Professional Documents
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Primarily: You can avail of the tax credit where you can deduct input vat from
your output vat.
What if you were non-vat registered and your sales for the year exceeded
1,919,500.
You are mandatorily covered under the vat law and because you did not
register then the BIR do not expect you to charge 12% to your customers but only
the least of 3% sales tax which is an OPT. The consequence thereof if the BIR will
find out then it will collect from you the 12% output VAT even if you did not charge it
from your customers other than the 12% output vat, the BIR will have to collect the
3%OPT. Not to mention the surcharges, penalties and the consequence na pwd
ipa.close imu business.
When you register under VAT law then you should follow the requirements thereof
(issue a vat official receipt- with proper heading, specify the tax collected etc.)
Formula:
Output Tax
Less: Input Tax
VAT Payable/(Excess Input Tax)
VAT Carry over/Forward when Input is greater than Output
Sir! Pwede ba mag.refund? Under rare circumstances. Usually the VAT refund will
happen when the business will be closing. Because in so far as the BIR is concern,
they are in collecting of taxes and not of giving refunds.
Non-Vat transaction:
Export Sale
Foreign Currency Denominated
Sale to persons or entities whose exemption under special laws or
international agreements to which the Philippines is a signatory effectively
subjects such sales to 0% rate.
Automatic VAT zero rated Transaction - by its very nature following the
Destination Principle or Cross Border Doctrine subject to 0% vat or no 12%
VAT.
Effectively VAT zero rated transaction - it doesnt qualify as exempt from tax
or subject to 0% vat under the destination principle but because it is provided
under the law or special law then it is effectively (as if) subject to 0% VAT.