Question

VAT PHILIPPINES - Presentations similar to real business transactions will be appreciated.

Make a fictitious case flowchart:

1. Start from a VAT-Exempt person transacting to a VAT-registered person. From the VAT-registered, two transactions happen 1) Export sale and 2) Local sale.

2. Compute the Input VAT, Output VAT and VAT payable in each transaction (put in a table).

3. Write an explanation about the case and the computation.

Answer 1

(1) Vat exempt person to Vat Registred person

Not taxable as seller is not required to collect Vat

Vat - 0

(2) VAT registered dealer to _ local sale

Sales TAXABLE @12%

eg sale value - 100

Vat payable - 12

Input - 12 for local registered dealer

(3) Vat registered dealer - Export

Sales not taxable - export incentives

Output - 0

Input - 0