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RDO 99, Malaybalay City, Bukidnon
Tax Updates 2012
Major Tax Updates

Income Tax
Forms

VAT Threshold



Invoicing
Require
ments


SLSP



Increase in Value-Added
Tax Threshold
RR 16,2011,RR 3-2012
Exemption from VAT under Section 109 (V) of the Tax
Code, as amended
Sale or lease of goods or
properties or the performance of goods or
the performance of services other than
transactions mentioned in the preceding
paragraphs, the gross annual sales and/or
purchases do not exceed One Million Nine
Hundred Nineteen Thousand Five
Hundred Pesos (P 1,919,500.00)
Section 109 (V): Sale or lease of goods or properties and
Performance of Services
Section 109 (P) and 109 (Q)
Section Amount in
Pesos
(2005)
Adjusted
threshold
amounts
Section 109 (P) –sale of
residential Lot
1,500,000 1,919,500
Section 109 (P) –sale of
residential house and lot or
other residential
dwellings
2,500,000 3,199,200
Section 109 (Q) –
lease of residential
unit
10,000 12,800
Rules in determination of threshold
• Husband and wife are considered
separate taxpayers
1
• Include the aggregate gross receipts
from all taxable lines of activity
and/or all establishments (head
office/ branches)
2
• VAT-Exempt Sales shall not be
included in determining the
threshold
3





SEPARATE INVOICING FOR
VAT TAXPAYERS
Revenue Regulations 18-2011, Section 237 of the Tax Code, as amended.
Basic Invoicing Requirements
• Issue sequentially Official
Receipt (OR) for performance
of service

• Invoice for sale of goods

• Each OR/Invoice issued shall
indicate the name and address
of the client, date of
transaction, nature of service
rendered and the amount.
Basic Invoicing Requirements
• .
The OR shall be accomplished
at least in duplicate

• The duplicate retained &
preserved in place of
business for 3 years from
close of taxable year.
Sample of Non-VAT receipt
Proper Invoicing and receipting of output tax (RR 18-
2011)
Reiterates Sec. 237 of
the Tax Code that VAT-registered
taxpayers should separately bill
the VAT.

The amount shall be
shown as a separate item in the
invoice or receipt
Ex: If the amount charged is P560.00, it shall be
presented in the following manner:

Professional Fee (P560.00/112%) P 500.00
Add:12% VAT (12% of P500.00) 60.00
Total Amount charged P 560.00



It’s not just about the visuals, but strengthening
Wrong
It’s not just about the visuals, but strengthening
YOUR MESSAGE.
Particulars
Service Fee P1,124.10
12% VAT 134.90
Total P1,259.00
Correct
Penalty for non-compliance

– for each act or omission, be punished by a
fine of not less than P1,000.00 but not more
than P50,000.00

and

– suffer imprisonment of not less than two
(2) years but not more than four (4) years.
Importance of asking
receipts/invoices
To support input tax claims

Will facilitate audit trail
To ascertain that sales transactions are
properly recorded
Corresponding taxes are paid

To support business purchases/expenses





Mandatory submission of
SLSP for all VAT taxpayers
Revenue Regulations 16-2005, Revenue Regulations 1-2012
RR 1-2012: submission of quarterly SLSP

(1) Persons Required to Submit Summary List of
Sales.---All persons liable for VAT such as
manufacturers, wholesalers, service providers, among
others are required to submit Summary List of Sales .

(2) Persons Required to Submit Summary List of
Purchases.---All persons liable for VAT such as
manufactures, service providers, among others are
required to file Summary List of Purchases.
Summary List of Sales information
Regular Customers( engaged in business/profession & transacted at least six
transactions regardless of amount in PY or CY) and casual customers with
gross purchases of 100,000 or more in the present/current year
Casual
Customers
Casual
Customers
of 100K or
more
Regular
Customer
s
Information needed to be reflected in SLS
1. BIR-registered name of the buyer who is
engaged in business/exercise or
profession;
2. TIN of the buyer;
3. Exempt Sales;
4. Zero-rated sales;
5. Sales subject to VAT (exclusive of VAT);
6. Sales Subject to Final VAT;
7. Output Tax (VAT on sales subject to 12%)
Information needed to be reflected in SLP
1. BIR-registered name of the seller/supplier/service-
provider;
2. TIN of the seller;
3. Exempt Purchases;
4. Zero-rated Purchases;
5. Purchases subject to VAT services,on capital
goods,goods other than capital goods (exclusive of
VAT)
Purchases Subject to Final VAT withheld
6. Input tax (Non Creditable & Creditable)
SLSP Submission rules
• Submitted through CD on or before
25
th
day of the month following the
close of taxable quarter
1
• Format prescribed under Revenue
Regulations 16-2005
(Excel,Taxpayer’s own program,
Data entry module)
2
• Non-submission is subject to
penalty
3

STOP FILER CASES


– Can be detected by our system (Integrated
Tax System- Case Monitoring)

– Such stop-filer case shall remain open until
the corresponding return is duly filed and
paid including penalties.



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by: Maricel D. Arthur,CPA

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