Professional Documents
Culture Documents
Elements of VAT
2. There must be sale, exchange, barter, lease etc -Can be recovered as tax credit if shouldered by seller
OUTPUT TAX
-Seller is not allowed for any tax refund on input taxes from his
suppliers- should be considered cost
VAT ON IMPORTATION
-Excise tax forms part of gross selling price Foreign currency denominated sale
3. Transfer or used not in the course of business originally intended FF ARE ZERO RATED SERVICES TRANSACTION
for sale
1. Export
2. Services rendered to a person engaged in int’l shipping/ air If supplier erroneously impose VAT on goods sold to entity within
transport including lease of property separate custom duty; Remedy
3. Transport of passenger by cargo/air from ph to foreign country -Purchaser go after seller andnot gov’t bcus seller is the one
statutorily liable
4. Sale thru renewable resources
- Seller shall not bill output tax to customers, hence seller not -To benefit the newly VAT registered person
allowed to any refund
F. Packed noodle
ECOZONES
-Considered foreign territory hence not taxable importation ff the
destination principle
WITHOLDING CREDITABLE VAT;2 instances
-Does not cover petrol products (still taxable)
1. Sale to gov’t: 5%
- considered cost
If actual input vat attributable to sales to gov’t exceed 7% of gross
payments
-Excess may form part of seller’s expense -No benefit of input tax credit
-within 2 yrs
RETURN AND PAYMENT OF VAT
-Reckoned from the time of the relevant sale was made in every
-File quarterly return of his quarterly gross sales within 25 day
close of taxable quarter
following the close of taxable quarter
-Every taxpayer not subject to VAT but subject to excise/ percentage 3. Body enhancement
tax must register also
Exclusion:
If person who is mandated to register does nor register; liable for
- Noninvasive cosmetic procedure and surgeries
- Payment of VAT as if VAT registered
PERSON LIABLE FOR EXCISE TAX Nonstock/nonprofit is liable for VAT as long as they charges fee
1. Importer
SEC OF FINANCE POWER Affiliate who provides funds to pay 3rd person, transaction is
not subject to VAT bcus mere dole-out
-Affirm, revise, modify rulings and issuance of BIR /CIR
CIR POWER Once goods are introduced in Ph from ecozones, they are not
subject to VAT - Technical Importation
1. Conduct inventory
2. Decide disputes
VAT system generally follows destination principle - exports are
3. Delegate power to assess 0 tax while imports are taxed except: foreign currency denominated
sale
4. Interpret NIRC
BEST EVIDENCE OBTAINABLE Application for VAT Refund must be accompanied by complete
supporting document, under oath. If not complete- denied.
- When tax report is required but cannot be obtained