Article IX of RA 9054 As Well As in Relation to Section 283 of the National Internal Revenue Code (NIRC) of 1997. Article IX of RA 9054. 8424. and c) 50% of the 80% Share of the NG from the Yearly Incremental Revenue From VAT Collections Within ARMM Received by the Central Government as Provided for Under Section 15. and the Implementation of the Administrative Sanction of Suspension and Temporary Closure of Business 10/30/2003 10/15/2003
Issuance No. Amending Further Pertinent Provisions of RR 7-95. 3-2009
. and Other Purposes. in Relation to Section 9. Pertaining to the Deadline for the Usage of Properly Stamped Unused Non-VAT Invoices or Receipts. thereby Amending RR 7-89. Implementing Republic Act No. Regulations Further Amending the Transitory Provisions of RR 18-99 as Amended by RR 12-2003.Added Tax on Sale of Refined Sugar. Amending Therein Certain Sections of RR 4-98. as Amended . Contents and Submission of Quarterly Total of Monthly Sales and Purchases Per Supplier or Customer. Withholding of Income Tax on Compensation.Added Tax on the Sale of Refined Sugar. "An Act Amending the National Internal Revenue Code (NIRC) as Amended" relative to the Withholding on Income Subject to the Expanded Withholding Tax and Final Withholding Tax. and For the Purpose.
RMO No. 81-99 RMO No. and from Excess Baggage Tax Treatment of Director¶s Fees for Income Tax and Business Tax Purposes Clarifying the Effect of Suspension of RR No. Requisition. 13-2007 Dated October 15. 59-2007
. Issuance and Distribution of Certificate of Advance Payment of Value-Added Tax/ Percentage Tax on the Transport of Naturally Grown and Planted Timber Products as Prescribed in RR No. 29-2003 on the advance payment of Value-Added Tax on the sale of flour
RMO No. 34-2008 RMC No. 46-2008
RMC No. 40-94
Issuance No. 16-2007 Prescribing Additional Procedures in the Audit of Input Taxes Claimed in the VAT Returns by Revenue Officers and Amending "Annex B" of RMO No. 26-2005 Suspension of issuance of assessments for deficiency Value-Added Tax against cinema/theater operators/owners RMO No. RMC No.RMO No. 77-2008
RMC No. 81-99 RMO No. Reporting. 5-2004 Prescribing the guidelines and procedures in the implementation of RR No. 6-2007. Otherwise
RMO No. 7-2006 Prescribing the guidelines and procedures in the processing of applications for zero-rating of effectively zero-rated transactions for Value-Added Tax purposes
RMO No. properties and services made by VATregistered suppliers to BOI-registered manufacturers-exporters with 100% export sales Issuance of Value-Added Tax (VAT) Exemption Certificate to all qualified embassies and their personnel Prescribing the Modified Procedures on the Processing of Claims for VAT Credit/ Refund Revenue Memorandum Circulars (RMCs) SUBJECT Taxability of Director¶s Fees Received By Directors Who are not Employees of the Corporation for VAT or Percentage Tax Purposes as Espoused Under Revenue Memorandum Circular No. 9-2000 Tax treatment of sales of goods. 6-2008
Prescribing the Guidelines and Procedures in the Printing. 35-2002 Prescribing the guidelines and procedures in the processing and issuance of Authority to Release Imported Goods (ATRIG) for Excise and Value-Added Tax Purposes RMO No. 53-98 With Respect to the Checklist of Documents to be Submitted by a Taxpayer Upon Audit of his/its VAT Liabilities as well as the Mandatory Reporting Requirements to be Prepared by the Assigned Revenue Officer/s Relative Thereto. Goods/Cargoes and Mail. All of Which Shall Form an Integral Part of the Docket RMO No. 22-2004 Value-Added Tax (VAT) Exemption Certificate/ Identification Card Issued to qualified foreign embassies and their qualified personnel Amending/ Modifying RMO No. 34-2008 Clarification of Issues Concerning Common Carriers by Air and Their Agents Relative to the Revenue and Receipt from Transport of Passengers.
8424 as amended by Republic Act No. 39-2007
RMC No.2.114 and 5. 113. 114.A. 151. 53-2007 Reiteration of the Amendment Made by RA No. 112. 119. Department of Finance One-Stop Shop Inter-Agency Tax Credit and Duty Drawback Center (DOF-OSS) Clarifying certain issues relating to the implementation of the increase in the Value-Added Tax rate from 10% to 12% on the sale of goods pursuant to Republic Act No. 9337 Imposing VAT on the Sale of Non-Food Agricultural Products. 35-2006 RMC No. 4. 121. 237 and 288 of the National Internal 8/7/2007
RMC No. 9337 (An Act Amending Sections 27. 9337 Transition procedures for all Electronic Filing and Payment System filers (Large Taxpayers/Top 10. Amending and/or Revoking All Revenue Issuances Issued to this Effect and for Other Related Purposes" RMC No. 2005 Version) and other Related Issues Clarifying certain issues relating to the implementation of the increase in the VAT rate from 10% to 12% pursuant to Republic Act No. 110.Known As the "Consolidated Regulations on Advance Value-Added Tax on the Sale of Refined Sugar. 62-2005
. 116. 2-98 as amended by Revenue Regulations No. 8-2006
RMC No. 162005 in relation to Sections 57 (B). 31-2006
RMC No. 108. 68-2005
RMC No. 9337 Clarification of Issues on How to Fill-up the new Version of VAT Forms (September. 2550Q (Quarterly Value-Added Tax Return) ± September 2005 version Revised guidelines in the registration and invoicing requirements including clarification on common issues affecting Value-Added Tax (VAT) taxpayers Pursuant to RA No. 111. 34.000 Corporations) in filing tax returns affected by the new VAT Law (R. 21-2006 RMC No. 117. 5-2006
RMC No.57.116 of Revenue Regulations No. 236. 2550M (Monthly ValueAdded Tax Declaration) and BIR Form No. 109. 148. 9337) Enhanced VAT forms ± BIR Form No. 9337 Prescribing the use of the Government Money Payment Chart Implementing Sections 2. 22-2006
RMC No. 28. 114 (C) and 116 to 123 of Republic Act No. 106. Marine and Forest Products and on the Sale of Cotton and Cotton Seeds in their Original State Clarifying the Income Tax and VAT Treatment of Agency Fees/Gross Receipts of Security Agencies Including the Withholding of Taxes Due Thereon Clarifying the Proper VAT and EWT Treatment of Freight and Other Incidental Charges Billed by Freight Forwarders Value Added Tax (VAT) on the Construction or Renovation of Official Buildings or Properties of the United States of America Embassy Prescribing the Submission of a Narrative Memorandum Report to Accompany the VAT Credit Evaluation Report and Requiring the Attachment of Certain Documents Prior to Approval of the Tax Credit Certificate (TCC) Recommended by the Tax and Revenue Group (TRG). 30-2006
RMC No. 72-2005
RMC No. 2005 Value-Added Tax (VAT) Liability of the Tollway Industry Clarifying the provisions of Republic Act No. Including Those Filed with the Tax and Revenue Group.RMC No. 2-2004
RMC No. 57-2005 RMC No. 7-95 Issuance of VAT Invoices/Receipt for Non-VAT/Exempt Sale of Goods. One-Stop Shop Inter-Agency Tax Credit and Duty Drawback Center. 42-2003
RMC No. Whichever is Applicable. 9337 (VAT Law of 2005) applicable to the petroleum industry Clarification on proper determination of amount of Value-Added Tax on VAT invoices or VAT official receipts Clarification regarding the withholding of creditable Value-Added Tax by government offices for purchases of P1. 6-2003
RMC No. as Amended. by Excluding Several Services from the Coverage of the Value-Added Tax and Re-Imposing the Gross Receipts Tax on Banks and NonBank Financial Intermediaries Performing Quasi-Banking Functions and Other Non-Bank Financial Intermediaries Beginning January 1. 37-2004 RMC No. Beginning January 1. As Amended.000. 60-2004 RMC No. 52-2005 RMC No. 9-2004
8/20/2004 6/16/2004 2/19/2004
RMC No. 29-2005
Revenue Code of 1997. Department of Finance (OSS-
10/18/2005 9/28/2005 6/29/2005 11/20/2004
RMC No. and for other Purposes) Attachments to the quarterly VAT return to be filed starting October 25.00 and below Settlement of the Value-Added Tax liabilities of pawnshops for taxable years 1996 to 2002 Guidelines and Policies Applicable to the Business Tax Applicable to Banks and Non-Bank Financial Intermediaries Performing QuasiBanking Functions and other Non-Bank Financial Intermediaries As A Result of the Enactment and Effectivity of Republic Act No. An Act Amending Certain Provisions of the National Internal Revenue Code of 1997. General Professional Partnerships. 2003 Clarifying the issues on VAT taxable transactions of Philippine Ports Authority Amending Revenue Memorandum Circular No. 2004 Clarifying Certain Issues Relative to the Services Rendered by Individual Professional Practitioners. Entertainers. 7716 As Implemented by Revenue Regulations No. Department of Finance (OSS-DOF) by Direct Exporters Clarifying certain issues raised relative to the processing of claims for Value-Added Tax (VAT) credit/refund. Pursuant to Republic Act No. including those filed with the Tax and Revenue Group. 42-2003 and Providing Additional Guidelines on Issues Relative to the Processing of Claims for ValueAdded Tax (VAT) Credit/Refund. Properties or Services Amending Answer to Question Number 17 of Revenue Memorandum Circular No. 20-88. One-Stop Shop Inter-Agency Tax Credit and Duty Drawback Center. 61-2003 RMC No. and Professional Athletes Who Are Subject to the Value-Added Tax or Percentage Tax. 9238.
2-98 implementing Section 57(B) of the Tax Code of 1997 5/20/2003 12/13/2002 10/12/2001 7/2/2001 3/18/1999
RMC No. 32-99
Codal Reference Sections 105 to 115 of the National Internal Revenue Code of 1997. as amended
Frequently Asked Questions I.57.DOF) by Direct Exporters RMC No. 28-2001 RMC No. General VAT Queries Who are liable to register as VAT taxpayers? When is a new VAT taxpayer required to apply for registration and pay the registration fee? What compliance activities should a VAT taxpayer. 30-2003 RMC No. SBMA and Clark Development Authority Japanese Contractors undertaking Overseas Economic Cooperation Fund of Japan (OECF) Funded Project are Exempt from the eight and one half percent (8. do promptly or periodically? How do we determine the main or principal business of a taxpayer who is engaged in mixed business activities? What is the liability of a taxpayer becoming liable to VAT and did not register as such? Who may opt to register as VAT and what will be his liability?
. after registration as such.2(E) of RR No. 45-2001 RMC No. 25-99 Clarification of Paragraph 1-Q of Revenue Memorandum Circular No. 28-2003 Taxability of Health Maintenance Organizations (HMOs) for VAT purposes. 56-2002 RMC No.5%) creditable VAT imposed under Section 114(C) of the Tax Code of 1997 and to the One Percent (1%) Expanded Withholding Tax (EWT) imposed under Section 2. Taxability of Pawnshop Operators for VAT Purposes Taxability of Movie/Cinema House Operators for VAT Purposes Disseminating the Ruling of the Commissioner of Internal Revenue on the Non-eligibility for VAT Zero-Rating of Automobile Sales to Entities Registered with PEZA.
Relief-Related Queries What is "RELIEF" ?
.What are the instances when a VAT-registered person may cancel his VAT registration? When will the cancellation for registration be effective? What is the invoicing/ receipt requirement of a VAT-registered person? May a VAT-registered person issue a single invoice/ receipt involving VAT and Non-VAT transactions? May a VAT-registered person issue separate invoices/ receipts involving VAT and Non-VAT transaction? How is the Value-Added Tax presented in the receipt/ invoice? What is the information that must be contained in the VAT invoice or VAT official receipt? What is the liability of a taxpayer not registered as VAT and issues a VAT invoice/ receipt? What is the liability of a VAT-registered person in the issuance of a VAT invoice/ receipt for VAT0 exempt transactions? What is "output tax"? What is "input tax"? What comprises "goods or properties"? What comprises "sale or exchange of services"? What is a zero-rated sale? What transactions are considered as zero-rated sales? Where will taxpayers file their application for VAT zero-rating? What is a Contractor's Final Payment Release Certificate and where should taxpayers file their application for this? What transactions are considered as deemed sales? What is VAT-exempt sale? What are the VAT-exempt transactions? What are the previously exempt transactions that are now subject to VAT? II.
before using the same.500. Pay the annual registration fee of P500. 0605 for every separate or distinct establishment or place of business before the start of their business following existing issuances on registration. do promptly or periodically? The following compliance activities must be performed by a VAT-registered taxpayer: a. other than those that are exempt under Section 109 (A) to (U). What compliance activities should a VAT taxpayer.Who are required to submit Summary List of Sales? Who are required to submit Summary List of Purchases? What are the Summary Lists required to be submitted? When is the deadline for submission of the above Summary Lists? What are the penalties for failure to submit the Summary Lists? III. Thereafter. have exceeded One Million Five Hundred Thousand Pesos (P1. a separate set of non-VAT invoices or non-VAT official receipts need to be registered for use on transactions not subject to VAT). every year.00).00 for every place of business or establishment that generates sales.00) using BIR Form No. In what grounds can the Commissioner of Internal Revenue suspend the business operations of a taxpayer?
I. Register the sales invoices and official receipts as VAT-invoices or VAT official receipts for use on transactions subject to VAT. sells.000. When is a new VAT taxpayer required to apply for registration and pay the registration fee? New VAT taxpayers shall apply for registration as VAT Taxpayers and pay the corresponding registration fee of five hundred pesos (P500. barters or exchanges goods or properties or engages in the sale or exchange of services shall be liable to register if: a. after registration as such. in the course of trade or business. (If there are other transaction not subject to VAT. will exceed One Million Five Hundred Thousand Pesos (P1. c. Register the books of accounts of the business/occupation/calling.000. His gross sales or receipts for the past twelve (12) months.00) not later than January 31. other than those that are exempt under Section 109 (A) to (U). b.00): or b. Filing of the Monthly Value-added Tax Declaration on or before the 20th day following the end of
. taxpayers are required to pay the annual registration fee of five hundred pesos (P500. General VAT Queries Who are liable to register as VAT taxpayers? Any person who. including practice of profession. d. There are reasonable grounds to believe that his gross sales or receipts for the next twelve (12) months.500. What is the treatment for Withholding of VAT on Government Money Payments? IV.
000. Any person who is VAT-registered but enters into transactions which are exempt from VAT (mixed transactions) may opt that the VAT apply to his transactions which would have been exempt under Section 109(1) of the Tax Code. but without the benefit of input tax credits for the period in which he was not properly registered. as amended [Sec.the taxable month (for manual filers)/on or before the prescribed due dates enunciated in RR No. he can not be considered as a VAT person eligible for the election provided for under Section 109(2) of the Tax Code. and the soft copy of the Quarterly Schedule of Monthly Domestic Purchases and Input Tax/ the soft copy of the Schedule of Transactional/Individual Importation ( if the quarterly total purchases exceed P1. once exercised.000. 4.500. e. What is the liability of a taxpayer becoming liable to VAT and did not register as such? Any person who becomes liable to VAT and fails to register as such shall be liable to pay the output tax as if he is a VAT-registered person. This option. we apply the predominance test. Otherwise. 4.109-1 (B) (1) (V) not required to register for VAT may. elect to be VAT-registered by registering with the RDO that has jurisdiction over the head office of that person.000. the soft copy of the Quarterly Schedule of Monthly Sales and Output Tax (if the quarterly sales exceed P2. The above-stated taxpayers may apply for VAT registration not later than ten (10) days before the
. its main/principal business falls within the VAT system making its status as a VAT person. Franchise grantees of radio and/or television broadcasting whose annual gross receipts of the preceding year do not exceed ten million pesos (P10. (The monthly VAT Declaration and the Quarterly VAT Return shall reflect the consolidated total for all the taxable lines of activity and all the establishments . Any person who is VAT-exempt under Sec. How do we determine the main or principal business of a taxpayer who is engaged in mixed business activities? In determining the main or principal business of a taxpayer. 3. Submit with the RDO/LTDO having jurisdiction over the taxpayer. Who may opt to register as VAT and what will be his liability? 1.109-2. (Sec. with the accredited agent banks (AABs) of the BIR or Revenue Collection Officers (RCOs) of the BIR (in areas without AAB). 16-2005 (for e-filers) using BIR Form No. in relation to Sec. and VAT payable or excess input VAT. reflecting therein the required data prescribed under existing revenue issuances. for returns with payment.head office and branches). whichever is applicable. 109(2)]. and pay the annual registration fee of P500. if more than fifty (50%) of its gross sales and/or gross receipts comes from its business/es subject to VAT. for returns without payment. other allowable tax credits as in the case of advance VAT payment and VAT withheld by government payors.000. on or before the deadline set in the filing of the Quarterly VAT Return. Under this test. 2550M and of the Quarterly VAT Return on or before the 25th day following the end of the taxable quarter using BIR Form No. or with the RDO/LTDO having jurisdiction over the taxpayer (home RDO/LTDO). Tax Code).00) derived from the business covered by the law granting the franchise may opt for VAT registration. shall be irrevocable. 2550Q. purchases of goods and services made in the course of trade or business/exercise of profession and input tax (VAT on purchases). 2. Any person who elects to register under optional registration shall not be allowed to cancel his registration for the next three (3) years.000.00).00 for every separate and distinct establishment. reflecting therein gross receipts (for seller of service)/ gross sales (for seller of goods) and output tax (VAT on sales). 119.00). 4.
barter or exchange of services.500. the taxpayer shall be liable to output tax and be entitled to input tax credit beginning on the first day of the month following registration. and zero-rated component of its sales provided that if the sales is exempt from value-added tax. A VAT registered person may issue separate invoices/ receipts for the taxable. for administrative reason deny any application for registration.00 VAT 12. May a VAT-registered person issue a single invoice/ receipt involving VAT and Non-VAT transactions? Yes.000. If he has ceased to carry on his trade or business. will not exceed one million five hundred thousand pesos (P1. Once registered as a VAT person. Name of Seller 2.00 What is the information that must be contained in the VAT invoice or VAT official receipt? 1.beginning of the calendar quarter and shall pay the registration fee unless they have already paid at the beginning of the year. How is the Value-Added Tax presented in the receipt/ invoice? The amount of the tax shall be shown as a separate item in the invoice or receipt. other than those that are exempt under Section 109 (A) to (U). What is the invoicing/ receipt requirement of a VAT-registered person? A VAT registered person shall issue : 1. May a VAT. exempt and zero-rated components and the calculation of the Value-Added Tax on each portion of the sale shall be shown on the invoice or receipt. A VAT invoice for every sale.000. He may issue a single invoice/ receipt involving VAT and non-VAT transactions provided that the invoice or receipt shall clearly indicate the break-down of the sales price between its taxable. Sample: Sales Price P100. or 2.00 Invoice Amount P112. and 2.000.00). In any case. the Commissioner of Internal Revenue may. What are the instances when a VAT-registered person may cancel his VAT registration? 1. followed by his TIN
. barter or exchange of goods or properties. When will the cancellation for registration be effective? The cancellation for registration will be effective from the first day of the following month the cancellation was approved. Business Style of the Seller 3. A VAT official receipt for every lease of goods or properties and for every sale.registered person issue separate invoices/ receipts involving VAT and Non-VAT transactions? Yes. the term "ZERO-RATED SALE" shall be written or printed prominently on the invoice or receipt. Business Address of the Seller 4. Statement that the seller is a VAT-registered person.000. If he makes a written application and can demonstrate to the commissioner's satisfaction that his gross sales or receipts for the following twelve (12) months. and does not expect to recommence any trade or business within the next twelve (12) months. exempt. the term "VAT-EXEMPT SALE" shall be written or printed prominently on the invoice or receipt and if the sale is subject to zero percent (0%) VAT.
exempt and zero-rated components.
5. What is the liability of a taxpayer not registered as VAT and issues a VAT invoice/ receipt? The non-VAT registered person shall. 11. the invoice or receipt shall clearly indicate the breakdown of the sales price between its taxable. What is the liability of a VAT-registered person in the issuance of a VAT invoice/ receipt for VATexempt transactions? 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 transaction shall become taxable and the issuer shall be liable to pay the VAT thereon. provided that: y The amount of tax shall be shown as a separate item in the invoice or receipt. properties or services some of which are subject to and some of which are zero-rated or exempt from VAT. If the invoice/ receipts contain the required information. 14.000.registered and amount exceed P1. be liable to VAT imposed in Section 106 or 108 of the Tax Code without the benefit of any input tax credit plus 50% surcharge on the VAT payable (output tax).00 Date of transaction Quantity Unit cost Description of the goods or properties or nature of the service Purchase price plus the VAT. including lease or use of property in the course of his trade or business. The purchaser shall be entitled to claim an input tax credit on his purchase. the term "ZERO-RATED SALE" shall be written or printed prominently on the invoice receipt. in addition to paying the percentage tax applicable to his transactions. 9. 10. It shall also include the transitional input tax determined in accordance with Section 111 of the Tax Code. What is "input tax"? Input tax means the VAT due on or paid by a VAT-registered on importation of goods or local purchase of goods. 13. Authority to Print Receipt Number at the lower left corner of the invoice or receipt. and y If the sale involves goods. 12. y If the sale is subject to zero percent (0%) VAT. What comprises "goods or properties"? The term "goods or properties" shall mean all tangible and intangible objects. 6. presumptive input tax and deferred input tax from previous period. y If the sale is exempt from VAT. purchaser shall be allowed to recognize an input tax credit. if VAT. 7. and the calculation of the VAT on each portion of the sale shall be shown on the invoice or receipt.Name of Buyer Business Style of Buyer Address of Buyer TIN of buyer. lease or exchange of taxable goods or properties or services by any person registered or required to register under Section 236 of the Tax Code. which are capable of pecuniary estimation and shall include. 8. the term "VAT-EXEMPT SALE" shall be written or printed prominently on the invoice or receipt. properties or services. among others:
What is "output tax"? Output tax means the VAT due on the sale.
The right or the privilege to use patent. Similar services regardless of whether or not the performance thereof calls for the exercise of use of the physical or mental faculties. Common carriers by air and sea relative to their transport of passengers. c. Radio. films. satellite transmission and cable television time. design or model.000. Dealers in securities. b. refreshment parlors. goodwill. k. Proprietors or operators of restaurants. commercial or scientific equipment. goods or cargoes from one place in the Philippines to another place in the Philippines. design or model. o. patent. resorts. Transportation contractors on their transport of goods or cargoes. telephone and telegraph. b. i. operators or keepers of hotels. Persons engaged in milling. h. cafes. transmission. Construction and service contractors. Non-life insurance companies (except their crop insurances). c. Lessors or distributors of cinematographic films. whether in kind or in cash.00). fidelity. f. Lessors of property. Stock. Proprietors. secret formula or process. manufacturing or repacking goods for others. Franchise grantees of electric utilities. television. commercial or scientific equipment. and e. What comprises "sale or exchange of services"? The term "sale or exchange of services" means the performance of all kinds of services in the Philippines for others for a fee. technical. d. c. m. Lending investors. b. radio and/or television broadcasting and all other franchise grantees. trademark. j. and other eating places. plan. real estate. The lease of use of or the right or privilege to use any copyright. goodwill. or right or any such knowledge or information. including persons who transport goods or cargoes for hire and other domestic common carriers by land relative to their transport of goods or cargoes. Sales of electricity by generation. e. The supply of scientific. The supply of services by a nonresident person or his employee in connection with the use of
. processing. g. including those performed or rendered by the following: a. trade brand or other like property or right. and franchise grantees of gas and water utilities. industrial or commercial knowledge or information. The supply of any assistance that is ancillary and subsidiary to and is furnished as a means of enabling the application or enjoyment of any such property. secret formula or process. e. trademark. trade brand or other like property or right. Real properties held primarily for sale to customers or held for lease in the ordinary course of trade or business. except franchise grantees of radio and/or television broadcasting whose annual gross receipts of the preceding year do not exceed Ten Million Pesos (P10. including surety.a. The phrase "sale or exchange of services" shall likewise include: a. remuneration or consideration. commercial. pension houses. d. plan. including clubs and caterers. inns. The right or privilege to use in the Philippines of any industrial. rest houses. and movie houses. customs and immigration brokers. tapes and discs. Persons engaged in warehousing services. motels. and/or distribution companies. or the right to use of any industrial. copyright. The lease or the use of. d. whether personal or real. n. l.000. indemnity and bonding companies. theatres. and p. The right or the privilege to use motion picture films.
and h. the input tax on purchases of goods. solar. or the installation or operation of any brand. satellite transmission and cable television time. Provided. Processing. however. g. What is a zero-rated sale? It is a sale. goods or cargoes from one place in the Philippines to another place in the Philippines. 1. including leases of property for use thereof. properties and/or services subject to 0% VAT pursuant to Sections 106 (A) (2) and 108 (B) of the Tax Code. f. Sale of power or fuel generated through renewable sources of energy such as. however that zero-rating shall apply strictly to the sale of power or fuel generated through renewable sources of energy. that the services referred to herein shall not pertain to those made to common carriers by air and sea relative to their transport of passengers. manufacturing or repacking rendered to a person engaged in business conducted outside the Philippines or to a non-resident person engaged in business who is outside the Philippines when the services are performed. Services rendered to persons engaged in international shipping or air transport operations. project or scheme. geothermal and steam. 108 of the Tax Code starting Feb. Provided. industrial or commercial undertaking. television. but shall not result in any output tax. machinery or other apparatus purchased from such non-resident person. venture. The lease of motion picture films. e. Transport of passengers and cargo by domestic air or sea carriers from the Philippines to a foreign country. but not limited to. hydropower. However. and other shipping sources using technologies such as fuel cells and hydrogen fuels. assistance or services rendered in connection with technical management or administration of any scientific. ocean energy. Services other than processing. biomass.property or rights belonging to. and shall not extend to the sale of services related to the maintenance or operation of plants generating said
. films. converting. shall be available as tax credit or refund in accordance with RR No. It is a taxable transaction for VAT purposes. manufacturing or repacking goods for other persons doing business outside the Philippines which goods are subsequently exported where the services are paid for in acceptable foreign currency and accounted for in accordance with the rules and regulations of the Bangko Sentral ng Pilipinas (BSP). the same being subject to twelve percent (12%) VAT under Sec. barter or exchange of goods. d. 2006. or manufacturing goods for an enterprise whose export sales exceeds seventy percent (70%) of total annual production. tapes and discs. The lease or the use of or the right to use radio. f. The supply of technical advice. and g. Gross receipts of international air carriers doing business in the Philippines and international sea carriers doing business in the Philippines are still liable to a percentage tax of three percent (3%) based on their gross receipts as provided for in Sec. b. wind. 118 of the Tax Code but shall not be liable to VAT. c. 16-2005. the consideration for which is paid for in acceptable foreign currency and accounted for in accordance with the rules and regulations of the Bangko Sentral ng Pilipinas (BSP). Services performed by subcontractors and/or contractors in processing. properties or services. What transactions are considered as zero-rated sales? The following services performed in the Philippines by VAT-registered person shall be subject to zero percent (0%) rate: a. related to such zerorated sales. Services rendered to persons or entities whose exemption under special laws or international agreements to which the Philippines is a signatory effectively subjects the supply of such services to zero percent (0%) rate.
or to load passengers and/or cargoes bound for abroad. Foreign Currency Denominated Sales The sale to a non-resident of goods. and accounted for in accordance with the rules and regulations of the BSP. o Transactions considered export sales under Executive Order No. assembled or manufactured in the Philippines for delivery to a resident in the Philippines. and other special laws. that the same is limited to goods. that if any portion of such fuel. goods and supplies shall be subject to twelve percent (12%) output VAT. supplies. further. Export sales o The sale and actual shipment of goods from the Philippines to a foreign country. equipment and fuel pertaining to or attributable to the transport of goods and passengers from a port in the Philippines directly to a foreign port. such as. paid for in acceptable foreign currency and accounted for in accordance with the rules and regulations of the BSP. The following sales by VAT-registered persons shall be subject to zero percent (0%) rate: a. paid in acceptable foreign currency or its equivalent in goods or services. etc. b. otherwise known as the Omnibus Investments Code of 1987. Provided. c. What is a Contractor's Final Payment Release Certificate and where should taxpayers file their application for this? The Contractor's Final Payment Release Certificate is issued by the BIR before a government contractor is
. or vice-versa without docking or stopping at any other port in the Philippines unless the docking or stopping at any other Philippine port is for the purpose of unloading passengers and/or cargoes that originated from abroad.power . supplies. processing. o Sale of gold to the BSP. as the case may be. BIR National Office. equipment and fuel to persons engaged in international shipping or international air transport operations. paid for in acceptable foreign currency. o The sale of raw materials or packaging materials to an export-oriented enterprise whose export sales exceed seventy percent (70%) of total annual production. Where will taxpayers file their applications for VAT zero-rating? Taxpayers shall file their application directly with the Audit Information. o The sale of raw materials or packaging materials to a non-resident buyer for delivery to as resident local export-oriented enterprise to be used in manufacturing. and accounted for in accordance with the rules and regulations of the Bangko Sentral ng Pilipinas (BSP). Provided. 226. except those mentioned in Sections 149 and 150 of the Tax Code. and o The sale of goods. or with the LTAID I and II. packing or repacking in the Philippines of the said buyer's goods. Sales to Persons or Entities Deemed Tax-exempt under Special Law or International Agreement Sale of goods or property to persons or entities who are tax-exempt under special laws or international agreements to which the Philippines is a signatory. International Rice Research Institute (IRRI). Asian Development Bank (ADB). goods or supplies is used for purposes other than the mentioned in this paragraph. irrespective of any shipping arrangement that may be agreed upon which may influence or determine the transfer of ownership of the goods so exported. such portion of fuel. Tax Exemption and Incentives Division (AITEID) under the Assessment Service.
barter or exchange. whether or not the business is continued by the new owner or successor. Retirement from or cessation of business. domestic animals. and personal household effects (except any vehicle. or o Creditors in payment of debt or obligation c. aircraft. b. give rise to transactions "deemed sale". or the proprietor of a single proprietorship sells his entire business. whether locally produced or imported. d. Sale or importation of agricultural and marine food products in their original state. that such goods are exempt from custom duties under the Tariff and Customs Code of the Philippines. whether capital goods. including ingredients. Transfer. as amended. Sale or importation of fertilizers. e. o Change of ownership of the business. Importation of professional instruments and implements. of goods or properties originally intended for sale or for use in the course of business. used in the manufacture of finished feeds (except specialty feeds for race horses. livestock and poultry feeds. upon the production of evidence satisfactory to the Commissioner of Internal Revenue. for their own use and not for sale. supplies or materials as of the date of such retirement or cessation. Provided. or arriving within ninety (90) days before or after their arrival. What are the VAT-exempt transactions? a. zoo animals and other animals considered as pets). The following circumstances shall. What is VAT-exempt sale? It is a sale of goods. Transfer of goods or properties not in the course of business can take place when VAT-registered person withdraws goods from his business for his personal use. aquarium fish. fish. not in the course of business. accompanying such persons. There is a change in the ownership of the business when a single proprietorship incorporated. seedlings and fingerlings. livestock and poultry of a kind generally used as. or yielding or producing foods for human consumption. Consigned goods returned by the consignee within the 60-day period are not deemed sold. wearing apparel. and breeding stock and genetic materials therefore. with respect to all goods on hand. Services subject to percentage tax under Title V of the Code. Consignment of goods if actual sale is not made within sixty (60) days following the date such goods were consigned. o Dissolution of a partnership and creation of a new partnership which takes over the business. use or consumption. vessel. Tax Exemption and Incentives Division (AITEID) What transactions are considered deemed sales? The following transactions are considered as deemed sales: a. fighting cocks. Importation of personal and household effects belonging to residents of the Philippines returning from abroad and non-resident citizens coming to resettle in the Philippines. Taxpayers may file their application at the BIR National Office at the Audit Information.fully paid for his contract with the government. c. machinery and other goods for use in the manufacture and merchandise of any kind in commercial quantity) belonging to persons coming to settle in the Philippines. seeds. prawn. among others. that such persons are actually coming to settle in the Philippines and that the change of residence is bonafide. stock-in-trade. Distribution or transfer to: o Shareholders or investors as share in the profits of the VAT-registered person. b. d. properties or service and the use or lease of properties which is not subject to output tax and whereby the buyer is not allowed any tax credit or input tax related to such exempt sale.
Medical. Export sales by persons who are not VAT-registered. dental. Sale of residential lot valued at One Million Five Hundred Thousand Pesos (P1. p. Sale of real properties utilized for specialized housing as defined under RA No. as well as of their produce. 2009 and every three (3) years thereafter.
. or house and lot and other residential dwellings valued at Two Million Five Hundred Thousand Pesos (P2. 7279. 7835 and RA No. 3. Sale of real properties utilized for low-cost housing as defined by RA No. corn into grits. to non-members.000. whether in its original state or processed form. 8763. Sales by non-agricultural. Services rendered by individuals pursuant to an employer-employee relationship. Gross receipts from lending activities by credit or multi-purpose cooperatives duly registered and in good standing with the Cooperative Development Authority. to be used directly and exclusively in the production and/or processing of their produce. and sugar cane into raw sugar. hospital and veterinary services except those rendered by professionals.00) and below where the instrument of sale/ transfer/ disposition was executed on or after July 1. 8763. 2. 4. g. the Commission on Higher Education (CHED) and the Technical Education and Skills Development Authority (TESDA) and those rendered by the government educational institutions. The following sales of real properties are exempt from VAT. Lease of residential units with a monthly rental per unit not exceeding Ten Thousand Pesos (P10. 2005. 7279.000. 2009 and every three (3) years thereafter.
o. 529 . the amount of P10. Provided. further. that the share capital contribution of each member does not exceed Fifteen Thousand Pesos (P15. Services rendered by regional or area headquarters established in the Philippines by multinational corporations which act as supervisory.00) and below.000. that not later than January 31. including spare parts thereof. as published by the National Statistics Office (NSO).
m. subsidiaries or branches in the Asia-Pacific Region and do not earn or derive income from the Philippines. Sale of real properties not primarily held for sale to customers or held for lease in the ordinary course of trade or business. their importation of direct farm inputs. that such adjustment shall be published through revenue regulations to be issued not later than March 31 of each year.000. regardless of the amount of aggregate rentals received by the lessor during the year.00) and regardless of the aggregate capital and net surplus ratably distributed among the members.
i. namely: 1. No. such as RA No.500.00 shall be adjusted to its present value using the Consumer Price Index. Provided. the amounts stated herein shall be adjusted to its present value using the Consumer Price Index. otherwise known as the "Urban Development and Housing Act of 1992" and other related laws. wherein price ceiling per unit is P225.f.
Services by agricultural contract growers and milling for others of palay into rice.000. Transactions which are exempt under international agreements to which the Philippines is a signatory or under special laws except those granted under P.
q. as published by the NSO.00 or as may from time to time be determined by the HUDCC and the NEDA and other related laws.500. non-electric and non-credit cooperatives duly registered with and in good standing with CDA. machineries and equipment. h.D. Provided. Sales by agricultural cooperatives duly registered and in good standing with the Cooperative Development Authority (CDA) to their members. j. such as RA No. 7835 and RA No.000. n.Petroleum Exploration Concessionaires under the Petroleum Act of 1949. and other related laws. Educational services rendered by private educational institutions duly accredited by the Department of Education (DepED). Provided.00). communications and coordinating centers for their affiliates. that not later than January 31.
9295. safety and rescue equipment and communication and navigational safety equipment. such as money changers and pawnshops. y Legal services. otherwise known as "The Domestic Shipping Development Act of 2004". 9295.000. at the time of acquisition counted from the date of the vessel's original commissioning. y Passenger cargo vessels of more than 5.r. respectively of the Tax Code. the age limit is fifteen (15) years old. the age limit is ten (10) year old.
t. non-bank financial intermediaries performing quasi-banking functions. importation or lease of passenger or cargo vessels and aircraft. as published by the NSO. that the said fuel. machinery. magazine. and other non-bank financial intermediaries.
. Provided. including engine and spare parts of said vessels. that the vessels to be imported shall comply with the age limit requirement. further.
s. or to load passengers and/or cargoes bound for abroad. Services of banks. y Cotton and cotton seeds.
Sale. the age limit is five (5) years old. without docking or stopping at any other port in the Philippines unless the docking or stopping at any other Philippine port is for the purpose of unloading passengers and/or cargoes that originated form abroad. such portion of fuel. finally.000. the gross annual sales and/or receipts do not exceed the amount of One Million Five Hundred Thousand Pesos (P1. subject to percentage tax under Sections 121 and 122. Provided. goods and supplies engaged in international shipping or air transport operations. further. Importation of life-saving equipment. that not later than January 31. otherwise known as "The Domestic Shipping Development Act of 2004".500.
v. and (c) for high-speed passengers crafts.500. that the exemption from VAT on the importation and local purchase of passenger and/or cargo vessels shall be limited to those of one hundred fifty (150) tons and above.000 tons. used for shipping transport operations.
What are the previously exempt transactions that are now subject to VAT? y Medical services such as dental & veterinary services rendered by professionals. Provided.
w. the amount of P1. otherwise known as the "The Domestic Shipping Development Act of 2004".
u. steel plates and other metal plates including marine-grade aluminum plates to be used in the construction. goods and supplies shall be subject to 12% VAT. repair. goods or supplies is used for purposes other that the mentioned in the paragraph. (b) for tankers. y Petroleum products. y Coal and natural gas. that the exemption shall be subject to the provisions of Section 4 of Republic Act No. 9295. Provided.00 shall be adjusted to its present value after using the Consumer Price Index.
x. as follows: (a) for passenger and/or cargo vessel. review or bulletin which appears at regular intervals with fixed prices for subscription and sale and which is not devoted principally to the publication of paid advertisements. steel plates and other metal plates including marine-grade aluminum plates. including engine equipment and spare parts thereof for domestic or international transport operations. Importation of fuel. y Marine and forest products.00). y Non-food agricultural products. renovation or alteration of any merchant marine vessel operated or to be operated in the domestic trade. that the exemption shall be subject to the provisions of Section 19 of Republic Act No. and Sale or lease of goods or properties or the performance of services other than the transactions mentioned in the preceding paragraphs. that if any portion of such fuel. printing or publication of books and any newspaper. Provided. Sale. Provided. life-saving and navigational equipment. that exemption shall be subject to the provisions of Section 4 of Republic Act No. spare parts. importation. Provided. Importation of capital equipment. goods and supplies shall be used exclusively or shall pertain to the transport of goods and/or passenger from a port in the Philippines directly to a foreign port. 2009 and every three (3) years thereafter. or vice-versa. Provided.
exceeding Two Million Five Hundred Thousand Pesos (P2.00.
II.00.000. instrumentalities or agencies. and An aggregate amount to be imposed for all such failures during a taxable year shall not exceed Twenty-Five Thousand Pesos (P25. What are the Summary Lists required to be submitted? y Quarterly Summary List of Sales to Regular Buyers/ Customers Casual Buyers/ Customers and Output Tax y Quarterly Summary of List of Local Purchases and Input tax. list or information required on the date prescribed shall pay and administrative penalty of One Thousand Pesos (P1. including importation exceeding One Million Pesos (P1. RELIEF-Related Queries What is "RELIEF"? RELIEF means Reconciliation of Listing for Enforcement. Who are required to submit Summary List of Sales? VAT taxpayers with quarterly total sales/receipts (net of VAT). Sale of residential lot valued at more than P1.000.000. including government-owned or controlled corporations (GOCCs) shall. whichever is applicable.000. transmission and distribution of electricity including that of electric cooperatives. What is the treatment for Withholding of VAT on Government Money Payments?
The goverment or any of its political subdivisions. shall be submitted on or before the twney-fifth (25th) day of the month following the close of the taxable quarter -.000. keep or supply a statement.calendar quarter or fiscal quarter. Lease of residential unit with a monthly rental of more than P10. Generation.00) are required to submit Summary List of Purchases.000. unless it is shown that such failure is due to reasonable cause and not to willful neglect.500.500.y y y y y
Work of art.00). What are the penalties for failure to submit the Summary Lists?
For failure to file. When is the deadline for submission of the above Summary Lists? The Summary List of Sales/Purchases.000. literary works. and y Quarterly Summary List of Importation.500.000. Sale of residential house & lot/dwellings valued at more than P2. before making payment on account of each purchase of goods and/or services taxed at twelve percent (12%) VAT pursuant to
.00) for each such failure.00) are required to submit a Summary List of Sales. It supports the third party information program of the Bureau through the cross referencing of third party information from the taxpayers' Summary Lists of Sales and Purchases prescribed to be submitted on a quarterly basis. Who are required to submit Summary List of Purchases? VAT taxpayers with quarterly total purchases (net of VAT) of goods and services. musical composition.
instrumentalities or agencies including GOCCs in lieu of the actual input VAT directly attributable or ratably apportioned to such sales. if actual input VAT attributable to sale to government is less than seven percent (7%) of gross payment.
The government or any of its political subdivisions.Sections 106 and 108 of the Tax Code. the difference must be closed to expense or cost. shall withhold twelve percent (12%) VAT with respect to the following payments: 1. estates and trusts. instrumentalities or agencies including GOCCs. the excess may form part of the sellers' expense or cost. Should actual input VAT attributable to sales to government exceeds seven percent (7%) of gross payments. The remaining seven percent (7%) effectively accounts for the standard input VAT for sales of goods or services to government or any of its political subdivisions. On the other hand. The five percent (5%) final VAT withholding rate shall represent the net VAT payable of the seller.
IV. as well as private corporation. and 2. individuals. or Understatement of taxable sales or receipts by thirty percent (30%) or more of his correct taxable sales or receipts for the taxable quarter. Other services rendered in the Philippines by non-residents. In what grounds can the Commissioner of Internal Revenue suspend the business operations of a taxpayer? The Commissioner or his authorized representative is empowered to suspend the business operations and temporarily close the business establishment of any person for any of the following violations: (a) In the case of a VAT-registered Person:
y y y
Failure to issue receipts or invoices.
. Failure to file a value-added-tax return as required under Section 114.
(b) Failure to any Person to Register as Required under Section 236
The temporary closure of the establishment shall be for the duration of not less than five (5) days and shall be lifted only upon compliance with whatever requirements prescribed by the Commissioner in the closure order. deduct and withhold a Final VAT due at the rate of five percent (5%) of the gross payment. Lease or use of properties or property rights owned by non-residents. whether large or non-large taxpayers.