3 Types of Business Taxes

VAT (12%) OPT (3%) EXCISE Indirect tax

a) Sale, barter, exchange of goods/services

b) Lease of good/s in the normal course of business

c) Importation (whether in the course of business or not) Privilege tax Ad valorem tax

NOT : a) VAT registered person b) NOT exempt from

business tax AGR/S 100k in any 12 month period

Imposed: a) on manufacturer/importer

(taxpayer) b) in addition to VAT

harmful to health sin taxes taxes on non-essential goods might deplete natural resources (automobiles/minerals) * articles/goods movable properties

3 Ways to be Liabe to VAT

Mandatory Optional Estoppel whether VAT registered or NOT, liable for 12& VAT For the past/next(expected-there are reasons to believe) 12 months aggregate AGR/S will exceed 1919500 Sale of goods/services NOT mentioned in 109a to 109v (VAT exempt transactions) Persons required to register as VAT taxpayer but failed to register RTvN (Radio Television Network) AGR of preceding year exceed 10M *mandatory reg. applies w/in 30 days from end of taxable year

AGR/S NOT exceeding 1919500 shall be irrevocable for 3 yrs from the date of registration pag nagregister ka lang liable;kung hindi, liable sa OPT RTvN (Radio Television Network) AGR of preceding year DO NOT exceed 10M may opt for VAT registration

issuance of VAT receipts for VAT exempt transactions company engaged in VAT exempt transaction but issued receipts Subject to: a) OPT (3%) b) VAT (12%) c) 50% surcharge (based on amount of VAT collected d) customers allowed input VAT

RTvN (Radio Television Network)

3% OPT optional mandatory NOT VAT registered or exempt frm bus.tax 0 100k 1919500

AGR 10M

NO

12% VAT

3% OPT

Option to VAT

YES

NADZ