Value Added Tax of the Philippines - 3307 Words

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†¦show more content†¦Sale or importation of fertilizers; seeds, seedlings and fingerlings; fish, prawn, livestock and poultry feeds, including ingredients, whether locally produced or imported, used in the manufacture of finished feeds (except specialty feeds for race horses, fighting cocks, aquarium fish, zoo animals and other animals considered as pets); C. Importation of personal and household effects belonging to residents of the Philippines returning from abroad and non-resident citizens coming to resettle in the Philippines; Provided, that such goods are exempt from custom duti es under the Tariff and Customs Code of the Philippines; D. Importation of professional instruments and implements, wearing apparel, domestic animals, and personal household effects (except any vehicle, vessel, aircraft, machinery and other goods for use in the manufacture and merchandise of any kind in commercial quantity) belonging to persons coming to settle in the Philippines, for their own use and not for sale, barter or exchange, accompanying such persons, or arriving within ninety (90) days before or after their arrival, upon the production of evidence satisfactory to the Commissioner of Internal Revenue, that such persons are actually coming to settle in the Philippines and that the change of residence is bonafide; E. Services subject to percentage tax under Title V of the Code, as amended; F. Services by agricultural contract growers andShow MoreRelatedThe Tax Reform Act Of 19972179 Words   |  9 Pagesbecause the lower the tax burden the higher the revenue which equivale ntly paid out in forms of wages and salaries or dividends (Lynn, 2015). The word tax comes from the latin word taxo which means I estimate. It varies from different countries and how they are paid. In the Philippines, taxes can be grouped to national taxes and local taxes. National taxes are those based on the Tax Reform Act of 1997 also known as the Republic Act No. 8424. The Tariff and Custom Code of the Philippines which levied theRead MoreIndustry Analysis : Business Analysis1258 Words   |  6 Pages P.E.S.T.E.L Analysis â™ £ POLITICAL The VAT or the Value Added Tax, which is added up to the selling price of a good affects the business as a whole. Dough-It depends on it in the sense that it influences the price of the product and the frequency the customers will be willing to buy the product. â™ £ ECONOMICAL The inflation rate is a factor that Dough-It should consider. The inflation rate has an effect on the value of money and on customer behavior – it is the increase of overallRead MoreQ a - Review of Chart of Accounts - Philippines3652 Words   |  15 Pages1 Review of Chart of Accounts – Philippines Questions and Suggested Answers 1. In China GAAP, the bonds or stocks purchased are categorized as Held-for-trading or Available for sale or Long term investment, based on the purpose of purchase. Does Philippine GAAP have similar categorization? Philippine client want to separate the marketable securities to current or non-current, it means short or long term, right? Answer: The Philippine Financial Reporting Standards (PFRS) [based from InternationalRead MoreEconomic Problem in the Philippines1582 Words   |  7 Pages10 Economic Problems of the Philippines 1. Over-dependence on Global Economy The growth of the Philippines economy drastically slowed to just 3.6% in the first three quarters of 2011, which is significantly less than the 7%-8% growth targeted by administrations Philippine Development Plan (PDP). Though the slowdown may have been due to the ongoing global crisis, it was markedly slower in comparison to other South-East Asian neighbors. Economic performance figures indicated a contractionRead MoreTaxation Reviewer3672 Words   |  15 Pagesrevenues or to provide disincentives to certain activities within the state b. The state can have the power of taxation even if the Constitution does not expressly give it the power to tax c. For the exercise of the power of taxation, the state can tax anything at any time d. 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INTRODUCTION Taxation: Defined As defined by Cooley, taxation is the process or means by which the sovereign, through its law-making body, raises income to defray the necessary expenses of government. It is expressed in another way as a method of apportioning the cost of government among those who in some measure are privileged to enjoy its benefits and must, therefore, bear its burdens. In order to finance the necessary expenses of the governmentRead MoreRamos Administration : The Philippines Essay1550 Words   |  7 PagesAdministration, the Philippines experienced economic growth but also encountered many economic difficulties due to of the lack of foreign investors and coup attempts. In the 1992 elections, Defense Secretary Fidel Ramos, who was endorsed by Aquino, won the presidency with only 23.6 percent of the votes in a seven-way race. Even though Ramos assumed presidency, analysts still viewed the Philippines as a risky investment based off the fact that the per capita income growth in the Philippines was significantlyRead MoreCase Digests7208 Words   |  29 PagesSalazar, Kristine Kim B. 4-DLM 1. Arturo Tolentino vs Secretary of Finance FACTS: Tolentino et al is questioning the constitutionality of RA 7716 otherwise known as the Expanded Value Added Tax (EVAT) Law. Tolentino averred that this revenue bill did not exclusively originate from the House of Representatives as required by Section 24, Article 6 of the Constitution. Even though RA 7716 originated as HB 11197 and that it passed the 3 readings in the HoR, the same did not complete the 3 readingsRead MoreUpdate the Recurring Sin Tax Law that Was Newly Implemented by Benigno Aquino3046 Words   |  12 PagesRationale of the Study This study was drawn to update the recurring sin tax law that was newly implemented by the President of the Philippines, Benigno Aquino by assessing its effect to the consumers of sin products and has given fruitful grounds and suggestions for future research in this field. In belief, the purpose of the imposition of excise tax on sin products is to raise revenues and discouraging the consumption of the tobacco products and alcoholic beverages. It is claimed that higher excise