Please enable JavaScript.

Coggle requires JavaScript to display documents.

VAT MINDMAP - TAN, Transactions Deemed Sale, Changes in or Cessation of…

- - - - 12%
        
        Actual Sale
        
        Basis: Gross selling price or gross value in money of the goods or properties sold, bartered or exchanged. [Section 4.106-7, RR 16- 2005]
        
        Discounts and sales returns and allowance shall be allowed as deductions from the gross selling price in computing the taxable base during the month or quarter.
        
        Sales discount indicated in the invoice at the time of sale, the grant of which is not dependent upon the happening of a future event, may be excluded from the gross sales within the same month/quarter it was given
        
        Sales returns and allowances for which a proper credit or refund was made for during the month or quarter to the buyer for sales previously recorded as taxable sales may be excluded [SECTION 106(D), NIRC]
        
        Transactions Covered
        
        Every sale, barter or exchange of goods or properties
        
        Requisites
        
        An actual or deemed sale of goods or properties for a valuable consideration
        
        Undertaken in the course of trade or business
        
        For use or consumption in the Philippines (regardless of the payment arrangements)
        
        Not exempt from VAT under Sec. 109 of the NIRC, special law, or international agreement
        
        Sale or Exchange of Service
        
        Meaning of “Sale or Exchange of Service”
        
        The phrase 'sale or exchange of services' means the performance of all kinds of services in the Philippines for others for a fee, remuneration or consideration, including those performed or rendered by construction and service contractors; stock, real estate, commercial, customs and immigration brokers; lessors of property, whether personal or real; warehousing services; lessors or distributors of cinematographic films; persons engaged in milling, processing, manufacturing or repacking goods for others; proprietors, operators or keepers of hotels, motels, resthouses, pension houses, inns, resorts; proprietors or operators of restaurants, refreshment parlors, cafes and other eating places, including clubs and caterers; dealers in securities; lending investors; 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; 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; sales of electricity by generation companies, transmission by any entity, and distribution companies, including electric cooperatives; services of franchise grantees of electric utilities, telephone and telegraph, radio and television broadcasting and all other franchise grantees except those under Section 119 of this Code and non-life insurance companies (except their crop insurances), including surety, fidelity, indemnity and bonding companies; and similar services regardless of whether or not the performance thereof calls for the exercise or use of the physical or mental faculties [Section 108, NIRC]
        
        Basis: Gross receipts derived from the sale or exchange of services, including the use or lease of properties
        
        Goods brought in to the Philippines, whether for use in business or not
        
        Basis: Total value used by the Bureau of Customs (BOC) in determining tariff and customs duties, plus customs duties, excise taxes, if any, and other charges (such as postage, commission). However, where the customs duties are determined on the basis of the quantity or volume of the goods, VAT shall be based on the landed cost, plus excise taxes, if any
        
        Landed Cost is the invoice amount including costs of loading, shipping and unloading, customs duties, freight, insurance, other charges, excise tax (if any)
      - 0%
        
        Processing, manufacturing or repacking of goods
        
        For other persons doing business outside the Philippines with the goods are subsequently exported. The services are paid for in acceptable foreign currency and accounted for in accordance with the rules and regulations of the BSP
        
        Sale of power or fuel generated through renewable sources of energy
        
        Services other than processing manufacturing or repacking of goods
        
        Rendered to a:
        1) Person engaged in business conducted outside the Philippines
        2) Non-resident person not engaged in business who is outside the Philippines when the services are performed
        3) The consideration is paid in acceptable foreign currency and accounted for in accordance with the rules and regulations of the BSP
        
        Transport of passengers and cargo by air and sea vessels from the Philippines to a foreign country
        
        Export sales
        
        Sales of goods or property to persons or entities who are tax-exempt (Effectively Zero-Rated Sales)
      - Exempt
        
        (1) Sale of agricultural and marine products in their original state;
        (2) Sale of fertilizers; seeds, seedlings and fingerlings; fish, prawn, livestock and poultry feeds.
        a. Exception: specialty feeds for race horses, fighting cocks, aquarium fish, zoo animals, and other animals generally considered pets
        (3) Transactions exempt under international agreements or special laws, except those under PD 529 (Petroleum concessionaires);
        (4) Sales by agricultural cooperatives duly registered with the CDA;
        (5) Sales by non-agricultural, non-electric, and non-credit cooperatives duly registered with the CDA. Provided, the share capital contribution of each member does not exceed P15,000;
        (6) Sales of real property not primarily held for sale to customers or held for lease in the ordinary course of business, or real property for low-cost and socialized housing, residential lot valued at P1.5M and below and house and lot and other residential dwellings valued at P2.5M and below;
        (7) Lease of a residential unit with a monthly rental not exceeding P15,000;
        (8) Sale, importation, lease, or publication of books and any newspaper, magazine, review or bulletin which appears at regular intervals with fixed prices for subscription and sale and is not devoted principally to publication of paid advertisements;
        (9) Sale or lease of passenger or cargo vessels and aircraft, including engine, equipment and spare parts thereof for domestic or international transport operations;
        (10) Sale or lease of goods and services to senior citizens and persons with disability;
        (11) Transfer of property pursuant to Section 40(C)(2) of the NIRC (tax free exchanges);
        (12) Sale or lease of passenger or cargo vessels and aircraft, including engine, equipment and spare parts thereof for domestic or international transport operations;
        (13) Sale or lease of goods and services to senior citizens and persons with disability;
        (14) Sale of gold to BSP;
        (15) Sale of drugs and medicines prescribed for diabetes, high cholesterol, and hypertension beginning January 1, 2019;
        (16) Sale or lease other than the transactions mentioned in the preceding paragraphs, the gross annual sales and/or receipts do not exceed the amount of P3M
        
        (1) Services subject to percentage tax;
        (2) Services by agricultural contract growers and milling for others of palay into rice, corn into grits and sugarcane into raw sugar;
        (3) Medical, dental, hospital and veterinary services
        a. Exception: those rendered by professionals
        (4) Educational services rendered by private educational institutions duly accredited by DepEd, CHED, and TESDA, and those rendered by governmental educational institutions;
        (5) Services rendered pursuant to an employer-employee relationship;
        (6) Sales by a RAHQ established in the Philippines
        (7) Transactions exempt under international agreements or special laws, except those under PD 529 (Petroleum concessionaires)
        (8) Gross receipts from lending activities by credit or multi-purpose cooperatives duly registered with the CDA
        (9) Services rendered by banks, non-bank financial intermediaries performing quasi-banking functions and other non-bank financial intermediaries;
        (10) Services other than the transactions mentioned in the preceding paragraphs, the gross annual sales and/or receipts do not exceed the amount of P3M