BULLET NOTES ON VALUE-ADDED TAX

Pro-Forma Computation
Output VAT from regular Domestic Sales and Receipts (limit P 3,000,000) xx
Output VAT from Importation (paid prior to release from Customs) xx
Output VAT from Deemed Sale Transactions xx
Output VAT from Zero-Rated Sales xx
Less:
Input VAT from Purchases of Goods (xx)
Input VAT from Importation (xx)
Input VAT from Purchases of Services (xx)
Input VAT from Deemed Sale Transactions (if not previously claimed) (xx)
Input VAT from Depreciable Capital Goods (xx)
Input VAT from TIV/ Presumptive (xx)
VAT Payable xx

Concept of VAT
 A VAT is a tax levied on the value of the products of an enterprise in the course of
its production and distribution. It is otherwise known as the tax on Mark-ups.
 It is a percentage tax imposed at every stage of the transfer of goods on sale,
exchange, barter, and the importation of goods, including transaction deemed by
law as a sale or leasing of goods or property and the performance of services in the
course of trade or business.
 It is based on the gross selling price or gross value in money or net sales when
there are sales discounts or sales returns, whichever is applicable, of the goods or
property sold, bartered, or exchanged or the gross receipts derived from the sale or
exchange of services, including the lease of goods or property, or in the case of
imported goods, on the total value of importation or its landed cost plus excise
and ad valorem tax and other charges on importation.
 “Goods or properties” are tangible or intangible objects which are capable of
pecuniary (in terms of money) estimation. Goods are movable properties. Included in
the term “properties” are real properties (land and building). The sale, barter or
exchange must take place in the Philippines, and includes exports from the
Philippines.
 “Services” means the performance of all kinds of services in the Philippines for
others for a consideration. The law enumerates what are considered sales or
exchanges of services and enumerates sales or exchanges of services that are exempt
from the value-added tax.
 “Gross receipts” means cash or its equivalent actually received or constructively
received, but not including the value-added tax, as: “Gross receipts” allows
downward adjustments for:
o Returns of, and allowances on, the contract price; and
o Discounts on the contract price.
 The value-added tax is based on “gross selling price”.
o Gross selling price means, and includes, everything that the buyer pays the
seller in order to get the goods, except the value-added tax. The law and
regulations allow reductions (and the reduced amount is still within the
meaning of “gross selling price”) for:
o Sales returns;
o Sales allowances; and
o Sales discount agreed upon at the time of the sale, indicated on the sales
invoice, and availed of by the buyer.

The Tax Rates

 The tax, applied on the gross selling price, is:
o Twelve percent (12%)
o Zero percent (0%), mainly in the case of export sales (there are others, by
provision of law).
 Vat Payable – the excess of the output tax over the allowable input tax. In the case
of importation, it is the VAT due on such importation.
 Output Tax – VAT due on the sale of taxable goods or services by any registered or
required to register under the NIRC. It is also known as Output Vat.
TAXATION BULLET NOTES – VALUE-ADDED TAX Compiled by Vhin

 Input Tax – VAT paid by a VAT registered person in the course of his trade or
business on importation of goods or local purchases of goods or services from a VAT
registered person. It is also known as Input Vat.

Who are liable?

 Any individual, trust, estate, partnership, corporation, joint venture, cooperative or
association who in the course of his trade or business:
 Sells, barters, exchanges goods or properties
 Sells or renders services
 Leases properties
 Imports goods

Sources of Output VAT

 Importation
o All importations are subject to VAT of 12%, except those exempt under Sec.
4 of RR No. 6-97.
o Importations made by a tax-exempt taxpayer shall, likewise, be exempt from
VAT. However, the subsequent purchaser, transferee or recipient who are not
tax-exempt shall pay the VAT on the imported goods as if he was the
importer.
o The tax base of imported good for VAT purposes include total value of
importation or its landed cost-plus excise and ad valorem tax and other
charges on importation.
 Sale of goods
 Tax base of VAT on sale of goods or properties
Gross Sales xx
Less:
Sales Discounts xx
Sales Returns and Allowances xx (xx)
Net Sales xx
Add: Excise Tax, if any xx
Tax Base xx

o Notes:
 Gross sales include:
 Cash
 Sales on account (open account).
 Installment
 Deemed sales (Consumption, Consignment, Distribution, Dacion
en Pago, and Retirement).
 Other amounts due from buyer such as for packaging, delivery
and insurance.
 Sales discount granted and indicated in the invoice at the time of sale
and the grant of which does not depend upon the happening of future
event may be excluded from gross sales within the same month or
quarter it was given.
 Sales returns and allowances may be deducted from the gross sales for
the month or quarter in which a refund is made or a credit memo is
issued.

 Excise tax (a business tax), if any, is included in the gross sales, while
VAT is excluded.

 Sale of Properties
o Sale of real property classified as capital asset is not subject to VAT. Such
transaction is subject to capital gains tax of 6% based on sales price or FMV,
whichever is higher.
o In general, sale of real property primarily held in the normal course of
business (inventory/ordinary asset) is subject to VAT, except:
 Residential lot with selling price of P1,500,000 and below; and
 Sale of house and lot and other residential dwellings with selling price
at P2,500,000 and below from Jan. 1, 2018 until Dec. 31, 2020, and at
P2,000,000 and below starting Jan. 1, 2021.
TAXATION BULLET NOTES – VALUE-ADDED TAX Compiled by Vhin

 Sale of real properties in the course of trade or business

 On installment plan (initial payments do not exceed 25% of the
gross selling price)

Installments received xx
Add:
Interest xx
Other charges xx xx
Tax base xx

o Note:
 Upon full payment, if the zonal or market value is higher than the total
receipts or collections, the additional VAT shall be paid accordingly.
 On cash basis or deferred payment plan (initial payments exceed 25%
of the gross selling price).
 The tax base shall be the higher between selling price stated in
the sales document and zonal or market value.
 If the gross selling price is the zonal or market value of
the real property, the zonal or market value shall be
deemed inclusive of the VAT.
 If the VAT is not billed separately, the selling price stated
in the sales document shall be deemed inclusive of the
VAT.
 Sale of Scrap Materials
o Sale of scrap such as empty drums, plastic bags, cartons, and wood crates;
obsolete inventories and fully depreciated fixed assets at a minimal prices or
lower than the purchase price are subject to VAT.
o Ordinary assets, other than inventories held for sale, which are originally
subject to depreciation are likewise subject to VAT, when sold.

 Sale of Service
o In general, all kinds of sale, exchange or supply of services rendered in the
Philippines are subject to 12% VAT, except those which are classified and
qualified as zero-rated or VAT-exempt.
o Under the situs of service criteria services performed outside the Philippines,
even if undertaken in the course of business, are beyond the scope of VAT.
o Tax Base:
 Total amount of money or its equivalent representing the contract price,
compensation service fee, rental or royalty.
 Amount charged for materials supplied, with the services and deposits
and advance payments actually or constructively received during the
taxable quarter, excluding VAT.
o VAT in Professional Fees
 As a rule, earnings from a practice of profession will be subject to VAT
if:

 The professional is a VAT-registered person; or

 A non-VAT registered but his total gross receipts exceed
P3,000,000.
 Also, aside from VAT is subject to 10% creditable withholding tax if the
aggregate amount per year is P720,000 and below, and 15% creditable
withholding tax if exceeding P720,000.
o VAT on Service Contractors
 Subject to 12% VAT.
 If the contract is with the government, the government shall withhold
final withholding VAT of 5%.
 Also subject to 2% creditable withholding tax for sale of services and
1% creditable withholding tax for sale of goods.
o VAT on Security Agency
 Agency fees are subject to 12% VAT, excluding the salary of the
guards.
 Subject to a 2% creditable withholding tax for sale of service based on
the agency fee.
TAXATION BULLET NOTES – VALUE-ADDED TAX Compiled by Vhin

 If the contract does not separate the agency fees from the salary of the
guards, the whole amount will be subjected to VAT and 2% creditable
withholding tax.
o VAT on Real Estate Brokers
 The commission income of real estate brokers are subject to VAT of
12% if he is VAT-registered or his total commission exceeds
P3,000,000 per year.
o VAT on Dealers in Securities
 Dealers in securities are subject to VAT based on their gross receipts
(gross selling price less cost of securities sold).
o VAT on Lending Investors
 Lending investors includes all persons, not include banks (depository
and savings), non-bank financial intermediaries, finance companies, and
other financial intermediaries not performing quasi-banking.
 Subject to VAT of 12% on their interest incomes.
 Does not include banks, other financial intermediaries performing
quasi-banking functions and pawnshops.
o VAT on Transportation Services
 Subject to VAT of 12% on:
 Transport of goods and cargoes whether by land, air and sea.
 Transport of passengers by air and sea.
 Transport of passengers by land are subject to 3% OPT.
o VAT on Lessor of Commercial and Residential Units
 If the monthly rent per unit does not exceed P15,000, regardless of the
aggregate amount, the lessor is exempted from VAT and OPT.
 If the monthly rent per unit exceeds P 15,000, but the aggregate
amount does not exceed P3,000,000, the lessor is only subject to OPT,
not to VAT.
 If the monthly rent per unit exceeds P 15,000 and the aggregate
amount does exceed P3,000,000, the lessor is only subject to VAT.

 Deemed Sale Transactions (CCDDR)

o Transfer, use or consumption not in the course of trade or business of goods or
properties originally intended for sale or for use in the course of trade or
business.
o Consignment of goods if not sold within 60 days following the date of
consignment.
o Distribution or transfer to creditors in payment of debt or dacion en pago.

o Distribution or transfer to shareholders or investors as share in the profit.

o Retirement from or cessation of business or incorporation of single
proprietorship with respect to all goods on hand, whether capital goods, stock
in trade, supplies or materials, as of the date of such retirement, cessation or
incorporation.

Notes:
 The tax base for deemed sale transactions would be the lower of (a)
acquisition cost or (b) the current market price. Where the gross
selling price is unreasonably lower than the actual market value, the
appropriate tax base shall be determined by the Commissioner.
 The gross selling price is unreasonably lower than the actual market
value if it is lower by more than 30% of the actual market value of the
same goods of the same quantity or quantity sold in the immediate
locality on the nearest date of sale.
o Transfer of assets as a result of merger or consolidation are not considered as
deemed sale However, the unused input tax of the dissolved corporation, as of
the date of merger or consolidation, shall be absorbed by the surviving
corporation.
TAXATION BULLET NOTES – VALUE-ADDED TAX Compiled by Vhin

 Zero-Rated Sales
o Export Sales
 The sale and actual shipment of goods from the Philippines to a foreign
country.
 Sale of goods, supplies, equipment and fuel to persons engaged in
international shipping or international air transport operations provided,
that these services shall be exclusively for international shipping or
air transport operations.
 Transport of passengers and cargo by domestic air or sea vessels from
the Philippines to a foreign country.
 Sale of power or fuel generated through renewable sources of energy
such as, but not limited to, biomass, solar, wind, hydropower,
geothermal, ocean energy, and other emerging energy sources using
technologies such as fuel cells and hydrogen fuels.

o Effectively zero-rated sales

 Effectively zero-rated sales of goods and properties shall refer to the local
sale (constructive export) by a VAT-registered person to a person or
entity who was granted indirect tax exemptions under special laws or
international agreement, such as:
 Sale to Asian Development Bank (ADB).
 Sale to International Rice Research Institute (IRRI).
 Sale to duly registered and accredited enterprises with Subic Bay
Metropolitan Authority (SBMA).
 Sale to duly registered and accredited enterprises with Philippine
Economic Zone Authority (PEZA).

Sources of Input VAT

 Importation and Domestic Purchase of Goods

o Goods for sale.
o Goods for conversion into finished product (including packaging materials).
o Goods for use as supplies.
o Goods for use as materials supplied in the sale of services.
o Goods for use in trade or business for which depreciation or amortization is
allowed
o Transactions deemed sale (CCDDR).

o In case of importation, an input tax may be claimed for the importation of

goods for business use by a VAT-registered taxpayer. Input tax paid by a
non-VAT person, whether for personal or business use, are not creditable.
Also, input VAT paid by a VAT registered on goods imported for personal use
are not creditable.

 Purchase of Services
 Purchase of Capital Goods
o Claim for input tax on depreciable goods:
 Applies only to domestic purchase or importation of capital goods
subject to depreciation for income tax purposes.
 Where the aggregate acquisition cost (exclusive of VAT) of depreciable
capital goods during any calendar month does not exceed P1,000,000,
the total input tax is creditable against output tax in the month acquired
(Outright Credit).
 Where the aggregate acquisition cost (exclusive of VAT) of depreciable
capital goods during any calendar month exceeds P1,000,000, the total
input tax is creditable against output tax, as follows:
 Spread evenly over 60 months (starting in the calendar month
acquired) the input tax, if the estimated useful life of the
depreciable capital good is 5 years or more.
 Amortization of input VAT shall only be allowed until December
31, 2021. After such date, taxpayers with unutilized input VAT on
capital goods purchased or imported shall be allowed to apply the
same as scheduled until fully utilized
TAXATION BULLET NOTES – VALUE-ADDED TAX Compiled by Vhin

 Zero-Rated Sales
o The input VAT may be claimed for tax refund, the claim of which shall be filed
and made within 2 years from the close of the quarter when such sales are
made.

 Presumptive Input VAT

o Persons or firms who can avail:
 Processor of sardines, mackerel and milk (SaMaMi).
 Manufacturer of refined sugar, cooking oil and packed noodle-based
instant meal (CoPaRe).
o Basis of presumptive input tax - Gross value in money of purchases of
primary agricultural products used as inputs in the processing or
manufacturing of SaMaMiCoPaRe.
o Rate of presumptive input tax – 4%.

 Transitional Input VAT

o Persons who can avail:
 Persons who become liable to VAT for the first time.
 Persons who elect to be VAT-registered.
o Basis of transitional input tax - Beginning inventory of VAT-subject goods,
materials and supplies.
o Transitional input tax allowed - The higher between:
 2% of the VAT-subject beginning inventory value for income tax
purposes; and
 Actual VAT paid on such beginning inventory.

 Standard Input VAT (Sale to Government)

o The sale to Government or its political subdivision by VAT-registered person
shall be subject to 12% VAT, provided that:
 The government shall withhold 5% final withholding VAT upon payment
to the VAT registered person;

 The VAT-registered person may claim a Standard Input VAT of 7%

against its output VAT from the sale to government. The Actual Input
VAT attributable to sales of goods and services to the government shall
not be credited against the Output VAT arising from sales to non-
government entities.

Excess output or input taxes

 If at the end of any taxable month or quarter the output tax exceeds the input tax,
the difference is VAT payable (current liability).
 If the input tax at the end of any taxable quarter (inclusive of input tax carried over
from the previous quarter) exceeds the output tax, the excess input tax (current
asset) shall be carried over to the succeeding taxable month or quarter, provided
that any input tax attributable to zero-rated sales by a VAT-registered person may at
his option be refunded.
 Input taxes on zero-rated sales of goods, properties or services
o The input taxes on zero-rated sales of goods, properties or services may at the
option of the VAT-registered person be:
 Refunded (within 2 years after the close of the quarter when such sales
were made); or
 Applied against the output tax of domestic sales.
 Period within which to refund
o Refund or tax credit certificate shall be granted within 120 days from the date
of submission of complete documents.
o If the Commissioner fully or partially denies the application for VAT refund or
issuance of tax credit certification (TCC) on the expiration of 120-day period,
the taxpayer may appeal to the Court of Tax Appeals within 30 days from
the receipt of the denial; otherwise, the decision will become final.
o Failure on the part of any official, agent, or employee of the BIR to act on the
application within the 90-day period shall be punishable under Section 269 of
the Tax Code (administrative fine and imprisonment).
TAXATION BULLET NOTES – VALUE-ADDED TAX Compiled by Vhin

 Manner of giving refunds

o Refunds shall be made upon warrants drawn by the Commissioner of Internal
Revenue or by his authorized representative without the necessity of being
countersigned by the COA Chairman.

Exempt Transactions
 Sale or importation of agricultural and marine food products in their original state,
livestock and poultry of a kind generally used as, or yielding or producing foods for
human consumption; and breeding stock and genetic materials therefor.
 Products classified under this paragraph shall be considered in their original state
even if they have undergone the simple processes of preparation or preservation for
the market, such as freezing, drying, salting, broiling, roasting, smoking or
stripping. Polished and/or husked rice, corn grits, raw can sugar and molasses, and
ordinary salt shall be considered in their original state.
 Sale or importation of fertilizers seeds, seedlings and fingerlings; fish, prawn,
livestock and poultry feeds, including ingredients, whether locally produced or
imported, used in the manufacture of finished feeds (except specialty feeds for race
horse, fighting cocks, aquarium fish, zoo animals and other animals generally
considered as pets).
 Importation of personal and household effects belonging to the residents of the
Philippines returning from abroad and nonresident citizens coming to resettle in the
Philippines: Provided, that such goods are exempt from customs duties under the
Tariff and Customs Code of the Philippines.
 Importation of professional instruments and implements, tools of trade, occupation
or employment, wearing apparel, domestic animals, and personal and household
effects belonging to persons coming to settle in the Philippines or Filipinos or their
families and descendants who are now residents or citizens of other countries, such
parties hereinafter referred to as overseas Filipinos, in quantities and of the class
suitable to the profession, rank or position of the persons importing said items, for
their own use and not for barter or sale, accompanying such persons, or arriving
within a reasonable time Provided, That the Bureau of Customs may, upon the
production of satisfactory evidence that such persons are actually coming to settle in
the Philippines and that the goods are brought from their former place of abode,
exempt such goods from payment of duties and taxes. Provided, further, that vehicles,
vessels, aircrafts, machineries and other similar goods for use in manufacture, shall
not fall within this classification and shall therefore be subject to duties, taxes and
other charges
 Services subject to percentage tax under Title V.
 Services by agricultural contract growers and milling for others of palay into rice,
corn into corn grits and sugar cane into raw cane sugar.
 Medical, dental, hospital and veterinary services except those rendered by
professionals.
 Educational services rendered by private educational institutions, duly accredited
by the Department of Education (DepEd) and the Commissioner on Higher Education
(CHED), the Technical Education and Skills Development Authority (TESDA) and
those rendered by the government educational institutions.
 Services rendered by individuals pursuant to an employer-employee relationship.
 Services rendered by regional or area headquarters established in the Philippines by
multinational corporations which act as supervisory, communications and
coordinating centers for their affiliates, subsidiaries or branches in the Asia-Pacific
Region and do not earn or derive income from the Philippines.
 Transactions which are exempt under international agreements to which the
Philippines is a signatory or under special laws except those under P.D. No. 529.
 Sales by agricultural cooperatives duly registered with the Cooperative
Development Authority to their members as well as sale of their produce, whether in
its original state or processed form, to non-members (if the producer of the
agricultural products sold is the cooperative itself); their importation of direct farm
inputs, machineries and equipment, including spare parts thereof, to be used directly
and exclusively in the production and/or processing of their produce.
 Gross receipts from lending activities by credit or multi-purpose cooperatives duly
registered with Cooperative Development Authority.
 Sales by non-agricultural, non-electric and non-credit cooperatives duly registered
with the Cooperative Development Authority; Provided, that the share in capital
TAXATION BULLET NOTES – VALUE-ADDED TAX Compiled by Vhin

contribution of each member does not exceed P15,000 and regardless of the
aggregate capital and net surplus ratably distributed among the members.
 Export sales by persons who are not VAT-registered.
 Sale of real properties not primarily held for sale to customers or held for lease in
the ordinary course of trade or business, or real property utilized for low-cost and
socialized housing as defined by Republic Act No. 7279, otherwise known as the
Urban Development and Housing Act of 1992, and other related laws, residential
lot valued at P1,500,000 and below, house and lot, and other residential dwellings
valued at P2,500,000 and below.

Beginning January 1, 2021, the VAT exemption shall not anymore apply to -
o Sale of low cost housing
o Sale of residential lot
The threshold selling price amount for sale of house and lot, and other residential
dwellings shall be P2,000,000.

 Lease of residential unit with a monthly rental not exceeding P15,000.

 Sale, importation, printing or publication of books and any newspaper, magazine,
review or bulleting which appears at regular intervals with fixed prices for subscription
and sale and which is not devoted principally to the publication of paid
advertisements.
 Sale, importation or lease of passenger or cargo vessels and aircraft, including
engine, equipment and spare parts thereof for domestic or international transport
operations.
 Importation of fuel, goods and supplies by persons engaged in international
shipping or air transport operations.
 Services of banks, non-bank financial intermediaries performing quasi-banking
functions, and other non-bank financial intermediaries, such as money changers and
pawnshops.
 Sale or lease of goods and services to senior citizens and persons with disabilities.
 Transfer of property in merger or consolidation [under Section 40 ( 2 of the
NIRC/tax-free exchange].
 Association dues, membership fees, and other assessments and charges collected by
homeowners associations and condominium corporations.
 Sale of gold to the Bangko Sentral ng Pilipinas.
 Sale of drugs and medicines prescribed for diabetes, high cholesterol, and
hypertension beginning January 1, 2019.
 Sale or lease of goods or properties or the performance of services other than the
transactions mentioned in the preceding paragraphs, the gross annual sales and/or
receipts do not exceed the amount of P 3,000,000.

For purposes of the threshold of P3,000,000, the husband and the wife shall be
considered as separate taxpayers. However, the aggregation rule for each taxpayer
shall apply, for instance, if a professional, aside from the practice of his profession,
also derives revenue from other lines of business which are otherwise subject to VAT,
the same shall be combined for purposes of determining whether the threshold has
been exceeded. Thus, the VAT exempt sale shall not be included in determining the
threshold.

A VAT registered person may elect that the above exemptions not apply to his sale
of goods or properties or services: Once the election is made, it shall be irrevocable
for a period of three (3) years counted from the quarter when the election was made
except for franchise grantees of radio and TV broadcasting whose annual gross
receipts for the preceding year do not exceed P10,000,000 where the option becomes
perpetually irrevocable.
TAXATION BULLET NOTES – VALUE-ADDED TAX Compiled by Vhin

Administrative Requirements

 Return and payment of VAT

o In general, VAT return shall be filed and the tax due thereon be paid within 25
days following the close of each taxable quarter.
o VAT-registered persons shall declare and pay VAT on a monthly basis, not
later than the 20th day following the close of each of the first two months
of a taxable quarter; taxpayers under the EFPS, on or before a prescribed due
date based on the business industries classification.
 Persons whose registration has been cancelled
o Any person whose registration has been cancelled shall file a return and pay
the tax due thereon within 25 days from the end of the month the business
ceases to operate or when VAT registration has been officially cancelled.
o Only one consolidated return shall be filed for the principal place of business
or head office and all branches.

 Where to file the return and pay the tax - In any one of the following located within
the revenue district where the taxpayer is registered or required to register:
o Authorized agent bank.
o Revenue collection officer.
o Duly authorized city or municipal treasurer.

Mandatory VAT registration

 The following are required to register for VAT;
o Any person whose gross sales or receipts for the past 12-months, other than
those that are exempt, have exceeded P3,000,000.
o There are reasonable grounds to believe that his gross sales or receipts for the
next 12 months, other than those that are exempt, will exceed P3,000,000.
o Franchise grantees of radio and/or television broadcasting, whose gross
annual receipts for the preceding calendar year exceeded P10 million shall
register within 30 days from the end of the taxable year.

Penalty for failure to register as VAT taxpayer

 He shall be liable to pay the tax as if he was a VAT registered person, but he cannot
avail of the benefits of input tax credit for the period he was not properly registered.

Optional VAT registration for VAT exempt persons

 Any person whose sale or lease of goods or properties or the performance of services,
other than the exempt transactions, the gross annual sales or receipts do not exceed
P3,000,000 may, in relation to 4.109-2, elect to be VAT registered by registering
with the RDO that has jurisdiction over the head office of the person, and pay the
annual registration fee of P500 for every separate and distinct establishment;
 Once the election is made, it shall be irrevocable for a period of three (3) years
counted from the quarter when the election was made except for franchise grantees of
radio and TV broadcasting whose annual gross receipts for the preceding year do not
exceed P10,000,000 where the option becomes perpetually irrevocable.

Registration of non-VAT or exempt taxpayers

 Every person, other than those required to be registered as VAT persons, engaged in
any business, shall, on or before the commencement of his business, or whenever he
transfer to another revenue district, register with the RDO concerned within 10
days from the commencement of business or transfer and shall pay the applicable
registration fee of P500 for every separate or distinct establishment or place of
business, if he has not paid the registration fee in the beginning of the taxable year.

1. VAT exempt persons under Section 109 of the Tax Code who did not opt to register
as VAT taxpayers.
2. Individuals engaged in business where the gross sales or receipts do not exceed
P100,000 during any 12-month period. They are required to register but will not
made to pay the registration fee of P500.
3. Non-stock, non-profit organizations and associations engaged in trade or business
whose gross sales or receipts do not exceed P3,000,000 for any 12-month period.
TAXATION BULLET NOTES – VALUE-ADDED TAX Compiled by Vhin

4. Cooperatives other than electric cooperatives. However, they are not required to
pay the registration fee imposed under these Regulations.
5. Radio and TV broadcasting whose gross annual receipts do not exceed P10 million
and which do not opt to be VAT-registered.
6. PEZA and other eco-zone registered enterprises enjoying the preferential tax rate of
5% in lieu of all taxes.

Date of Registration – On or before the 31st day of January of every year.

Annual Registration Fee – P500 for every separate or distinct establishment or place of
business, including facility types where sales transactions occur, before the start of such
business and every year thereafter.