VAT

Question 1

VAT on sale of goods

Answer 1

12% of gross selling price

Question 2

VAT on sale of service or lease of prop

Answer 2

12% of gross receipts

Cash or cash equivalent actually or constructively received

Question 3

VAT on importation

Answer 3

12% of total landed cost

Applicable whether importation is for sale, use in business or personal use

Question 4

Transitional Input Tax

Answer 4

for persons who becomes liable to VAT for the first time

2% of beg inventory or actual VAT paid on such goods (higher)

Question 5

Presumptive Input Tax

Enumerate

Answer 5

For VAT registered engaged in the processing of:

1. Sardines
2. Mackerel
3. Milk
4. Refined sugar
5. Cooking oil
6. Packed noodle based instant meals

Question 6

Zero rated : services performed for enterprise whose export sales _ of total annual production

Answer 6

Exceed 70%

Question 7

Total Landed Cost

Answer 7

Charges prior to release of goods from customs duty including customs duties, excise taxes, commissions, postage, wharfage, arrastre….

Does not include: facilitation fees, trucking fee

Question 8

VAT on lease of properties

Answer 8

12%: monthly above 15000
Total above 3M
3%: monthly above 15000
Total below 3M
Exempt: monthly 15000 and below

If residential threshold of 15000 is important
If commercial, wag pansinin threshold

Question 9

VAT on sale of real property

Answer 9

12%: if held primarily for sale or for lease in the ordinary course of business

Not subj to VAT:
a. Not for ordinary course of business
b. Low cost housing
c. Socialized housing
d. Residential lot: selling price 1.5M old: 1919500
Residential house and lot: 2M old: 3199200

Question 10

Spread of input VAT on capital goods (used in business???)

Answer 10

If AGGREGATE acquisition cost exclusive of VAT in a month exceeds 1,000,000 : spread over 60 months or useful life (shorter)

If does not exceed, credit against output tax in the month of acquisition

If sold prior to exhaustion of the input tax, entire unamortized input tax eould be recognized

Acquisition cost not yung payments actually made

Question 11

Excess input tax

Answer 11

Can be carried over to the succeeding quarters

Question 12

Mandatory VAT registration

Answer 12

For those persons whose gross sales or receipt exceeds 3M within the year

Old: 1919500

Question 13

Registration fee and date ofnregistration

Answer 13

500 pesos for every separate establishment / branch

On or before Jan 31st of every yr