A Mixed transactions [vat registered and registrable]
SM has the following sales for the period
Fertilizers,seeds hog feeds ₱2,000,000.00
Fruits and vegetables ₱300,000.00
groceries ₱3,000,000.00
Clothes,shoes,bags ₱900,000.00
Furniture ₱600,000.00
₱6,800,000.00
Vatable sales
groceries ₱3,000,000.00
Clothes,shoes,bags ₱900,000.00
furniture ₱600,000.00
₱4,500,000.00
B A business man had the following gross receipts from his professional practice and his other business
Gross receipts from dine in customer ₱1,500,000.00
Gross receipts from barbeque stand ₱300,000.00 exempt[simple processing,]
Gross receipts from taxi operation ₱1,300,000.00 common carriers tax OPT of 3%
Fross receipts from professional practice ₱1,000,000.00
Vatable receipts
Dine in customer ₱1,500,000.00
Professional practice ₱1,000,000.00
₱2,500,000.00
C Z Corporation had the following subsidiaries and branches with their corresponding sales
Branches
Iloilo branch ₱900,000.00
Pampanga branch ₱600,000.00
Bohol branch ₱700,000.00
Subsidiaries
Alas60% owned ₱1,700,000.00
Bono 70% owned ₱2,300,000.00
Zcorp sales
Sales to Iloilo branch ₱300,000.00
Sales to Pampanga branch ₱500,000.00
Sales to Bohol branch ₱100,000.00
Sales to Alas ₱190,000.00
Sales to other customers ₱1,500,000.00
Vatable sales of Z Corp
Sales to Alas ₱190,000.00
Sales to other custmer ₱1,500,000.00
Sale of Iloilo branch ₱900,000.00
Sales of Pampanga branch ₱600,000.00
Sales of Bohol branch ₱700,000.00
₱3,890,000.00
₱466,800.00
D Married tax payers
Mr and Mrs Belen had the following sales and gross receipts from their respective business for the year
Mr Mrs
gross receipts from profession ₱1,800,000.00 ₱1,900,000.00
Sales from business ₱200,000.00 ₱1,500,000.00
Sales on their joint business [500K] ₱250,000.00 ₱250,000.00
Vatable sales/receipts ₱2,250,000.00 ₱3,650,000.00
% or VAT VAT
E VAT COMPUTATION AND JOURNAL ENTRIES
E-1 OUTPUT VAT
XYZcompany had the following sales
Sales of 200000 ₱200,000.00
Output vat ₱24,000.00
Invoice amount ₱224,000.00
Entry
Cash/AR ₱224,000.00
Sales ₱200,000.00
Output vat ₱24,000.00
TYPES OUTPUT VAT
1. Regular output vat for domestic sales or receipts
2. Zero output vat for export and other zero rated sales
E-2 INPUT VAT
Vat paid for domestic purchases from vat suppliers or on the importation of goods and services in the course of
XYZcompany purchase goods frm vat supplier . The supplier billed at 89,600
Invoice price ₱89,600.00
Divide ₱1.12
Purchase price ₱80,000.00
Input vat ₱9,600.00 ₱9,600.00
Entry
Purchases ₱80,000.00
Input vat ₱9,600.00
Cash/AP ₱89,600.00
E-3 Computation of vat payable XYZ COMPANY
output vat ₱24,000.00
Less:input vat ₱9,600.00
Vat payable ₱14,400.00
entry
Output ₱24,000.00
Input vat ₱9,600.00
Vat payable/ cash ₱14,400.00
F VAT taxpayer has the following purchases and sales exclusive of VAT
April May
Cash purchases ₱500,000.00 ₱500,500.00
Cash sales ₱800,000.00 ₱600,000.00
Entries
April
Purchases ₱500,000.00
Input vat ₱60,000.00
Cash ₱560,000.00
Cash ₱896,000.00
Sales ₱800,000.00
Output vat ₱96,000.00
Output vat ₱96,000.00
Input Vat ₱60,000.00
Vay payable ₱36,000.00
Vat payable ₱36,000.00
Cash ₱36,000.00
May
Purchases ₱500,500.00
Input vat ₱60,060.00
Cash ₱560,560.00
Cash ₱672,000.00
Output vat ₱72,000.00
Sales ₱600,000.00
Ouput vat ₱72,000.00
Input vat ₱60,060.00
Vat payable ₱11,940.00
Vat payable ₱11,940.00
Cash ₱11,940.00
G Illustration of quarterly vat computations
Taxpayers output and input Vat
January Feb
Output vat ₱200,000.00 ₱350,000.00
Input vat ₱160,000.00 ₱290,000.00
Reporting of VAT
January Feb
Output vat ₱200,000.00 ₱350,000.00
Input vat ₱160,000.00 ₱290,000.00
₱40,000.00 ₱60,000.00
H Illustration monthly and quarterly vat computation
April May
Sales inclusive of Vat ₱3,000,000.00 ₱1,800,000.00
Purchases inclusive of vat ₱2,500,000.00 ₱1,900,000.00
April May
Output ₱321,428.57 ₱192,857.14
Input ₱267,857.14 ₱203,571.43
₱53,571.43 (₱10,714.29)
₱2,678,571.43 ₱1,607,142.86
₱321,428.57 ₱192,857.14
₱2,232,142.86 ₱1,696,428.57
₱267,857.14 ₱203,571.43
I CLASSIFICATION OF SALES OR RECEIPTS FOR VAT PURPOSES
1. ZERO RATED
2. SALES TO GOVERNMENT
3. EXEMPT SALES
4. REGULAR SALES
SUMMARY OF VAT RULES FOR EACH TYPE OF SALES
TYPES OF SALES OUTPUT VAT
EXEMPT SALES NONE
ZERO RATED ZERO
SALES TO GOVERNMENT 12%OF SALES/RECEIPT
REGULAR SALES 12% 0f sales/receipts
> sale of goods destined to a non resident buyer abroad is a zero rated sale even if it involves exempt goods
> The sale of vatable goods or services in the Phils is normally vatable except:
1. made to government /GOCC
2. considered an export or effectively zero rated [sales to exempt person]
> sales of exempt goods and services to government /GOCC REMAIN EXEMPT SALES
J ZERO RATED SALES
> only for vat tax payers
> sales has 0 vat, resulting to negative vat payable.
> this can be claimed thru a vat refund or tax credits to due tax Vat and other tax bligation to BIR
A vat tax payer exported $10,000 goods at 50 per dollar ₱500,000.00
The goods were acquired at 336,00 inlcusive of vat ₱336,000.00
Entry
Purchases / inventory ₱300,000.00
Input vat ₱36,000.00
Cash/ accounts payable ₱336,000.00
Cash ₱500,000.00
Sales ₱500,000.00
Cost of sales ₱300,000.00
Inventory ₱300,000.00
If claimed as refund
Cash ₱36,000.00
Input vat ₱36,000.00
If applied for Tax Credit Certificate[TCC]Note: TCC can be used to settle any tax obligations of the tax payer
Prepaid tax ₱36,000.00
Input vat ₱36,000.00
Or it can be claimed to offset with other vat payable
output vat ₱36,000.00
input vat ₱36,000.00
OTHER ZERO RATED SALES
> domestic sales of good or services to ecozone locators
> person engaged in international transport operations
> sales to persons with indirect tax exemption like IRRI and ADB
K EXEMPT SALES
> applicable to both vat and non vat tax payers
> non vatable sales
1. exempt sale of goods or services or properties
> no output vat on sales and seller is not allowed to credit input tax]
> input traceable to exempt sales is treated as expense of the seller deductible to gross income
2. services specifically subject to percentage tax
K-1 Vat tax payer sold unprocessed agri food products for 600,000 with a cost 450,000. He also purchased packaging
Entries
Purchases/inventory ₱450,000.00
Supplies ₱50,000.00
Input vat ₱6,000.00
Cash/AP ₱506,000.00
Cash ₱600,000.00
sales ₱600,000.00
Cos ₱450,000.00
Supplies expense ₱56,000.00
input vat ₱6,000.00
Invetory ₱450,000.00
Supplies ₱50,000.00
> no output vat on exempt sales
> if the tax payer charged vat on exempt sales he is required to remit the vat on sales
> input vat is to be recorded as part of expense
L Sales to government/GOCC
Output vat 12% 0f sales/receipts
Less Input vat [12-5] 7% claimable input
Final Vat due 5%
Assume that the vat tax payer has the following transaction to government
Sales to the government ₱560,000.00 inclusive of vat
Purchases [cost of sale to government] ₱448,000.00 inclusive of input
entry
Purchases/inventory ₱400,000.00
Input tax ₱48,000.00
Cash/AP ₱448,000.00
Cash/AR ₱535,000.00
Withheld final vat ₱25,000.00
Sales ₱500,000.00
Output vat ₱60,000.00
Output ₱60,000.00
Cost of sales[loss] ₱13,000.00
Input vat ₱48,000.00
Withheld final tax ₱25,000.00
nal practice and his other business
pt[simple processing,]
mon carriers tax OPT of 3%
eir corresponding sales
heir respective business for the year
total
₱3,700,000.00
₱1,700,000.00
₱500,000.00 divided equally if no point of identification or exclusivity
₱5,900,000.00
n of goods and services in the course of business
June total
₱400,000.00 ₱1,400,500.00 ₱168,060.00
₱800,000.00 ₱2,200,000.00 ₱264,000.00
June
Purchases ₱400,000.00
Input vat ₱48,000.00
Cash ₱448,000.00
Cash ₱896,000.00
Sales ₱800,000.00
Output vat ₱96,000.00
Output vat ₱96,000.00
Input vat ₱48,000.00
Vat payable ₱48,000.00
Vat payable ₱48,000.00
Cash ₱48,000.00
VAT REPORTING ₱36,000.00
VAT OUT ₱2,200,000.00 ₱264,000.00 ₱11,940.00
VAT IN ₱1,400,500.00 ₱168,060.00 ₱48,000.00
Vat payable ₱95,940.00 ₱95,940.00
Less April payment (₱36,000.00)
May payment (₱11,940.00)
Vat due June ₱48,000.00
Note: if vat input is higher than vat output, it will just be credited the following period
> normally not refundable
March April
₱250,000.00 ₱190,000.00
₱220,000.00 ₱180,000.00
March quarter April
₱250,000.00 ₱800,000.00 ₱190,000.00
₱220,000.00 ₱670,000.00 ₱180,000.00
₱30,000.00 ₱130,000.00 ₱10,000.00
(₱40,000.00)
(₱60,000.00)
₱30,000.00 Vat due for March
June July
₱2,900,000.00 ₱7,700,000.00
₱2,600,000.00 ₱7,000,000.00
June quarterly
₱310,714.29 ₱825,000.00
₱278,571.43 ₱750,000.00
₱75,000.00
(₱53,571.43)
₱21,428.57
₱2,589,285.71
₱310,714.29
₱2,321,428.57
₱278,571.43
CLAIMABLE INPUT VAT VAT DUE
NONE NONE
ACTUAL IF NOT CLAIMED AS CREDIT OR REFUND NEGATIVE
7% OF SALES/ RECEIPTS NONE
ACTUAL INPUT VAT PAID POSITIVE OR NEGATIVE
e even if it involves exempt goods
other tax bligation to BIR
₱300,000.00
ny tax obligations of the tax payer
tible to gross income
t 450,000. He also purchased packaging supplies worth 56K inlclusive of 6K vat
vat on sales
₱500,000.00
₱400,000.00
april
may
june
lowing period
