Credits for Input Taxes and Excess Output or Input Tax
SEC. 110, NIRC. Tax Credits. – A. Creditable Input Tax. – (1) Any input tax evidenced by a VAT invoice or official receipt issued in accordance with Section 113 hereof on the following transactions shall be creditable against the output tax: (a) Purchase or importation of goods: (i) For sale; or (ii) For conversion into or intended to form […]
VAT on Government Transactions and Withholding of Creditable Value-Added Tax
Government as buyer of goods / services: Government like any ordinary buyer pays for VAT that is passed on by VAT seller of goods and services Sale of goods and services to government is subject to 12% VAT Government shall, for each payment, deducts and withholds CREDITABLE VAT of 5% from its gross payment […]
Return and Payment of Value-Added Tax
SEC. 114, NIRC. Return and Payment of Value-Added Tax. – (A) In General. – Every person liable to pay the value-added tax imposed under this Title shall file a quarterly return of the amount of his gross sales or receipts within twenty-five (25) days following the close of each taxable quarter prescribed for each taxpayer: Provided, […]
Invoicing and Accounting Requirements for VAT-Registered Persons
SEC. 113,NIRC. Invoicing and Accounting Requirements for VAT-Registered Persons. – (A) Invoicing Requirements. – A VAT-registered person shall issue: (1) A VAT invoice for every sale, barter or exchange of goods or properties; and (2) A VAT official receipt for every lease of goods or properties, and for every sale, barter or exchange of services. (B) Information […]
VAT on Domestic/Local Goods and Deemed-Sales Transactions
VAT on Sale of Goods or Properties Section 4.106-1, RR 16-2005 as amended by RR 4-2007. VAT on Sale of Goods or Properties VAT is imposed and collected on every sale, barter, exchange, or transactions “deemed sale” of taxable goods or properties at the rate of 12% (starting Feb 1, 2006) of the gross […]