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Vatable Sales

This document discusses output VAT (value-added tax) calculations for non-VAT taxpayers and VAT-registered taxpayers in the Philippines. It explains that non-VAT taxpayers pay a 3% tax, while VAT-registered taxpayers calculate output VAT at 12% on taxable goods, services, and real properties, and can claim input VAT credits to determine their final VAT due. The sources of output VAT and various deemed sale scenarios triggering output VAT are also outlined.

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106 views1 page

Vatable Sales

This document discusses output VAT (value-added tax) calculations for non-VAT taxpayers and VAT-registered taxpayers in the Philippines. It explains that non-VAT taxpayers pay a 3% tax, while VAT-registered taxpayers calculate output VAT at 12% on taxable goods, services, and real properties, and can claim input VAT credits to determine their final VAT due. The sources of output VAT and various deemed sale scenarios triggering output VAT are also outlined.

Uploaded by

biadnescydchary
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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VATABLE SALES/RECEIPTS

1. NON-VAT TAXPAYERS – (3% OPT) – except for cooperatives and individuals opting 8% commutative tax.
2. VAT-REGISTERED TAXPAYERS

OUTPUT VAT (12%) XX


LESS: INPUT VAT (XX)
VAT DUE XX
LESS: TAX CRDT (XX)
VAT STILL DUE XX

SOURCES OF O-VAT: (12%)


a. VATABLE GOODS = 12% SP, except when SP is unreasonably lower, base it 12% of FV
= unreasonably lower (SP/FV less than 70% or discount is more than 30%)
= goods > if SP only not exclusive but if Invoice Price is INCLUSIVE

b. VATABLE SERVICES = 12% OF GROSS RECEIPTS

c. VATABLE REAL PROPERTIES = 12% OF GROSS SELLING PRICE


= GSP > SP or FMV w/c is higher
= FMV > ZONAL or ASSESSOR’S FV (highest)

Is the FV exclusive or inclusive of vat? EXCLUSIVE.

OUTPUT VAT = FV x 12%


Is gross SP exclusive or inclusive of vat? INCLUSIVE.
OUTPUT VAT = SP X 12/112

d. TRANSACTIONS DEEMED SALE (for VATABLE goods/kind) = 12% of FV


(FV – determined by CIR)

d.1. Consumption not in the ordinary course of business – usage/disposal of ordinary assets
other than their normal use. (Ordinary Asset >> held for sale or held for use)
>> 12% of FV

ex. Dation in Payment, property dividends, withdrawal for personal use, exchange of property

d.2. Retirement or cessation of business (the moment a business is dissolve it is deemed sale)
>> 12% of FV or BV w/c is LOWER

Ex. Sole Prop >> Partnership >> Corp. (deemed sold – SP & Partnership)
But for Corp. >> Corp. (MERGER/CONSO) – NOT CONSIDERED DEEMED SALE

d.3. Cancellation of VAT Status

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