TAXATION
FAR EASTERN UNIVERSITY – MANILA
VAT-OUTPUT TAXES (301)
1. Transactions subject to VAT
1.
a.
b.
c.
Transactions
Sales of goods or properties
Sales of services and lease of properties
Importation
Tax Based
Gross selling price (Accrual basis)
Gross receipts ( Cash basis)
Dutiable (total) value as the tax base on importation, if the BOC uses the total
value in determining tariff and customs duties.
Landed cost as the tax base on importation, if custom duties are determined on the
basis of the quantity or volume of goods.
2. In the Course of Trade or Business – Defined
•
The phrase “in the course of trade or business” means the regular conduct or pursuit of a commercial or an economic activity including
transactions incidental thereto, by any person regardless of whether or not the person engaged therein is a non-stock, non-profit private
organization (irrespective of the disposition of its net income and whether or not it sells exclusively to members or their guests), or
government entity.
•
The rule of regularity, to the contrary notwithstanding, services as defined in the Tax Code rendered in the Philippines by non-resident
foreign persons shall be considered as being rendered in the course of trade or business.
3. Goods or properties
•
The term “goods or properties” refers to all tangible and intangible objects which are capable of pecuniary estimation and shall include,
among others:
a. Real properties held primarily for sale to customers or held for lease in the ordinary course of trade or business;
b The right or the privilege to use patent, copyright, design or model, plan, secret formula or process, goodwill, trademark, trade brand or other like
property or right;
c. The right or the privilege to use any industrial, commercial or scientific equipment;
d. The right or the privilege to use motion picture films, films, tapes and discs; and
e. Radio, television, satellite transmission and cable television time.
4. Sale of exchange services
•
Sale or exchange of services means the performance of all kinds of services in the Philippines for others for a fee, remuneration or
consideration, whether in kind or in cash, including those performed or rendered by:
a. Construction and service contractors;
b. Stock, real estate, commercial, customs and immigration brokers;
c. Lessors of property, whether personal or real;
d. Persons engaged in warehousing services;
e. Lessors or distributors of cinematographic films;
f. Persons engaged in milling, processing, manufacturing, or repacking of goods for others;
g. Proprietors, operator or keepers of hotels, motels, rest houses, pension houses, inns, resorts, theatres and movie houses;
h. Proprietors, operators of restaurants, refreshment parlors, cafes and other eating places, including clubs and caterers;
i. Dealers in securities;
j. Lending investors;
k. Transportation contractors on their transport of goods or cargoes including persons who transport goods or cargoes for hire and other domestic
common carriers by land, relative to their transport of goods or cargoes;
l. Common carriers by air and sea relative to their transport of passengers, goods or cargoes from one place in the Philippines to another place in the
Philippines;
m. Sales of electricity by generation, transmission, and/or distribution;
n. Franchise grantees of electric utilities, telephone and telegraph, radio and/or television broadcasting and all other franchise grantees, except
franchise grantees of radio and/or television broadcasting whose annual gross receipts of the preceding year do not exceed P10,000,000, and
franchise grantees of gas and water utilities;
o. Non-life insurance companies (except their crop insurance), including surety, fidelity, indemnity and bonding companies;
p. Similar services regardless of whether or not the performance thereof calls for the exercise or use of the physical or mental faculties.
2. Characteristic of VAT
a. It is an indirect tax where tax shifting is always presumed.
The value added tax is an indirect tax and the amount may be shifted or passed on to the buyer, transferee or lessee of the goods, properties or
services. The seller is the one statutorily liable to pay for the payment of the tax but the amount of the tax may be shifted or passed on the buyer or
transferee or lessee of the goods, properties or services. This rule shall likewise apply to existing contracts of sale or lease of goods, properties or
services at the time of the effectivity of RA 9337 (VAT Reform Act). However, in the case of importation the importer is the one liable for the
VAT. (RR 16-2005).
The “burden of the tax” is borne by the final consumers although the producers and suppliers of these goods and services are the ones who have to
file their VAT returns to the BIR. Hence, what is transferred or shifted to the consumers is not the “liability to pay the tax” but the tax burden.
b. It is consumption-based.
VAT is a tax on consumption levied on the sale, barter, exchange or lease of goods or properties and services in the Philippines and on importation
of goods into the Philippines (RR 16-2005). It is the end user of consumer goods or services which ultimately shoulders the tax as a liability
therefrom is passed to the end users by the providers of these goods or services. The VAT, thus, forms a substantial portion of consumer
expenditures.
3. VAT output taxes
Page 1 of 7
c. It is imposed on the value-added in each state of production and distribution process.
The VAT system assures fiscal adequacy through the collection of taxes on every level of consumption. Each business in the supply chain takes
part in the process of controlling and collecting the tax.
d. It is a credit-invoice method value-added tax.
VAT payable is computed by deducting the input VAT from the output VAT. The providers of goods or services passed on to the users the
liability to pay the tax who in turn may credit their VAT liability from the VAT payments they received from the final consumer. This is because
VAT is a consumption tax levied on sales to be borne by consumers with sellers acting simply as tax collectors.
In the Philippines, the “Credit-Invoice Method” or “Tax Credit Approach” is adopted in computing the VAT payable. This means the VAT is
imposed on the sale first called “Output VAT” and a tax credit is allowed or claimed on the VAT passed-on to his purchase or cost of goods or
services known as “Input Tax”. The excess of output VAT over Input VAT is called “ VAT Payable”
3. Computation of VAT (Excess Input Tax)
a. Output tax exceeds of input tax at the end of any quarter
Output tax
xxx
Less Input Tax and other tax credit
(xxx)
VAT payable (Current liability)
xxx
b. Input tax inclusive of input tax carried over from the previous quarter exceeds output tax
Output tax
Less Input Tax and other tax credit
Excess input tax(Current asset)
xxx
(xxx)
(xxx)
4. Computation of the tax base and the applicable tax rates
Transaction
Tax Base
a. Sale of goods
Gross Selling Price
Gross selling price
Tax Rate
12% or 0%
Xxx
Less: Sales returns and allowances
Sales discount
b. Sale of real properties on
installment plan ( initial payment
do not exceed 25% of the gross
selling price)
c. Sale of real properties on cash
basis or deferred payments plans
(initial payments exceed 25% of
the gross selling price)
d. Sales of services
e. Gross receipts for dealer in
securities
Net sales
Add: Excise tax if any
Xxx
Xxx
Tax Base
Xxx
Installment received
Add: Interest
Other charges
3. VAT output taxes
12% or 0%
xxx
xxx
xxx
xxx
Tax Base
xxx
Upon full collection, if the zonal value or market value is higher than the total receipts or
collections, the additional vat shall be paid accordingly (RMC 3-96; RR 4-3007)
Selling price stated in the sales documents or fair market value, whichever is higher
xxx
xxx
Materials charged with the services
xxx
Gross receipts (excluding vat)
Note: Receivables, although earned, are not included
xxx
Gross receipts computed as follows:
Gross selling price
Less: Acquisition cost of securities sold for the month
or quarter
Balance
12% or 0%
12% or 0%
Gross receipts computed as follows:
Cash received (actually or constructively)
Advance payments for future projects
Add: Other or incidental income
f. Gross receipts on the sale of
electricity by generation,
transmission and distribution
companies
xxx
xxx (xxx)
12% or 0%
xxx
(xxx)
xxx
xxx
Gross receipts
xxx
Gross receipts shall refer to the following:
a. Total amount charged by generation companies for the sale of electricity and
related ancillary services; and/or
b. Total amount charged by transmission companies for transmission of electricity
and related ancillary services; and/or
c. Total amount charged by distribution companies and electric cooperatives for
12% or 0%
Page 2 of 7
distribution and supply of electricity and related electric service. The universal
charge passed on and collected by distribution companies and electric
cooperatives shall be excluded from the computation of the Gross Receipts.
Sale of power or fuel generated through renewable source of energy
•
The sale of power or fuel from renewable source of energy is zero rated.
•
Renewable sources of energy may include, but is not limited to, biomass, solar, wind,
hydropower, geothermal and steam, ocean energy and other emerging sources using
technologies such as fuel cells and hydrogen fuels. (RA 9513 and RA 9337)
•
The zero rated is limited on sale of power and does not extend to sales of services related to
the maintenance or operation of plants generating said fuel.
Types of business in the electricity business:
1. Generation companies – refers to persons or entities authorized by the Energy Regulatory
Commission (ERC) to operate a facility used in the production of electricity.
2. Transmission companies - refers to any person or entity that owns and conveys electricity through
the high voltage backbone system and or sub-transmission assets.
3. Distribution companies – refers to persons or entities including a distribution utility such as
electric cooperative which operates a distribution system with the provision of RA 9136.
Distribution companies and transmission companies are just “ pass through” entities (RMC 62 – 2012,
RMC 71-2012, RMC 61-2005)
e. Importation
“Importer” – refer persons bringing
goods into the Philippines, whether or
not made in the course of trade or
business. Importation is not a sale of
goods, or sometimes not even a
business activity, yet is subject to vat.
This is because vat is a consumption
tax levied on sales to be borne by
consumers with sellers acting simply
as tax collectors. Since the origin of
importation is from a foreign seller
which
is
outside
Philippine
jurisdiction, vat is instead paid
directly by the importer.
a. In general (As determined by the BOC)
Total value for tariff and custom duties
Dutiable Value
Add: Custom duties
Excise tax
Other charges prior to release
of goods from custom custody***
Tax base
12%
xxx
xxx
xxx
xxx xxx
xxx
b. In case where custom duties is based on volume or quantity
Invoice cost
Add: Custom duties
Excise tax
Other charges prior to release
Total landed cost (Tax base)
xxx
xxx
xxx
xxx
*** Examples of other charges prior to release:
a. Insurance
b. Freight
c. Postage
d. Commission
e. Interest
f. Bank charges
g. Wharfage dues
h. Arrastre charges
i. Brokerage fees
j. Stamps
k. Processing fees
l. Custom duty
m. Excise tax
Note: Facilitation fee- not included as a charges prior to release from custom custody.
Excise tax is applicable to manufacturers and importers of sin products and non-essential
goods. (If the problem is silent, assume excise tax rate of 20%)
(RR 16-2005): No VAT shall be collected on importation of goods which are specifically
exempted under Sec. 109 (1) of the tax code.
5. Output VAT
a. Meaning of output tax
Output tax means the value-added tax on sale or lease of taxable goods or properties or services by any person registered or required to register
b. Determination of output tax
In a sale of goods or properties, the output tax is computed by multiplying the gross selling price by the regular rate of VAT
6. Sources of Output Tax
Transaction
3. VAT output taxes
Examples
Page 3 of 7
a. Actual sales of goods or properties
Cash sales and sales on account
b. Actual sales of services or lease of properties
Cash sales and collections
1)
2)
1.
2.
Sales of goods for cash
Sales of goods on account
Sale of services
Lease of properties
c. Deemed sales of goods or properties
7. Zero Rated Sale Defined
A zero-rated sale of goods or properties and services (by a VAT-registered person) is a taxable transaction for VAT purposes, but shall not result in
any output tax. However, the input tax on purchases of goods, properties or services, related to such zero-rated sale, shall be available as tax credit or
refund in accordance with the Regulations.
Examples of Zero-Rated Sales
a. Export sales
1. Sales of goods or properties
a) The sale and actual shipment of goods from the Philippines to a foreign country, irrespective of any shipping arrangement that may be
agreed upon which may influence or determine the transfer of ownership of the goods so exported and paid for in acceptable foreign
currency or its equivalent in goods or services, and accounted for in accordance with the rules and regulations of the Bangko
Sentral ng Pilipinas (BSP);
b) Sale of raw materials or packaging materials to a nonresident buyer for delivery to a resident local export oriented enterprise to be used in
manufacturing, processing, packing, or repacking in the Philippines of the said buyer’s goods and paid for in acceptable foreign
currency or its equivalent in goods or services, and accounted for in accordance with the rules and regulations of the Bangko
Sentral ng Pilipinas (BSP); (Note With Condition)
c) Sale of raw materials or packaging materials to export-oriented enterprise whose export sales exceed 70% of the total annual production.
(Note With Condition)
e) Those considered export sales under the Omnibus Investment Code of 1987 (E.O No. 226), and other special laws. (Note With
Condition)
f) The sale of goods, supplies, equipment and fuel to persons engaged in international shipping or international air transport operations.
Provided, That the goods, supplies, equipment and fuel shall be used for international shipping or air transport operations.
Provided, That subparagraphs (B), (C), and (E) hereof shall be subject to the twelve percent (12%) value-added tax and no longer be
considered export sales subject to zero percent (0%) VAT rate upon satisfaction of the following conditions:\
(1) The successful establishment and implementation of an enhanced VAT refund system that grants refunds of creditable input tax within ninety
(90) days from the filing of the VAT refund application with the Bureau: Provided, That, to determine the effectivity of item no. 1, all applications
filed from January 1, 2018 shall be processed and mustbe decided within ninety (90) daysfrom thefiling of the VAT refund application; and
(2) All pending VAT refund claims as of December 31, 2017 shall be fully paid in cash by December 31, 2019.
Provided, That the Department of Finance shall establish a VAT refund center in the Bureau of Internal Revenue (BIR) and in the Bureau of Customs
(BOC) that will handle the processing and granting of cash refunds of creditable input tax.
An amount equivalent to five percent (5%) of the total VAT collection of the BIR and the BOC from the immediately preceding year shall be
automatically appropriated annually and shall be treated as a special account in the General Fund or as trust receipts for the purpose of funding claims
for VAT refund: Provided, That any unused fund, at the end of the year shall revert to the General Fund.
Provided, further, That the BIR and the BOC shall be required to submit to the Congressional Oversight Committee on the Comprehensive Tax
Reform Program (COCCTRP) a quarterly report of all pending claims for refund and any unused fund.
(g) Sales to persons or entities whose exemption under special laws or international agreements to which the Philippines is a signatory
effectively subjects such sales to zero rate.
Effectively zero-rated sales
Sales of goods or property to persons or entities who are tax-exempt under special laws, e.g. sales to enterprise duly registered and accredited
with the Subic Bay Metropolitan Authority (SBMA) pursuant to R.A. No. 7227, sales to enterprises duly registered and accredited with the
Philippine Economic Zone Authority (PEZA) or international agreements to which the Philippines is signatory, such as, Asian
Development Bank (ADB), International Rice Research Institute (IRRI), etc., shall be effectively subject to VAT at zero-rate.
1) Enterprises Registered Under the Bases Conversion and Development Act of 1992 and The Special Economic Zone Act of 1995
(R.A.7916)
•
Registered Activities
Enterprises that are registered with the :
a) Subic Bay Metropolitan Authority (SBMA)
b) Clark Development
3. VAT output taxes
Page 4 of 7
c) Philippine Economic Zone Authority (PEZA)
•
Unregistered Activities
Engage in registered as well as unregistered activities.
Registered Activities
Taxability of BOI or PEZA Registered Enterprises: Note that BOI income tax holiday incentive has a sunset provision which
expires in not more than 10 years. Upon graduation to the income tax holiday incentive, an entity may register as an ordinary
enterprise or remain as a BOI-registered enterprise. But either way, there is no more income tax holiday incentive. There are benefits,
however, of remaining as a BOI-registered enterprise particularly on VAT.
Income derived by such enterprises from registered activities shall be subject to such tax treatment as may be specified in the terms of
registration, i.e.:
5% preferential tax rate
Income tax holiday (ITH)
Regular income tax rate
•
•
•
•
•
•
•
Except for real property taxes on land owned by developers, no taxes, local and national, shall be imposed on business establishments
operating within the ecozone.
In lieu thereof, five percent (5%) of the gross income earned (GIE) by all business enterprises within the ecozone shall be paid and
remitted as follows:
Three percent (3%) to the National Government (60% x 5%)
Two percent (2%) to the Local Government (40% x 5%)
Unregistered Activities (Outside Registered Operations)
Subject to the appropriate taxes.
Final tax on passive income
Capital gains tax
30% regular corporate tax (not part of registered activities)
Sale of scrap materials and income from other activity are subject to regular rate.
The gain on the sale of factory and office building by a PEZA entity.
2. Sales of services and lease of properties
a) Processing, manufacturing or repacking of goods for other persons doing business outside the Philippines which goods are subsequently
exported, where the services are paid for in acceptable foreign currency and accounted for in accordance with the rules and
regulations of the Bangko Sental ng Pilipinas (BSP). (Note With Condition)
b) Services other than processing, manufacturing or repacking rendered to a person engaged in business conducted outside the Philippines or
to a non-resident person not engaged in business who is outside the Philippines when the services are performed, the consideration for
which is paid for in acceptable foreign currency and accounted for in accordance with the rules and regulations of the Bangko
Sentral ng Pilipinas (BSP).
c) Services rendered to persons or entities whose exemption under special laws or international agreement to which the Philippines is a
signatory effectively subjects to supply of such services to zero percent rate.
d) Services rendered to persons engaged in international shipping or air transport operations, including lease of property for use thereof;
Provided, that these services shall be exclusive for international shipping or air transport operations Notes: Provided, however,
that the services referred to herein shall not pertain to those made to common carriers by air and sea relative to their transport of
passengers, goods or cargoes from one place in the Philippines to another place in the Philippines, the same being subject to 12% VAT.
e) Services performed by subcontractors and /or contractors in processing, converting or manufacturing goods for an enterprise whose export
sales exceed 70% of the total annual production. (Note With Condition)
f) Transport of passengers and cargo by domestic air or sea carriers from the Philippines to a foreign country. Gross receipts of international
air and sea carriers doing business in the Philippines are still liable to the 3% percentage tax under Sec. 118 of the Tax Code and not to
VAT.
g) Sale of power or fuel generated through renewable sources of energy such as, but not limited to, biomass, solar, wind, hydropower,
geothermal and steam, ocean energy, and other emerging sources using technologies such as fuel cells and hydrogen fuels, Provided,
however, that zero rating shall apply strictly to the sale of power or fuel generated through renewable sources of energy, and shall not
extend to the sale of services related to the maintenance or operation of plants generating said power.
8. Sales, Transfer, or Exchange of Imported Goods by Tax-Exempt Persons
In the case of goods imported into the Philippines by VAT-exempt persons, entities, or agencies which are subsequently sold, transferred or
exchanged in the Philippines to non-exempt persons or entities, the latter shall be considered the importers thereof who shall be liable for VAT on
such importation.
b. The tax due on such importation shall constitute a lien on the goods, superior to all charges or liens, irrespective of the possessor of said goods.
9. Sale of Real Properties
3. VAT output taxes
Page 5 of 7
a. Classification of Real Property
1. Sale not in the ordinary course of trade or business
•
In general
2. Sale of residential lot by a real estate dealer
•
Selling price < P1,500,000 *
•
Selling price > P1,500,000
3. Sale of residential lot by a non-dealer
•
Use in business (incidental transaction)
•
Not use in business (regardless of amount)
4. Sale of residential house and lot and other residential dwellings by a real estate dealer
•
Selling price < P2,500,000**
•
Selling price > P2,500,000
•
NOTE : By 2021, only house and lot – not more than P2,000,000
5. Sale of residential house and lot and other residential dwellings by a non-dealer
•
Use in business (incidental transaction)
•
Not use in business (regardless of amount)
6. Sale of real property classified as low cost housing
7. Sale of real property classified as socialized housing
*Apply rules on adjacent lots
**Apply rules on adjacent house and lots and other residential dwellings.
b. Tax Base
Personal property
Real property
1. Cash Sale
2. Deferred
Payment Basis
VAT Exempt
VAT Exempt
VAT
VAT
6% CGTax
VAT Exempt
VAT
VAT
6% of CGTax
VAT Exempt
VAT Exempt
GSP
GSP vs. FMV vs. ZV w/c is the highest
GSP- Gross Selling Price
FMV- Fair Market Value
ZV- Zonal Value
[(Collection/GSP)] x GSP vs. FMV vs. ZV w/c ever is the highest
3. Installment Plan
Gross Selling Price- means the total amount of money or its equivalent which the purchaser pays or is obligated to pay to the seller in consideration
of the sale, barter or exchange of the goods and properties, excluding VAT.
NOTES: The following shall be allowed as deductions from gross selling price;
a. Sales discount indicated in the invoice at the time of sale, the grant of which is not dependent upon the happening of a future
b. Sales returns and allowances for which a proper credit or refund was made for sales previously recorded as taxable sales.
Fair Market Value- means fair market value as shown in the schedule of values of the Provincial and City Assessors (real property tax declaration).
Zonal Value- means fair market value as determined by the BIR Commissioner.
Deferred Payment Basis- means sales of real property, the initial payments of which in the year of sale exceed 25% of the gross selling price.
Installment Plan- means sale of real property, the initial payment of which in the year of sale do not exceed 25% of the gross selling price.
c. VAT on Sale of Real Properties
Payment Terms
If total selling price is paid immediately
1.Cash Sale
2. Deferred Sale
If the buyer only paid:
1. Portion of the selling price and
2. Initial payment exceeds 25% of the S.P.
If the buyer only paid:
1. Portion of the selling price and
2 Initial payment do not exceed 25% of the
S.P.
3. Installment Sale
Payment of Output VAT
Output VAT shall be reported during the month
of sale
Same effect with cash sales. Output VAT shall
be reported during the month of sale
The seller or the real estate dealer shall be
subject to VAT on installment payments,
inclusive of interest and penalties.
Initial payment pertain to all payments which the seller receives on or before the execution of the instrument of sale, including cash or property received, other than the
purchaser’s evidence of indebtedness, during the taxable year when the real property was sold.
Down payment
xxx
Collection (Yr. Of Sale)
xxx
Add:
Interest
xxx
Other charges
xxx
Tax base
xxx
If ZV or MV > receipts upon
collection, additional VAT shall be paid
(RMC 3-96; RR 4-2007)
xxx
3. VAT output taxes
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Additional NOTES: Estate Tax
Deduction: For unpaid mortgages upon, or any indebtedness in respect to, property where the value of decedent’s interest therein, undiminished by
such mortgage or indebtedness, is included in the value of the gross estate, but not including any income tax upon income received after the death
of the decedent, or property taxes not accrued before his death, or any estate tax. The deduction herein allowed in the case of claims against the
estate, unpaid mortgages or any indebtedness shall, when founded upon a promise or agreement, be limited to the extent that they were contracted
bona fide and for an adequate and full consideration in money or money’s worth. There shall also be deducted losses incurred during the settlement
of the estate arising from fires, storms, shipwreck, or other casualties, or from robbery, theft or embezzlement, when such losses are not compensated
for by insurance or otherwise, and if at the time of the filing of the return such losses have not been claimed as a deduction for the income tax
purposes in an income tax return, and provided that such losses were incurred not later than the last day for the payment of the estate tax as
prescribed in Subsection (A) of Section 91.
END
Exercises
Exercie A : Determine whether or not the following are subject to VAT
Transaction
1. Sale of bread by a bakery
2. Sale of residential lot by a real estate dealer
3. Sale of residential house and lot by the owner who resides in such property
4. Sale of food and drinks by restaurant and other eating places
5. Importation of raw materials for business purpose
6. Importation of computer for personal use
7. Sale of office supplies by a non-profit institution
8. Warehousing services by a government owned or controlled operation
9. Sale of food and drinks in a club operated by a non-profit organization
10. Sale of drinks by Coca-Cola Company
SG
SP
SP
SS
I
I
SG
SS
SS
SG
VAT-subject?
Yes
Yes
No
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Exercie B Instruction: Place R if the person or entity is required to register as VAT. Otherise place N.
1 VAT-exempt person under Sec 109 who did not register as VAT taxpayer.
2 Individual engaged in business where the gross sales or receipt do not exceed P100,000 during the 12 month period.
3 Non-stock, non profit organization whose gross sales or receipts do not exceed P3,000,000.
4 Multipurpose Cooperatives.
5 Radio and TV broadcasting whose annual sales exceeded P10,000,000.
6 PEZA and other ecozones registered enterprises enjoying preferential rate of 5% in lieu of all taxes.
7 SBMA and other freeport zone registered enterprise enjoying preferential rate of 5% in lieu of all taxes.
Exercie C Instruction: Place Z if the transaction is a subject to a zero percent VAT.
1
Sale of precious metal other than gold to the BSP.
2
Sale of gold to the BSP
3
Sale to export processing zones.
4
Sale of goods or property to SBMA, PEZA, ADB and IRRI
5
Sale of raw material to export oriented BOI-registered enterprise whose export sale exceed 70%.
6
Sale to bonded manufacturing warehouse of export oriented manufacturers.
7
Sale to diplomatic missions and other agencies/instrumentalities granted tax immunities of locally manufactured or assembled
or repacked products Paid in Philippine peso.
8
Sale of fuel to an international shipping which was used in transporting goods from Manila to Japan.
9
Actual exports
10 Retirement of business
Exercise 4: Sales during the year:
Subject to:
A
12%
P900,000
0%
1,000,000
Exempt
4,100,000
Total
P6,000,000
Which is/are subject to VAT?
3. VAT output taxes
B
P1,000,000
1,900,000
2,100,000
P5,000,000
C
P950,000
950,000
3,100,000
P5,000,000
N
N
N
N
R
N
N
Z
Z
Z
Z
Z
Z
Z
Z
D
P1,500,000
2,000,000
1,000,000
P4,500,000
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