vat
DESCRIPTION
-TRANSCRIPT
VAT EXEMPT(v)International Shipping
From Tokyo to Manila
Case 1: passengers and cargoes from Tokyo to Manila then unload, took passengers and cargoes back to Tokyo - - VAT Exempt Tokyo Manila Tokyo
Case 2: passengers and cargoes from Tokyo to Manila then unload, took passengers and cargoes from Manila, then Manila to Cebu then Cebu to Tokyo - - VAT exempt
Tokyo Manila Cebu Tokyo
Case 3:
Tokyo
Manila
Cebu Manila Tokyo
Subject to VAT
OUTPUT TAX Actual Sales
Regular
0 Rated
Deemed Sales
INPUT TAX
1. Passed on VAT additional amount incurred when your purchase
2. Transitional Input Tax
3. Standard
4. Withholding VAT
5. VAT paid in advance
Requisites for Input Tax
1. The buyer is VAT registered2. Transaction is in the course of trade or business3. The transaction is supported by VAT official receipts or VAT invoices (TIN-VAT)If you are not VAT registered, you cannot claim input tax creditIf VAT registrable he cannot claim input tax credit but there is output tax
PURCHASE OF SERVICES
Service provider
Buyer1. Bill is sentAR 112,000
Service expense
112,000
Service income 100,000 Deferred Input Tax 100,000
Deferred OT 12,000
Accounts Payable
12,0002. Payment is Cash112,000
AP
112,000
received/made
AR
112,000Cash
112,000
Deferred OT12,000
IT
12,000
OT
12,000
Deferred Input Tax
12,000TRANSACTION DEEMED SALES
Ex. Transaction 1: Mr X. retired from business, unsold goods 100,000
Goods on hand are deemed sale ( 100,000 *12% =12,000) to be paid by Mr. X
Mr. Y received from X the unsold goods and he was able to sold them for 200,000
OT on actual sales (200,000 * 12%)
24,000
- VAT on deemed sales (input tax credit)
12,000
VAT Payable
12,000
** Yung biniyaran ni X (seller) ay naging input tax ni Y (buyer)
3. Exercise
a. Cash/AR1,120,000
Sales-VAT1,000,000
OT
120,000
b. Cash/AR500,000
Sales should be properly labeled
Sales exempt500,000
c. Cash/Receivable 300,000
Sales 0 rated
d. Supplies150,000
IT
18,000
Cash/Payable 168,000
e. Purchases 200,000
IT 24,000
Cash/Payable224,000
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