Value Added Tax of the Philippines
Value-Added Tax is a form of sales tax. It 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. It is an indirect tax, which may be shifted or passed on to the buyer, transferee or lessee of goods, properties or services.
1. What is a VAT registered individual? * Any person or entity who, in the course of his trade or business, sells, barters, exchanges, leases goods or properties and renders services subject to VAT, if the aggregate amount of actual gross sales or receipts exceed One Million Five Hundred Thousand Pesos (P1,500,000.00). * A person required to register as VAT taxpayer but failed to register * Any person, whether or not made in the course of his trade or business, who imports goods
2. What are the steps and requirements of the NIRC? * First, an individual must fill-up BIR Form No. 2550 M(Monthly Value-Added Tax Declaration) in triplicate copies (two copies for the BIR and one copy for the taxpayer) * If there is payment: 1. File the Monthly VAT declaration, together with the required attachments, and pay the VAT due thereon with any Authorized Agent Bank (AAB) under the jurisdiction of the Revenue District Office (RDO)/Large Taxpayers District Office (LTDO) where the taxpayer (head office of the business establishment) is registered or required to be registered. 2. The taxpayer must accomplish and submit BIR-prescribed deposit slip, which the bank teller shall machine validate as evidence that payment was received by the AAB. The AAB receiving the tax return shall stamp mark the word "Received" on the return and machine validate the return as proof of filing the return and payment of the tax. 3. In places where there are no duly
1. What is a VAT registered individual? * Any person or entity who, in the course of his trade or business, sells, barters, exchanges, leases goods or properties and renders services subject to VAT, if the aggregate amount of actual gross sales or receipts exceed One Million Five Hundred Thousand Pesos (P1,500,000.00). * A person required to register as VAT taxpayer but failed to register * Any person, whether or not made in the course of his trade or business, who imports goods
2. What are the steps and requirements of the NIRC? * First, an individual must fill-up BIR Form No. 2550 M(Monthly Value-Added Tax Declaration) in triplicate copies (two copies for the BIR and one copy for the taxpayer) * If there is payment: 1. File the Monthly VAT declaration, together with the required attachments, and pay the VAT due thereon with any Authorized Agent Bank (AAB) under the jurisdiction of the Revenue District Office (RDO)/Large Taxpayers District Office (LTDO) where the taxpayer (head office of the business establishment) is registered or required to be registered. 2. The taxpayer must accomplish and submit BIR-prescribed deposit slip, which the bank teller shall machine validate as evidence that payment was received by the AAB. The AAB receiving the tax return shall stamp mark the word "Received" on the return and machine validate the return as proof of filing the return and payment of the tax. 3. In places where there are no duly