VAT is not payable on certain exempt supplies such as basic food items, medical care, education, financial services, and some other specified products/services.
Business taxes are those imposed upon honorable transfers such as sale, barter, exchange, and importation.
Any person or entity who in the course of his trade or business sells partners and exchanges goods and properties and renders services, and whose aggregate amount of actual gross services exceeded 3 million pesos, is required to register for VAT.
A VAT-registered person shall issue a VAT invoice or a VAT official invoice for every engagement in trade, sale, barter or exchange of goods or properties.
Failure to issue receipt, failure to file value added tax return, and understatement of the taxable sale or receipts are grounds for the cancellation of registration.
If the tax base is the fair market value, the output tax is calculated by multiplying the ratio of the collection over the total consideration by the fair market value.
If the tax base is the assess value, the output tax is calculated by multiplying the ratio of the collection over the total consideration by the assess value.
If the tax base is the zonal value, the output tax is calculated by multiplying the ratio of the collection over the total consideration by the zonal value.
If the tax base is the gross selling price, the output tax is calculated by multiplying the ratio of the collection over the total consideration by the gross selling price.
If the tax base is the market value, the output tax is calculated by multiplying the ratio of the collection over the total consideration by the market value.
If the tax base is the zonal or market value, the output tax is calculated by multiplying the ratio of the collection over the total consideration by the zonal or market value.
If the tax base is the zonal or market value and the value added tax is not built separately, the zonal or market value shall be deemed exclusive of the value added tax.
The sale of goods or properties is considered as deemed sale when the consideration is in the form of money, except for activities considered as deemed sale.
n is not exempt from the transaction, the sale of goods or properties is within the Philippines, following the situs of Taxation V the ownership of goods or properties is transferred from the seller to the buyer, and the sale of goods or properties is made in consideration of money or its equivalent.
The sale of goods or properties is considered as deemed sale when the consideration is in the form of gratuity, donation, in the course of trade, or barter.
The sale of real properties is considered as deemed sale when the highest amount among the consideration, the zonal and the assess value is higher than the gross selling price.
VAT is imposed on the Consolidated quarterly VAT return, which is cumulative for three months, and is due on the 25th day following the close of the taxable quarter.