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 accredited agent banks, file the Monthly VAT declaration, together with the required attachments and pay the VAT due with the Revenue Collection Officer (RCO) or duly authorized Treasurer of the Municipality where such taxpayer (head office of the business establishment) is registered or required to be registered. 4. The RCO or duly authorized Municipal/City Treasurer shall issue a Revenue Official Receipt upon payment of the tax.
* If there is no payment: File the Monthly VAT Declaration, together with the required attachments with the RDO/LTDO/Large Taxpayers Assistance Division, Collection Agent or duly authorized Municipal/ City Treasurer of Municipality/City where the taxpayer (head office of the business establishment) is registered or required to be registered. * The Documentary Requirements are: 1. Duly issued Certificate of Creditable VAT Withheld at Source (BIR Form No. 2307), if applicable 2. Summary Alphalist of Withholding Agents of Income Payments Subjected to Withholding Tax At Source (SAWT), if applicable 3. Duly approved Tax Debit Memo, if applicable
4. Duly approved Tax Credit Certificate, if applicable
5. Authorization letter, if return is filed by authorized representative. 3. What are the items subject to 12% VAT?
* Sale, barter, exchange or lease of goods or properties and services in the Philippines and on importation of goods into the Philippines, which are not considered as exempted or zero-rated, are subject to 12% VAT. 4. What are the exempt transactions?
VAT-exempt sale is a sale of goods, properties or service and the use or lease of properties which is not subject to output tax and whereby the buyer is not allowed any tax credit or input tax related to such exempt sale. The VAT-exempt sale includes: A. Sale or importation of agricultural and marine food products in their...