Value Added Tax (Input VAT and VAT Payable) Flashcards
(16 cards)
STATUTORY REQUIREMENTS AND VAT REPORTING
A VAT-registered taxpayer shall issue a _____for every transaction involving sale of goods and services (including lease of properties)
VAT invoice
Information contained in the invoice:
➢ Seller’s TIN and statement that the seller is VAT-registered
➢ Amount that the buyer is obligated to pay, with indication that such amount is VAT inclusive
✓The amount of the tax shall be shown as a separate item in the invoice;
✓If the sale is exempt from value-added tax, the term VAT-exempt sale shall be written or printed on the invoice;
✓If the sale is zero-rated, the term ‘zero-rated sale’ shall be written or printed on the invoice.
✓If the sale involves transaction that are VATable, zero-rated and/or VAT-exempt, the invoice shall clearly indicate
the break-down of the sale price between its taxable, exempt and zero-rated components, and the calculation of the
value-added tax on each portion of the sale shall be shown on the invoice
➢ Transaction date, quantity, unit price/cost and description of goods or service
➢ For sales amounting to P1,000 or more, customer’s name, address and TIN
Accounting Requirements
• Required books of accounts (in addition to regular accounting records)
➢Subsidiary sales journal
➢Subsidiary purchases journal
• Above accounting requirements does not apply to non-resident digital service providers.
Erroneous VAT Invoice
Issuance of VAT-invoice by a Non-VAT taxpayer
➢The taxpayer shall pay the following:
1.
2.
3.
➢VAT may be claimed as input VAT by the purchase if invoicing requirements are followed
- The percentage tax due on Non-VAT taxpayer,
- VAT billed without benefit of input VAT, and
- sucharge of 50% of the VAT erroneously billed
Erroneous VAT Invoice
• Issuance of ambiguous VAT-invoice on VAT-exempt sales
➢The taxpayer failed to display the term “VAT exempt sale” or provide a breakdown.
➢Seller will be liable for VAT as if the sales is not exempt.
Erroneous VAT Invoice
Issuance of VAT invoice with lacking information
➢Seller will be liable for non-compliance with invoicing requirements
➢Buyer can still claim input VAT, provided that the missing information do not pertain to:
✓Amount of sales;
✓Name and TIN of seller and buyer;
✓Transaction date; and,
✓Description of goods or services
Timing of VAT Filing and Payment
Filing of monthly and quarterly VAT return
➢The taxpayer shall use BIR FORM?
a. Monthly?
b. Quarterly?
BIR Form 2550M (for monthly) or 2550Q (for quarterly).
➢ Quarterly VAT return are due on or before the ___________.
25th day following the end of a taxable
quarter
T or F?
No due date set on monthly VAT returns.
T
➢Filing of Quarterly VAT return is mandatory, while the monthly VAT return is optional.
T
Venue of filing
➢VAT returns can be filed and the tax can paid, either electronically or manually, with any
authorized agent bank, Revenue District Office through Revenue Collection Officer or
authorized tax software provider. (Ease of Paying Taxes Act)
Reverse Charge Mechanism on Digital Services
➢VAT withheld by nonresident digital service provider shall be remitted within ______
following the end of the month when the taxes were withheld. (BIR For 1600-VT)
ten (10) days
Power of the Commissioner to Suspend Business Operations
The Commissioner is empowered to suspend business operations and temporarily
close the business establishment of person for any of the following violations:
➢ A VAT-registered Person who:
a. failed to issue invoices
b. failed to file VAT return; or
c. understates taxable sales by 30% or more of the correct taxable sales for the taxable quarter.
➢ Failure of any person to register th business operation.
The temporary closure of the establishment shall be for the duration of _________and shall be lifted only upon compliance with the requirements
prescribed by the Commissioner in the closure order.
not less than five (5) days
T or F?
The power of the Commissioner to suspend shall include the blocking of digital services performed or rendered in the Philippines by a digital service provider. Implementation will be done by the DICT through the NTC.
T
