Professional Documents
Culture Documents
CPA
BOARD EXAMS
OUTLINES
by John Mahatma G. Agripa, CPA
TAXATION
VALUEADDED
TAX
Supplementary discussions based on lectures
by Atty. Christopher Llamado and
Atty. Dante de la Cruz, CPA
(CPAR)
DEFINITIONS
TRANSACTIONS:
VAT, ZERO-RATED, VAT-EXEMPT, DEEMED SALE
o
o
o
o
o
o
o
o
VAT THRESHOLDS
OUTPUT VAT
xx
xx
xx
xx
xx
For services, the basis for the 12% output VAT is as follows:
Cash received (receivables not included)
ADD: Advance payments for future services
ADD: Materials charges
Gross selling price
xx
xx
xx
xx
xx
xx
xx
xx
xx
12%
xx
INPUT VAT
xx
xx
xx
xx
xx
xx
xx
xx
xx
The input VAT from the sale the standard input VAT shall be 7%
of the gross selling price (GSP), net of VAT. If the actual input VAT
(12% of the price as purchased from supplier) from the purchase of
goods for the sale to the government is higher than the standard
10