CHAPTER 17 IDENTIFICATION Flashcards
(10 cards)
A tax imposed on the value added at each stage of distribution in the sale, lease, or exchange of goods, properties, or services.
Answer: Value-Added Tax (VAT)
The law that increased the VAT threshold to P3,000,000 and took effect on November 1, 2005.
Answer: Value-Added Tax Reform Act (Republic Act 9337)
The tax rate applicable to taxable sales, barter, or exchange of goods and services in the Philippines.
Answer: 12%
A tax that may be shifted or passed on to the buyer, transferee, or lessee.
Answer: Indirect Tax
The law that removed “foreign currency denominated sale” as a zero-rated sale.
Answer: Tax Reform for Acceleration and Inclusion (TRAIN) Law (RA 10963)
The gross selling price or gross value in money of goods or services on which VAT is computed.
Answer: Tax Base
The sale of goods or services by VAT-registered persons to foreign buyers that are exempt from VAT.
Answer: Export Sales
The government agency responsible for VAT regulation and collection in the Philippines.
Answer: Bureau of Internal Revenue (BIR)
The body that issues VAT zero-rating certification for local purchases of goods related to registered projects or activities.
Answer: Investment Promotion Agency (IPA)
The phrase referring to the regular pursuit of a commercial or economic activity, making it subject to VAT.
Answer: In the Course of Trade or Business 8
