Revenue Regulation No.

13-2018 NOTE:
A. If Actual Input VAT > Standard Input
B. If Actual Input VAT < Standard Input V

IN THE SYSTEM:
Sales Invoice
Accounts Receivable
Sales
Output VAT

Collection: Cash Receipt

COH/CIB
Accounts Receivables

AR: Credit Memo

Creditable Withholding VAT
Accounts Receivables

IF AIV > SIV

Output VAT
Cred. Input VAT/ Temp. Asset
Input VAT
CWV

IF AIV < SIV

Output VAT
Input VAT
CWV
VAT Payable

VAT Payment using Misc. Payment

VAT Payable
Cash in Bank
al Input VAT > Standard Input VAT = INPUT VAT EXPENSE / COGS
al Input VAT < Standard Input VAT = closed to Expense or Cost as contra account (GAIN/OTHER INCOME)

Computation:
VAT on Sale to Government XXX
1,120,000.00 VAT Rate 12%
1,000,000.00 Output VAT XXX
Output VAT 120,000.00 Less: Input Vat Purchases
Purchase Amount XXX
: Cash Receipt VAT Rate 12%
1,070,000.00 Input VAT XXX
Accounts Receivables 1,070,000.00
VAT DUE (Output-Input) XXX
Less: Creditable VAT Withheld (5%) XXX
e Withholding VAT 40,000.00 VAT STILL DUE (Refund) XXX
Accounts Receivables 40,000.00
VAT RETURNS
VAT REFUND
120,000.00
ut VAT/ Temp. Asset 16,000.00
96,000.00
40,000.00

180,000.00
96,000.00
40,000.00
VAT Payable 44,000.00

ment using Misc. Payment

44,000.00
Cash in Bank 44,000.00
1.       Sales Invoice – 100 + 12 vat = 112
a.       The Sales Invoice should be still with 12% VAT (there was a confusion that the invoice should only show 7
b.      SI – Dr. AR – 112
c.       SI – Cr. Sales – 100
d.      SI – Cr. Output VAT – 12

2.       Collection Receipt OTHERS REASON CODE

a.       Government will pay only 107 (withheld 5)
b.      CM – Dr. Final Witholding VAT – 5
c.       CM – Cr. AR – 5
d.      CR – Dr. Cash – 107
e.      CR – Cr. AR – 107

3.       VAT Payable – Let’s say input vat for this sale is 7 (12 – 8 = 4) – Actual of 5 > 4
a.       Dr. Output VAT – 12
b.      Dr. VAT Expense - 1
c.       Cr. Input VAT – 8
d.      Cr. Final Withholding VAT – 5

4.       If Final VAT > Standard VAT Payable – Let’s say input vat for this sale is 7 (12 – 8 = 4) – Actual of 5 > 4
a.       Dr. Output VAT – 12
b.      Dr. VAT Expense - 1
c.       Cr. Input VAT – 8
d.      Cr. Final Withholding VAT – 5
e.      JOURNAL VOUCHER???

5.       If Final VAT < Standard VAT Payable – Let’s say input vat for this sale is 7 (12 – 3 = 9) – Actual of 5 < 9
a.       Dr. Output VAT – 12
b.      Cr. Input VAT – 3
c.       Cr. VAT Income - 4
d.      Cr. Final Withholding VAT – 5
e.      JOURNAL VOUCHER???

Disbursement
the invoice should only show 7% VAT).

Output 12 Output Vat 12

Input 8 Cred. Vat 1
VAT Payable 4 Input Vat 8
CWVAT 5 Cred. Withholding VAT 5
-1

) – Actual of 5 > 4

) – Actual of 5 < 9
Output Vat 12
Input Vat 6
Cred. Withholding Vat 3
Vat Payable 3

Vat Payable 3
CIB 3
Purchase of Goods: NOTE:
Inventory 800,000.00 - If Actual Input VAT > Stand
Input VAT 96,000.00 - If Actual Input VAT < Stand
Cash 896,000.00
Computation:
Sale to Government (Net of VAT) 1,000,000.00 VAT on Sale to Government
VAT 12% 120,000.00 VAT Rate
Total Sales 1,120,000.00 Output VAT
Less: Input Vat Purchases
Cash 1,080,000.00
Creditable Withholding VAT 40,000.00
Sales 1,000,000.00
Output VAT 120,000.00
VAT DUE (Output-Input)
Less: Creditable VAT Withhe
OUTPUT VAT 120,000.00 VAT STILL DUE (Refund)
INPUT VAT (ACTUAL INPUT VAT) 96,000.00
VAT PAYABLE 24,000.00
CREDITABLE WITHHOLING VAT (5%) 40,000.00
VAT EXPENSE/COGS 16,000.00
Output VAT
ACTUAL INPUT VAT 96,000.00 Creditable Input VAT/Expen
STANDARD INPUT VAT (7%) 56,000.00
VAT EXPENSE/COGS 40,000.00
 Actual Input VAT > Standard Input VAT = INPUT VAT EXPENSE / COGS
Actual Input VAT < Standard Input VAT = closed to Expense or Cost as contra account (GAIN/OTHER INCOME)

T on Sale to Government 1,000,000.00

12%
120,000.00
ss: Input Vat Purchases
Purchase Amount 800,000.00
VAT Rate 12%
Input VAT 96,000.00

T DUE (Output-Input) 24,000.00

ss: Creditable VAT Withheld (5%) 40,000.00
T STILL DUE (Refund) (16,000.00)

120,000.00
editable Input VAT/Expense Acct 16,000.00
Input VAT 96,000.00
CWV 40,000.00
Purchase of Goods: NOTE:
Inventory 800,000.00 - If Actual Input VAT > Standard
Input VAT 96,000.00 - If Actual Input VAT < Standard
Cash 896,000.00

Sale to Government (Net of VAT) 1,500,000.00 Computation:

VAT 12% 180,000.00 VAT on Sale to Government
Total Sales 1,680,000.00 VAT Rate
Output VAT
Cash 1,640,000.00 Less: Input Vat Purchases
Creditable Withholding VAT 40,000.00
Sales 1,500,000.00
Output VAT 180,000.00

VAT DUE (Output-Input)

OUTPUT VAT 180,000.00 Less: Creditable VAT Withheld (
INPUT VAT (ACTUAL INPUT VAT) 96,000.00 VAT STILL DUE
VAT PAYABLE 84,000.00
CREDITABLE WITHHOLING VAT (5%) 40,000.00
GAIN/OTHER INCOME 44,000.00
Output VAT
ACTUAL INPUT VAT 96,000.00
STANDARD INPUT VAT (7%) 105,000.00
GAIN/OTHER INCOME (9,000.00)
Actual Input VAT > Standard Input VAT = INPUT VAT EXPENSE / COGS
Actual Input VAT < Standard Input VAT = closed to Expense or Cost as contra account (GAIN/OTHER INCOME)

T on Sale to Government 1,500,000.00

12%
180,000.00
ss: Input Vat Purchases
Purchase Amount 800,000.00
VAT Rate 12%
Input VAT 96,000.00

T DUE (Output-Input) 84,000.00

ss: Creditable VAT Withheld (5%) 40,000.00
T STILL DUE 44,000.00

180,000.00

Input VAT 96,000.00

CWV 40,000.00
VAT Payable 44,000.00