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Vat Payable and Compliance

The document discusses VAT payable and compliance requirements including output VAT, input VAT, tax credits, tax payments, and alternative treatments for overpayments. It provides examples of advanced VAT payments and notes the prescriptive period for refund or tax credit claims is two years from the close of the taxable quarter when zero-rated sales were made.

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Anjelica J. Ogoy
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29 views3 pages

Vat Payable and Compliance

The document discusses VAT payable and compliance requirements including output VAT, input VAT, tax credits, tax payments, and alternative treatments for overpayments. It provides examples of advanced VAT payments and notes the prescriptive period for refund or tax credit claims is two years from the close of the taxable quarter when zero-rated sales were made.

Uploaded by

Anjelica J. Ogoy
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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UNIVERSITY OF CALOOCAN CITY Topic: VAT payable and

Camarin Campus compliance requirements

VAT Model

OUTPUT VAT P XXX


Less: Creditable input VAT XXX
Net VAT payable XXX
Less: Tax credits/Payments XXX
Tax still payable P xxx

Source tax credit/payment


1. VAT paid in the previous two months - for quarterly VAT returns
2. VAT paid in return previously filed, in the case of amended return
3. Advanced payments made to the BIR
4. Final withholding VAT on sales to the government(changed to Creditable
starting January 2021 refer to Input VAT notes)
5. Advanced VAT on certain goods

 Technically, advanced VAT is not an input VAT and not included as part the
allowable input VAT. It is an advanced payment which is a deduction after
the net VAT payable is determined. However, unutilized advanced VAT in the
period may form part of the "Input VAT carry-over" if opted by the taxpayer.
 Advanced VAT on the sale of sugar
 Purchase of wheat by flour millers from traders/wheat imported by
millers
 Advanced VAT on the transport of naturally grown and planted timber
products.

Tax Still due


The resultant "Tax still payable" in the VAT return is paid to the government as
follows:
 1st month of the quarter - within 20 days from the end of the month
 2nd month of the quarter - within 20 days from the end of the month
 3rd month of the quarter - within 25 days from the end of the quarter

Alternative treatment on certain overpayments


1. Overpayments arising from input VAT on zero-rated sales
a. tax refund
b. tax credit against other internal revenue taxes
Prescriptive period for claim for refund or tax credit The two-year prescriptive
period for the claim for refund or tax credit is counted from the close of the
taxable quarter when the zero-rated sales were made, not from the date of payment
of the VAT (CIR vs. Mirant Pagbilao Corporation, G.R. No. 172129, September
2008).

2. Overpayments arising from advanced input VAT

Advanced VAT payments which remain unutilized at the end of the taxpayer's
taxable year when advanced payment was made, and which is tantamount to excess
payment may, at the option of the owner/seller/taxpayer or importer/miller
/taxpayer, be available for the issuance of a tax credit certificate (TCC).
UNIVERSITY OF CALOOCAN CITY Topic: VAT payable and
Camarin Campus compliance requirements

Exercises
UNIVERSITY OF CALOOCAN CITY Topic: VAT payable and
Camarin Campus compliance requirements

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