Value Added Tax (VAT) in the Philippines

[@rdm347]

No fillers and straight to the point. Very helpful for concept recall. Thank you Sir Gerard! 👍

[@gerardcarpizo]

That is the point of this channel. Thanks for the appreciation 👍

[@rich-3380]

You are a literal lifesaver for my subject on taxation. Thank you for doing what you do, you've done such a great service for students struggling in online learning. In times when you feel like giving up remember there are people you've helped out tremendously. ❤

[@gerardcarpizo]

Oh wow, thank you for this great encouragement. 😊

[@ellasagan3069]

Thank you for this lecture, Sir. This will help me a lot. Brief but very helpful.

[@francheskamuega2596]

Thank you sir, for making this video and teaching the topics, it is easy to understand and follow 🥰🥰

[@mingyu4946]

Sir! This is a very good refresher. And actually nalilito pa rin ako but through your illustrations, mas nagegets ko po sya. Thank you so much po! And more videos like this po ♡

[@gerardcarpizo]

Thank you min, will have more in the future! 😊

[@yuriotori5420]

u teach better than my professor, so helpful for a student like me :))) ty

[@gerardcarpizo]

Hi Yuri, I'm glad this helped you.

[@mcjudmarlmaverickdayondon6738]

Hahah

[@mcoico]

Great tutorial video again Sir on VAT or value added tax, very informative for tax payers like me who renders service in the public transport industry, this tutorial video is very helpful to us. Thank you for this very timely and informative video Sir. Looking forward for more:)

[@fevlynb]

galing nyo po mag.explain 👏 very precise .

[@gerardcarpizo]

Thank you, I am encouraged by your comment. 😊

[@cleogrey4061]

Thank you po sir ang galing niyo magturo, sana Customs/ Tariff tax next.. hehehe

[@gerardcarpizo]

Thank you, I am encouraged by your comment👍

[@jonathandelosreyes9433]

Very helpful! Thank you sir Gerard!

[@gerardcarpizo]

You're welcome👍

[@alfietulagan6808]

ang galing bro! :) Good job! :)

[@gerardcarpizo]

Thank you bro! 😊

[@danimari8478]

Thank you so much po! I learned a lot

[@gerardcarpizo]

Thank you for watching! You can watch my other tax videos to learn more about PH taxes. 😊

[@jannahmanabilang499]

Thank you sir!

[@gerardcarpizo]

You're welcome!

[@boyscout-p3u]

hi sir in continuation sa influencer vlogs nyo, i think madami din interested sa topic comparing the option for 8% and use of graduated income tax rate + percentage tax depende sa income bracket. pag nasa 250-400k income mo sa graduated eh 20% na yata tax rate whereas kung 8% pinili mo eh 8% padin sya kahit 2-3M income mo? so mas mababa ang rate sa 8% at mas maganda option ito if under 3m income mo as influencer? i hope you can confirm this in your next vlog po.

[@gerardcarpizo]

Hi James, 20% in excess of 250k based on Net Taxable Income but would still be liable to pay quarterly percentage tax. The 8% optional income tax rate based on Gross Income is in lieu of graduated tax rates and percentage tax. Note also that once 3M is reached (VAT Threshold) it is no longer allowed to use 8% optional rate.

[@jomamaharlika6738]

Thank you bai! :)

[@gerardcarpizo]

Happy to help :)

[@h3nrymorales]

Can you also discuss VAT on inventory items for Merchandise business?

[@jarojuncabel2499]

Good job sir gerard😊😊

[@gerardcarpizo]

Thank you for watching. 😊

[@marlenegalangga9019]

Sir pakituro mo naman po sa mga next tutorial video mo paano magclasify ng zero rated and vat exempt Salamat po.

[@gerardcarpizo]

Yes, I'll have that topic in the future. Thanks for suggesting 👍

[@jonathanllave9776]

Good day po sir! Pwede po ba mag review sa inyo?may tutorial po ba kayo? Thank you po!

[@nikjov13]

Request update on receipts. Which receipts can be considered both vat claimable and withholding deductible, or only vat claimable but not withholding deductible

[@marielaraos8944]

Nexy video po Sana po about filing ng zero sales for real estate :) ..

[@gerardcarpizo]

Hi Mariel, thanks for the suggestion will make one soon.

[@SIDEKICKONYOUTUBE]

please EXPLAIN what is VAT, Zero-Rated, VAT Exempt

[@gerardcarpizo]

Hello. You can watch this: kzbin.info/www/bejne/m5ucfZuHl76Cm80si=FRMlWr4s7bFHeZk8

[@minghaoed8]

Thanks! You're a great help!

[@gerardcarpizo]

You're welcome. 👍

[@rodelatomco8861]

sir with regards po sa advances from customers ng service company ang question ko. ang output vat ba ng advances from customers is part ng deferred tax asset sa balance sheet? tama ba ang entry na debit 112k cash, debit 12k deferred tax asset, credit 12k output tax at credit 112k advances from customers?

[@MichaelMendoza-mp3rm]

Hello Sir, Is renewable energy like solar equipment subject to VAT? Do i need pay the VAT when i buy solar equipment from our local dealers? How does RE VAT exception/credit (if there is) works here in the Philippines? Thanks

[@bryantorres7361]

Hi Mr. Gerard, ask ko lang po: for example mag work ako sa isang construction company as subcontractor na ang rate ay Php 120.00 per square meter. Ang na billing ko for the whole week nasa Php 12,000.00 for 100 square meters accomplishment. The Company required me to issue a vat receipt para ma claim ang Php 12,000.00. 1.) Paano ko ma compute ang vat nito ngayon kong ang expenses ko ay nasa Php 11,000.00: Labor - Php 10,000.00 and gasoline and other expenses Php 1,000.00. 2.) Ano ang dapat na document para sa mga laborer ko as katibayan na need nang BIR makita na nasa Php 10,000.00 ang kanilang kuha, kasi ang work ay pakyawan?

[@BeliJr02]

Thank you for this!!

[@gerardcarpizo]

You're welcome 👍

[@michm.8334]

Sir, can u explain what is prepaid vat? And how is it filed in monthly and quarterly vay return?

[@watchoutkayyy]

Thanks Sir!

[@gerardcarpizo]

You're welcome 😊

[@nabongs8992]

I have a question po. Yung Input tax po ba is for the purchases of inventory lang po ba?? Or lahat po ng purchases nung vat inclusive business is may input vat?

[@jinalyncastro2298]

san po nanggaling yung input vat na 4,200 sa case#4 na problem?

[@RryHershOfficial]

Hi sir. Sa problem 4, bakit Yung input vat sa purchase na P8400, biglang naging P4200 nalang Nung kinompyut Yung vat payable? Bakit din po nagkaroon Ng unused input vat na P4200 ?

[@leusmaximusx]

so , is a VAT exclusive sale are those normally made only by non-VAT-registered sellers ? Normally a VAT-registered Sellers include the VAT in their sales to pass the burden to the buyer immediately, correct ? Thanks

[@gerardcarpizo]

Yes, For Non-VAT establishments, the sale does not have the 12% VAT compoment. You are correct to say that VAT registered sellers shift the 12% tax burden to the consumers.

[@leusmaximusx]

@@gerardcarpizo if the gross sales of a non-VAT Seller exceeded 3M, the BIR will treat the VAT as exclusive on the invoice price, and not on the usual formula of the Ouput VAT = SP * 12/112 (for inclusive sale) shown on your first example. because Ive seen on other YT chanel where the Output VAT formula is = SP * 12% , when exclusive; but they did not discuss the condition ( i.e. non-registered or or even if registered - no official BIR VAT receipts for the sale) I think this distinction should be highlighted in those other chanels, but yours already has the clear examples on the variations, excellent work ! more power to you

[@reynaldocasitas5801]

is there a new law on VAT talking about TRAIN laW on lot purchased in developer or subdivision

[@Rush_The_Rusher]

Sa case number 4, bakit kinalahati ung input vat na 8,400 into 4,200? Ung output ang half diba kasi half is regular sales and the other half is exempt sales, bakit nakalahati din ung sa input? thank you I was just confused.

[@marioopeno8787]

This is a legit question that requires your reply for purposes of clarification. Kindly reply. Thanks

[@nanoelban8622]

As always, nice videos. When do we recognise sales? Upon receipt of payment from client or upon issuance of invoice?

[@gerardcarpizo]

Following the accrual basis of accounting recognition is upon point of sale aka transfer of ownership of goods sold or rendering of services.

[@nanoelban8622]

@@gerardcarpizo Thanks. Keep up the good work

[@gerardcarpizo]

Thank you, I appreciate the kind words.

[@emaria682]

Hi Good day Sir. I would just like to ask if we don't have a product but we provide services will we still have tax applied or it varies depending on revenue annually?

[@gerardcarpizo]

Hi Aria, generally speaking, tax applies whether we sell products or render service. For Business taxes, depending on the annual revenue if percentage tax or VAT applies.

[@rofajanecolete2139]

Hello sir! I hope you can answer my question regarding VAT code requiring to transfer money from a foreign bank to my local bank. How to acquire VAT code?

[@gerardcarpizo]

Pa assist po kayo sa RDO, look for the officer of the day kung paano kumuha ng VAT code. Also, inquire your bank for specific requirements.

[@maureennavarette9768]

Sir, yung input tax sa zero-rated sales is for refund or tax credit yun? I mean d sya pwede i deduct sa output tax but for tax refund or tax credit?

[@recur.999]

Hello sir. What if sir, that the input vat exceeds the output vat? What would be the entry?

[@MarieCYntig]

sir another more info about #online sell

[@camillemanalili4085]

Hi Sir, in relation to Vat but more on the receipt, What if a vatable receipt from the supplier has no vat breakdown? Will the amount in the receipt treated as vat inclusive? Or vat exclusive?? Thank u in advance!

[@leusmaximusx]

VAT exclusive

[@khatv8411]

Hi sir what is input tax allocable to exempt sales?

[@ajjoaquin1180]

Thank you po sir :D

[@gerardcarpizo]

You're welcome 👍

[@katemariemenor7716]

Good afternoon sir! yung mga receivables po ay hndi subject sa VAT ? Thnak u

[@gerardcarpizo]

Hi Kate. If they are related to exempt or non-vat transaction, then yes they are not subject to VAT.

[@leopoldomacatangay5220]

Hi sir, kung non vat registered co. at nag purchased sa vat registered co. Ano journal entry sa non vat registered co. Ty po

[@gerardcarpizo]

Hi Leopoldo, depending on the inventory system it would be a debit to purchases/inevtory and the appropriate acct to be credited. For non-vat taxpayers, they are not allowed to claim input vat.

[@jaysonabenido2517]

hello sir, ask ko lang if non vat ang mga customer namin, at exceed sa 3M ang sales namin, my bearing ba yung sales namin from non vat customer sa pagfile ng 2551Q?

[@bongcamporedondo1]

Sir good day..papaano po yung kung ang supplier mo taga china?may way ba na maging VAT registered sila?

[@reginaldvalencia4454]

Thanks sir , your videos are very helpful,! One question though, in the case of non resident foreign person subject to vat, is the gross income exclusive of vat when computing final tax in their income ? thanks in advance

[@gerardcarpizo]

For non-resident alien not engaged in business (since you said gross income is the tax base) the gross income is exclusive of VAT.

[@reginaldvalencia4454]

@@gerardcarpizo thank you ser :-)

[@mitch956]

@@gerardcarpizo I am an OFW with a condo in the Philippines. Last year I remitted 10,000php for an advance deposit for water bills. VAT was deducted before depositing net amount to my account. When the monthly charges water bills come, will VAT be charged again even if the payment is coming from the net remittance that VAT has already been charged?

[@satsme101]

Sir, nag tetraining po kayo ng individual na gusto matuto pa sa Tax ?

[@gerardcarpizo]

Hi JiM. As of writing this comment, I only provide video lessons here in YT for anyone interested to learn the topics. But I'll consider it once there is a sizable number interested, perhaps thru an online course. :)

[@satsme101]

@@gerardcarpizo sobrang dami pong gustong matuto po lalo na FB po, daming naghahanap po ng ganito po sir. Sana po magkaroon kayl isa po ako sa kukuha ng training po.

[@angiefermo4217]

Sir good day po salamat sa very informative video nio.. May question lng po ako.tanung ko na lng ng example para maigsi lng. Agent po kasi ako ng isang real estate ni juan. Ex. Si juan po ai may real estate company then ginawa nia po etong Incorporation, sinama nia ung 2 pa niang businesses dahil isa po architect, and then vatable na po ung real estate niang firm. Ang position ko po is ganeto. Nakakuha po ako ng 100k na commission then less with holdingtax na 10% = 90k na lng po. Since vatable na po ung company nia tama po bang i less sa 90k nmin na commission ung vat na 12%? 90k-12%vat= 79200. Bali na lessan pa po ako ng 10800.

[@gerardcarpizo]

Hi Angie. 12% VAT is only for vatable taxpayers. Being withheld 10% withholding tax and non-vat you are not required to be withheld the 12%.

[@angiefermo4217]

Meaning to say sir hindi nia po dapat i deducted samin ung VAT na 12%?

[@kumanderdeecee6573]

Sir gudevening, problem po sir Buyer ako ng bahay at lupa worth 5M, not for business, but for bahay lang talaga na matirhan ng maayos, pede po ba ma vat exempt

[@edsdelacruz8468]

Pano po nakuha ung Input VAT na P4,200 sa Case #4?

[@rockyjohn2919]

Sir my business is grocery. Our profit margin ranges 1-3% only due to competition. Expl if my cost of sale is 100k, 103k is my gross sales base on a 3% profit margin. So its quite small. We are Vat registered even for a small business because grocery store can easily surpass 1m sales in a month but with small profit. Our rent and labor expens eats up atleast 60% of our total gross profit or revenue and not counting other expense like electric bill, office supls etc. so I always end up paying more tax than having a profit. Can i less my labor and rent expense before tax because due to the nature of my business? Any advis sir.

[@gerardcarpizo]

For income tax purposes, yes you can. Use itemized deduction instead of OSD. Try to compare should you get a competent bookkeeper that can give you more tax savings versus his/her prof fee.

[@maileenferrer7731]

how about input vat on purchases of a non vat registered taxpayer? what is the entry po?

[@gerardcarpizo]

Hi maileen, as there would be no input vat. Debit purchases and credit cash/ap.

[@maileenferrer7731]

Our purchases with our suppliers automatically has vat in the receipts. should I get a certificate of non vat so i can ask my suppliers not to charge VAT on my purchases?

[@chinchinjapin6708]

Hello Sir Gerard, paano po treatment sa books ng nonvat taxpayer ang Vat amoount na binayaran nya sa isang Vat-registered supplier? Is it part of the cost already? Thank you po

[@gerardcarpizo]

Hi Chinchin. For a non-vat taxpayer, you are correct to say that is part of the cost. In addition, for a non-vat taxpayer, they do not have an account on input/output vat in the chart of accounts.

[@chinchinjapin6708]

@@gerardcarpizo thank you again po :)

[@gerardcarpizo]

Happy to help 👍

[@nickolsonhardware4250]

Gd am sir! Im Vat registered. My Purchases on goods for sale is always over against my Sales because i have always stocks on hand. So my vat output Vat is over against input, is it okay but i still report to bir. Kindly response thanks!

[@kristinecandedeir4981]

Ififill na po ba yung input at ouput vat kahit walang OR?

[@yangking89]

Ask ko lang po, vat registered po ang company namin pero, hindi po nag exceed ng 3M ang income namin na P50,000/m because isa lang naman po ang tenant namin. Dapat po ba ako magpay ng vat or percentage tax? thank u po.

[@gerardcarpizo]

Hi Elizabeth, if the business is VAT registered regardless if it hits the VAT threshold or not, it shall be liable to pay VAT.

[@rohanzec]

If a business is a corporation, but his expected gross sales annually does not exceed 3Million. (For tax saving purposes) can he still Apply as VAT registered company? To maximize the Tax savings on Excess Input taxes? Thanks.🙂

[@gerardcarpizo]

Yes, an entitiy has the option to be VAT-Registered thus be able to claim input vat from purchases. In turn, be able to claim excess input vat for tax savings purposes.

[@janissaandus5296]

Hello po sir..what if lessor's annual income did not exceed 3M?

[@gerardcarpizo]

If vatable lease reciepts does exceed vat threshold then it is not subject to vat. 👍

[@smilinandlaughin]

Sir,additional question pa pala po :) : 1.) VAT: Sir, ano po ba ang basis ng 3M Threshold pag A.) Gross Sales: 1.) As is po? Or 2.) Gross Sales - Sales Ret & Allow - Disc? 3.) At kung ang Gross Selling Price po ba can be basis of the 3M threshold? B.) Gross Receipts: 1.) As is? Or 2.) Gross Receipts + Adv Payments, + Mat Charged + Cash Receipts ? Thank you very much po Sir :)

[@gerardcarpizo]

Base shall be 3M gross sales/receipt after deducting returns/discounts. For seller of goods, net sales per FS is the sales per VAT return. While, seller of services, based on gross receipt i.e., revenue per FS, add/deduct Accounts receivable and unearned revenues,--will be reported in the VAT return.

[@smilinandlaughin]

Ah bale po Sir pag: Gross Sales, hindi na kailangan ibawas ang Sales Allowances? At pag Gross Receipts, hindi na po ina add yung Materials charged for Services and Advance Payments? Bale pag AR Beg at Unearned Rev PLUS po, samantalang LESS pag AR End po, to arrive at the Gross Receipts Base? Lito kasi talaga ako rito po Sir :(

[@gerardcarpizo]

You can refer to Revenue Regulations 16 - 2005, as amended, for comprehensive explanation of VAT. 👍

[@smilinandlaughin]

Ang nandito lang po Sir, Gross Receipts. Wala pong sinabing basis sa Gross Sales, pero meron po sa Gross Selling Price. Ibig sabihin po ba nun Sir, same lang ang meaning ng Gross Selling Price sa Gross Sales?

[@kimmarkbiason2259]

For tax purposes, GS/GSP shall mean net of returns and allowances. In short, it is the total amount of money or its equivalent that the buyer is obliged to pay/give to the seller. Hope this helps. :)

[@smilinandlaughin]

Tax simplified po Sir :). Malaking tulong po sa amin na mga self reviewees this upcoming CPALE Board Exam. Sir question pala po: Pag sinabi po ba Sir na Non Vat, can it also mean na subject po siya sa OPT? Nalito po kasi ako pag Vat Exempt Vs Nonvat. Thank you very much po Sir :)

[@gerardcarpizo]

Not automatic, because there are certain transactions that are VAT exempt and to others are not, even for a VAT-registered entity. Example is sale of necessary goods to PWD or Senior Citizens which are VAT exempt sale if sold to them.

[@smilinandlaughin]

Gets ko na po Sir. Thank you very much po, and God bless :) :) :)

[@gerardcarpizo]

@@smilinandlaughin I'm glad this helped you with your studies. God bless too 👍

[@businessmrpankeyk105]

Hi sir! Considered po ba na Zero VAT Rated ang mga KZbinrs na registered as VAT? 1 year na po kasi kami nag babayad ng VAT then may nag sabi na CPA na Hindi kami dapat nagbabayad ng VAT kasi foreign source ang income. Thank you sir! God Bless!

[@gerardcarpizo]

If Google Adsense is considered as the foreign client, for a VAT registered KZbinr the transaction could be subject to VAT but zero-rated along with other VAT compliances.

[@businessmrpankeyk105]

@@gerardcarpizo thank you so much sa reply sir! ano po sa tingin nyo sir considered po ba na foreign client ang google adsense?

[@pithecophagajefferyi7460]

yung CWT po ba kasama sa computation ng VAT? thanks po

[@gerardcarpizo]

Yes, selling price exlcusive of VAT but gross of the WTX.

[@pithecophagajefferyi7460]

@@gerardcarpizoThank you sir

[@edithaadolfo5478]

our broker charged us 12% VAT{based on the selling price of house and lot} on top of the 5% brokers fee.please let me know if this is right. Thank you.

[@gerardcarpizo]

Hi Editha. You can check via the invoice/receipt provided to you. If the broker is VAT registered, it will be shown on top portion of the invoice/receipt and there is also a breakdown of the VAT component.

[@gerardcarpizo]

Also, if you can also visit their principal place of business (i.e. office) and check the broker's COR, look if they are covered by VAT.

[@jenniferbangit2138]

Hello, example po pano icompute for sale, if unit price P3850 for vat-exclusive and vat-inclusive po.. help po.. thanks!!

[@gerardcarpizo]

VAT Exclusive means, the amount is 100% so you need to add 12% VAT or multiply it to 112% to make it inclusive. Conversely, Inclusive means the amount is already 112% or with VAT.

[@jenniferbangit2138]

@@gerardcarpizo thanks po.. How about yung 1% withholding tax po, kasi nagbigay si client ng 2307..

[@ssppaarrkklle]

Great info. Tagalog naman sa susunod sir

[@gerardcarpizo]

Will try to make some in the future. Thanks for the suggestion, I appreciate it. 👍

[@realsungodnika00]

When ur paying for this vat, does that make u a tax payer?

[@gerardcarpizo]

Hi Jasson. Generally, all those whose pay tax are taxpayers but may not be obliged to remit to the BIR.

[@realsungodnika00]

@@gerardcarpizo so kng high schooler ka tpos di k nmn registered s bir, nagbabayad k lng vat s mga products mu, considered tax payer k n?

[@gerardcarpizo]

Yes that is correct, tho you are not required to file a return of somesort or remit any tax to the BIR.

[@realsungodnika00]

@@gerardcarpizo tnx for d explanation. Elementary schoolers are tax payers as well since they pay products like chippy that has vat.

[@gerardcarpizo]

Conceptually speaking it is the child who gives the money but it may be their parents/guardians who bare the burden of paying.

[@ajjoaquin1180]

May fee po ba pag nag ammend ng 2550q kapag nagsobra ang bayad ng Q1

[@gerardcarpizo]

Hi Aaron, no payment to file an amended return.

[@josephlocquiao151]

Hello Sir Gerald. Ask ko lang po. If importation ng mga mobile phones dito sa Pilipinas, how much tax is added po? How's the procedure of it po ba? Thank you.

[@gerardcarpizo]

The VAT will be 12%. If the importer is VAT registered and is not subject to zero rated sales, then sells the phone--add 12% to selling price and issue VAT invoice/reciept.

[@josephlocquiao151]

@@gerardcarpizo Thank you, Sir. I will be doing a vlog po kasi. Review of incoming phones here in the country.

[@gerardcarpizo]

@@josephlocquiao151 I wish you the best of luck!👍

[@SIDEKICKONYOUTUBE]

wala parin kung hindi mo i explain ang mga nakasulat. binasa mo lang sa labas tapos binasa mo dito. hindi ko parin maintindihan. nag jump na tayo sa "Who are required to file VAT Returns" BEFORE we can discuss "WHAT IS VAT Returns". what is ZERO-RATED ? how can i tell if the sale is ZERO-RATED ? is VAT dependent on SUPPLIER or ITEM ? i mean if the item is VATABLE is it VATABLE on all suppliers who sells this item ? or if a SUPPLIER is "Vatable" does that mean all items we purchase from them are "Vatable" ?

[@gerardcarpizo]

Hello. Pwede mo panuorin ito: kzbin.info/www/bejne/m5ucfZuHl76Cm80si=FRMlWr4s7bFHeZk8 also, sa disclaimer ng video, hindi ito substitute ng due diligence para hindi basahin ang tax code or revenue issuances for proper compliance, primer lang itong video.

[@SIDEKICKONYOUTUBE]

@@gerardcarpizoi searched VAT in the Philippines your video says VALUE ADDED TAX in the Philippines. i clicked because i wanted to learn everything about VAT or at least a simplified summary but still detailing VAT for beginners. do you have that video ?. the link you provided said "Output VAT in the Philippines (Value-Added Tax)" its almost like this video where it did not say Its not for beginners.

[@alvinho5018]

good video but not helpful to the general public. only to selected viewers.

[@insleyjamero6466]

Patulog po

[@aireencastro5418]

@vivian wines