Finals Business Tax

• Consumption tax is a tax levied upon businesses
• A purchase is a form of consumption
• A tax on consumption will effectively causes all residents of the state to pay tax
• Consumption is the acquisition or utilization of goods and services
• Income tax is based on the taxpayers' capacity to sacrifice for the support of the government
• Consumption tax is more consistent with the "ability to pay theory rather than the "benefit received" theory
• A tax on consumption would support savings initiative
• Consumption taxes should not apply to basic necessities
• Both domestic consumption and foreign consumption are subject to consumption tax
• Non-resident sellers are exempt from consumption taxes on their domestic sales
• Resident sellers shall pay consumption tax on foreign consumption
• The sale by non-resident persons abroad is subject to Philippine consumption tax
• The utilization or consumption of goods or services shall be taxable in their country of origin
• The sale by non-resident persons in the Philippines is exempt from consumption tax
• The sale by resident in the Philippines is subject to consumption tax
• The consumption tax for purchases of goods or services from foreign sources shall be payable by the buyer
• Business tax is a form of consumption tax
• Consumption tax is not a form of business tax
• Business tax is imposed on the sales of sellers which is the purchases made by the buyers
• The VAT on importation is payable by those regularly engaged in trade or business
• Business taxes are paid by sellers while the VAT on importation is paid by the buyers
• The statutory taxpayer and the economic taxpayer are the same with the VAT on importation
• Business taxes are usually included in the price of goods and services of the seller but are remitted by the seller to the government
• In business taxes, the statutory taxpayer is not the economic taxpayer
• The sales or importation of goods is not subject to specific percentage tax
• When the impact and incidence of taxation rests upon different persons, the tax is an indirect tax
• Domestic sellers pay consumption tax to the government
• Exporters do not pay consumption tax to the government
• Domestic consumption


  Consumption within the Philippines
• Foreign consumption


  Consumption outside the Philippines
• Consumption tax


  A tax upon the usage of income
• VAT on importation


  Tax on domestic consumption from foreign suppliers
• Business tax


  Tax on domestic consumption from resident suppliers
• Consumption taxes are always indirect in nature
• Consumption taxes effectively tax everyone in the state
• Consumption taxes apply only when the goods or services are destined for consumption within the Philippines
• Consumption taxes may encourage savings formation
• Consumption tax may help in the redistribution of wealth to society
• Consumption tax is not entirely based upon the consumers' ability to pay
• Consumption tax applies to both domestic and foreign consumption