In: Accounting
What are the examples of businesses in the Philippines that has VAT? Give 10 examples with computed invoice/receipts. (Like SM and the receipt is 112, 12 is vat)
Value Added Tax, or VAT, is a tax applied on the sale of goods and services in the Philippines. When applicable, VAT may be applied to transactions at each stage of a sales cycle – from manufacturer to the final buyer.
The 12% VAT is applied on the taxable gross selling price of goods and properties and on the gross value of receipts from services and lease of properties. There is also a 0% VAT Rate which is applied on export sales and 0% VAT-rated sales.
1. Manufacturing of goods - Invoice 1000, 120 is VAT
2. Processing Industries - Invoice 1200, 144 is VAT
3. Packaging Industries - Invoice 500, 60 is VAT
4. Reackaging Industries - Invoice 700, 84 VAT
5. Perfume Industry - Invoice 200, 24 VAT
6. Leather goods - Invoice 300, 36 VAT
7. Plastic cans - Invoice 400, 48 VAT
8. Toys Industry - Invoice 600, 72 VAT
9. Notebooks - Invoice 900, 108 VAT
10. Exports - Invoice 800, 0 VAT (Exports are liable to 0% VAT)