Presented by:
LEMUEL C. DUADUA
Revenue Officer I
RDO 112 Tagum City
Topic Outline
REFERENCES :
TITLE IV of the NIRC Sec. 105 to 115
Under Republic Act 9337 and its implementing
regulations/issuances to wit:
RR 16 - 2005
RR 2 2007
RR 4 2007
Other related revenue orders and circulars
What is VAT?
It is a tax on the value added to the purchase
price or cost in the sale or lease of goods,
properties, or services in the course of trade or
business.
It is an indirect tax and the amount of tax may
be shifted or passed on to the buyer, transferee
or lessee of the goods, properties or services.
TRANSACTIONS COVERED
Sale or Exchange of Goods / Properties
Importation
Sales or Exchange of Services
Transaction Deemed Sales
Zero-Rated Sales of Goods /
Properties / Services
Effectively Zero-Rated Transactions
BASIS OF VAT
Sale of Goods
BASIS OF VAT
on Importation (Sec. 107)
If based on VALUE
TOTAL VALUE used by the BOC in determining:
Tariff plus custom duties and excise taxes, if any;
Other charges paid by the importer (prior to ATRIG)
10
BASIS OF VAT
Sale of Service and Lease of Property
Gross Receipts
refers to the total amount of money or its equivalent
representing the contract price,
compensation, service fee, rental or royalty,
including the amount of charged for materials
supplied with the services ,
deposits applied as payments for services rendered,
and
advance payments actually or constructively received
11
(Sec.
106 B)
12
13
14
Zero-rated sales
15
16
VAT Rates:
17
VAT Payable
-
P xx
-
P x
Output Tax
18
Sales
VAT Rate
Output tax-
P100,000.00
-
12%
P 12,000.00
19
INPUT TAX
Is the value added tax due from or paid by a VATregistered person in the course of his trade or
business.
Input Tax
For sale; or
For conversion into or intended to form part of a
finished product for sale including packaging
materials; or
For use as supplies in the course of business; or
For use as materials supplied in the sale of service;
or
For use in trade or business for which deduction for
depreciation / amortization is allowed under the
Tax Code
21
22
23
VAT Payable
24
Output Tax
P 12,000.00
2,329.71
2,400.00
VAT Payable
7,270.29
25
26
27
28
VAT on Government
Transaction
Sale of goods and services to government is
subject to 12% VAT;
The 5% VAT withheld represents the net VAT
payable of the seller
The remaining 7% effectively accounts for the
standard input tax in lieu of the actual input VAT
29
VAT on Government
Transaction
VAT on Government
Transaction
30
VAT Payable
14,000.00
P 10,000.00
-0-
10,000.00
31
32
Input Tax
Creditable
Input Tax
Creditable *
Taxable sales 0%
Total sales
Input Tax
Refundable
Exempt sales
Total sales
X Input Tax
Expense or cost
34
35
Accounting Requirements
All persons subject to VAT shall in addition
to regular accounting records, maintain
the following:
SUBSIDIARY SALES JOURNAL
SUBSIDIARY PURCHASE JOURNAL
36
Filing of Return
MONTHLY RETURN (2550M)
every 20th day of the following the close of each month; and
QUARTERLY RETURN (2550Q)
- every 25th day following the close of each taxable quarter.
Any person, whose registration has been CANCELLED
within 25 days from the date of cancellation of registration
SCHEDULE OF STAGGERED
FILING OF RETURNS for EFPS FILERS (RR 26-2002)
37
GROUP
A
24 days
-do-
23 days
-do-
22 days
-do-
21 days
38
Submission of SLS/SLP
RR 1-2012
All persons liable to VAT such as manufacturers,
wholesalers, service-providers, among others are
required to submit;
Summary List of Sales
Summary List of Purchases
39
Electronic submission
Thru efps
Manually
Use of removable storage media
3.5 inch floppy diskette
USB flash drive
CD
DVD
(Sec109 of
NIRC)
(Sec109 of
NIRC)
(Sec109 of
NIRC)
(Sec109 of
NIRC)
(Sec109 of
NIRC)
(K)Transactions which are exempt under internatl agreements
to w/c the Phil is a signatory or under special laws.
(L) Sales by agricultural cooperatives duly registered w/ the
CDA; their importation of direct farm inputs, machineries &
equipment, including spare parts thereof, used directly &
exclusively.
-Pursuant to RA 9520, it includes sales made by Coops.
(M) Gross receipts from lending activities
multipurpose coops duly registered w/ CDA
by
credit
or
(Sec109 of
NIRC)
45
(Sec109 of
NIRC)
(Sec109 of
NIRC)
Adjusted Threshold
48
Nov. 1/2005
Adjusted
threshold
amounts
P1,500,000
P1,919,500
2,500,000
3,199,200
10,000
12,800
1,500,000
1,919,500
(Sec109 of
NIRC)
PERCENTAG
E TAX
50
51
PERCENTAGE TAXES
NIRC/Ref.
Sec. 116
Taxable
VAT-exempt
persons under
Sec. 109 (V) and
did not opt to
register as VAT
taxpayers
Cooperatives
are exempt
Taxable Base
Annual Gross
Sales/ Receipts
Not Exceeding
P1,919,500.00
Tax
rate
3%
52
Percentage taxes
NIRC/Ref.
Sec. 117
Taxable
Taxable base
Domestic carriers
Gross receipts
a. Car driven by lessee
b. Transportation
contractors/ who
transport
passengers by land
c. Keepers of garage
Except:
d. Bancas
e. Animal-drawn two
wheeled vehicles
Tax rate
3%
53
% TAXES
DOMESTIC CARRIERS
Sec. 117/RR 9-2007
Year 2006
Updated
Minimum Gross
Monthly
Receipts
P21,900.00
10,967.00
P32,867.88
54,733.00
65,700.00
54
% TAXES
DOMESTIC CARRIERS
Sec. 117/RR 9-2007
Year 2006
Updated Minimum
Gross Monthly
Receipts
P32,867.00
21,900.00
P27,367.00
P16,434.00
55
Transport of
Cargoes
Subject to VAT
56
57
Percentage taxes
NIRC/Ref.
Sec. 118
Taxable
Taxable
base
Internation Gross
al air/
receipts
shipping
carriers
Tax rate
3%
Domestic
Carriers - Air & Sea
58
DOMESTIC
FLIGHTS
INTERNATIONAL FLIGHTS
ORIGINATING FROM PHILS.
VAT (12%)
ZERO RATED
(0%)
Percentage taxes
60
NIRC/Ref
Taxable
Sec. 119
Tax on franchises
Radio/TV (with the
option to register as
VAT)
Sec. 119
Sec. 120
Tax on Overseas
Dispatch, Message
or Conversation
Phil. Origin
Taxable base
Not
exceeding
P10M
Annual
Receipts
Gross
Receipts
Tax
rate
3%
2%
61
Exemptions:
1. Government
2. Diplomatic Services
3. International Organizations
4. News Services
62
Percentage taxes
Section/Ref.
Sec. 121
R.A. 9238
RR 9-2004
Taxable
Taxable base
a. Interest,
commissions and
discounts from lending
activities as well as
income from financial
leasing, on the basis of
remaining maturities of
instruments
5 yrs. or less
More than 5yrs.
b. Dividends and
equity shares in the net
income of subsidiaries
Tax
rate
5%
1%
0%
63
% TAXES
Section/Re Taxable
f.
R.A. No.
9337
R.A.
No.9337
Taxable base
c. Royalties, rental of
property, real or personal,
profit from exchange and all
other items gross income
d. On net trading gains
within the taxable year on
foreign currency, debt
securities, derivatives and
other similar instruments
Tax rate
7%
7%
64
% taxes
Section /
Ref.
Sec. 122
Taxable
Taxable base
Tax
rate
65
Financial
Institutions
5%
1%
7%
Non-bank
Financial
Intermediaries
Banks
Performing
quasi-banking
function
5%, 1%, 7%
5%, 1%
66
Percentage taxes
Section /
Ref.
Taxable
Taxable base
Tax rate
Sec. 123
Total Premium
2%
(RMC 222010)
Sec. 124
Total Premium
10%
Sec. 124
Total Premium
5%
Sec. 125
Amusement
Taxes on Cockpits
Gross Receipts
18%
67
percentage taxes
Section /
Ref.
Sec. 125
Taxable
Tax
rate
Gross
Receipts
18%
18%
Sec. 125
Boxing Exhibitions
Gross
Receipts
10%
Sec. 125
Professional basketball
games
Sec. 125
RMC 182010
Taxable base
% TAXES
68
Section
/Ref.
Sec. 126
Sec. 126
Taxable
Tax on Winnings
Every Person Who
wins
Owners of winning
horses
Taxable base
Winnings or
dividends based on
the actual amount
paid for every
winning ticket after
deducting the cost of
ticket
Tax
rate
10%
PERCENTAGE TAXES
69
Section
/Ref.
Taxable
Taxable
base
Tax
rate
Sec. 127
Sec. 127
GSP
4%
GSP
2%
GSP
1%
Over 33 1/3%
70
71
-do-do-
Form 2551Q
Deadline 20th day after end of each quarter for
for Sec. 125 Amusement Taxes
Example
Percentage Tax Liability
The Gross Income of Mr. A, a Non-VAT taxpayer engaged in
the practice of profession, for the month of October 2013 is
P50,000.00. Compute for the percentage tax liability.
Percentage Tax (PT) Liability for the month of Oct. 2013 is:
Gross Receipts
P50,000.00
3%
P1,500.00
T
Be On ime
I
Be nformed of the latest BIR
regulations and circulars
P repare correct and accurate returns
S ave money; follow T.I.P.
Thank you!