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 TRANSFER TAXES, VALUEADDED TAX AND OTHER

PERCENTAGE TAXES

 Atty. Vic C. Mamalateo

August 8-13, 2013

Ateneo College of Law, MakatiCity

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•

Title III:• TRANSFER TAXES

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ESTATE TAX

• Estate Tax is a ta !"#i"$ %& t'" t(a&s)issi%& %* +(%+"(ti"s *(%) a$""$"&t t% 'is '"i(s .t is &%t a ta %& +(%+"(t/ &%( %& t'" t(a&s*"(%( %(t(a&s*"("" .t is a& "is" ta a&$ its %"t is t% ta t'" s'i*ti&g %*"%&%)i "&"ts

• Donation mortis causa –

.& %&si$"(ati%& %* $"at', it'%ut t'" $%&%(4s i&t"&ti%& t% !%s" t'"t'i&g %"/"$ %( its *("" $is+%sa! i& as" %* su(#i#a! – 5"i&g t"sta)"&ta(/ i& &atu(", it is ")%$i"$ i& a !ast i!! a&$

t"sta)"&t6 it is &%t a %&t(at ut a !"ga/ –  T(a&s*"( %"/s &% tit!" %( %&"(s'i+ t% t'" t(a&s*"("" "*%(" $"at'

%* t(a&s*"(%(, %( t'" t(a&s*"(%( ("tai&s %&"(s'i+, *u!! %( &a7"$, %* t'"+(%+"(t/ %"/"$

 –  T(a&s*"( is ("#%a!" "*%(" t'" t(a&s*"(%(4s $"at' a&$ ("#%ai!it/

)a/ " +(%#i$"$ i&$i("t!/ / )"a&s %* t'" ("s"(#"$ +%"( i& t'"$%&%( t% $is+%s" %* t'" +(%+"(t/ %"/"$

 –  T(a&s*"( %u!$ " #%i$, i* t(a&s*"(%( su(#i#"$ t'" t(a&s*"("", %( i*!"ga/ is &%t ")%$i"$ i& a #a!i$ i!!

 – 5"i&g i& t'" *%() %* a i!!, $%&ati%& mortis causa is &%t a"+t"$ /t'" $%&"" $u(i&g t'" $%&%(4s !i*"ti)"

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ESTATE TAX

• D"at' is t'" g"&"(ati&g s%u(" %* t'" +%"( t% ta (Lorenzo v. Posadas)N% )a&ua! %( +'/sia! t(a&s*"( %* t'" +(%+"(t/ is ("ui("$ *%( t'""stat" ta t% a(u"

• 9Residene: ("*"(s t% t'" +"()a&"&t '%)", t'" +!a" t% 'i''"&"#"( as"&t, *%( usi&"ss %( +!"asu(", %&" i&t"&$s t% ("tu(&,a&$ $"+"&$s %& *ats a&$ i(u)sta&"s, i& t'" s"&s" t'at $is!%s"

i&t"&t (Corre v. Tan Corre) .t is &%t &""ssa(i!/ t'" atua! +!a" %*("si$"&" at t'" ti)" %* $"at'• T!e law in fo"e at t!e ti#e of deat! of t!e deedent

go$e"ns%• A!! +(%+"(ti"s a&$ i&t"("sts i& +(%+"(ti"s %* t'" $""$"&t at t'" ti)"

%* 'is $"at' s'a!! " i&!u$"$ i& 'is g(%ss "stat" H%"#"(,+(%+"(ti"s t(a&s*"(("$ %( i&t"("sts ("!i&uis'"$ / t'" $""$"&t

"*%(" 'is $"at' a(" g"&"(a!!/ "!u$"$ *(%) 'is g(%ss "stat"•  T'" "stat" s'a!! " a++(ais"$ at its *ai( )a(7"t #a!u" at t'" ti)" %*

$"at' – Real &"o&e"ty; *ai( )a(7"t #a!u" as $"t"()i&"$ / t'" C.R – S!a"es of stoks; *ai( )a(7"t #a!u" as s'%& i& t'" au$it"$

&a&ia! stat")"&ts !%s"st t% t'" $at" %* $"at' %* t'" $""$"&t

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ESTATE TAX

• '"oss estate:  Con()gal Exl)si$e Total – R"a! +(%+"(t/ – P"(s%&a! +(%+"(t/

• Less: Ded)tions: – F)ne"al ex&enses *+ x g"oss estate, not to exeed -.//,/// o" at)al

ex&0 –  "$6 stat")"&t s'%i&g$is+%siti%& %* +(%""$s %* !%a&, i* %&t(at"$ it'i& 3/"a(s *(%) $at" %* $"at' – U&+ai$ ta"s a&$ )%(tgag"s – Medial ex&enses *in)""ed wit!in 1 yea" &"io" to !is deat!, s)2stantiated

wit! "eei&ts, and not exeeding -+//,///0 – Fa#ily !o#e *not to exeed -1 M0 3 barangay  lea"ane – Standa"d ded)tion *-1 M0 – -"o&e"ties &"e$io)sly taxed *$anis!ing ded)tion0 –

 T(a&s*"(s *%( +u!i us" – A)%u&t (""i#"$ / '"i(s u&$"( RA ?@1, +(%#i$"$ su' a)%u&t is i&!u$"$ i&

g(%ss "stat" %* $""$"&t – S!a"e of t!e s)"$i$ing s&o)se *+/ of net on()gal estate0

• Net Taxa2le Estate• Estat" ta BFi"st -.//,/// is exe#&t6 *(%) P200,0016 a&$ 20 %& %#"( P10

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ESTATE TAX

• 456 IS T5E DECEDENT AND 45AT -R6-ERTIES F6RM -ART6F 5IS 'R6SS ESTATE7

 – Resident deedent: Citi>"& %( ("si$"&t a!i"&• .&!u$" i& 'is g(%ss "stat" a!! +(%+"(ti"s, ("a! %( +"(s%&a!,

ta&gi!" %( i&ta&gi!", ("ga($!"ss %* !%ati%& Bit'i& %(

it'%ut t'" P'i!i++i&"s• R"i+(%a! "")+ti%& as t% i&ta&gi!" +"(s%&a! +(%+"(t/

 – '"& *%("ig& %u&t(/ $%"s &%t i)+%s" t(a&s*"( ta %&i&ta&gi!"

 – '"& *%("ig& %u&t(/ i)+%s"s t(a&s*"( ta ut g(a&ts si)i!a("")+ti%& *(%) ta i& ("s+"t %* i&ta&gi!" +(%+"(t/

 – Non8"esident deedent: N%&-("si$"&t a!i"&• .&!u$" i& 'is g(%ss "stat" a!! +(%+"(ti"s !%at"$ i& t'"

P'i!i++i&"s• F%( i&ta&gi!" +(%+"(ti"s, us" t'" +(i&i+!" mobilia

sequuntur personam = Taati%& %* i&ta&gi!"s *%!!%s t'"("si$"&" %( $%)ii!" %* t'" %&"(, ""+t *%( "(tai&i&ta&gi!" +(%+"(ti"s )"&ti%&"$ i& S" 10?, N.RC

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ESTATE TAX

• INTAN'I9LE -R6-ERTIES T5AT 5AE SIT;S IN T5E

-5ILI--INES (Sec. 104, !"C); – F(a&'is" 'i' is ""(is"$ i& t'" P'i!

 – S'a("s, %!igati%&s %( %&$s issu"$ / a&/%(+%(ati%& %(ga&i>"$ i& t'" P'i!

 – S'a("s, %!igati%&s %( %&$s issu"$ / a&/*%("ig& %(+%(ati%&, 8 %* t'" usi&"ss %*'i' is !%at"$ i& t'" P'i! %( i* su' +(%+"(ti"s

'a#" aui("$ usi&"ss situs i& t'" P'i! B"!!s Fa(g%as"

 – S'a("s %( (ig'ts i& +a(t&"(s'i+, usi&"ss %(i&$ust(/ "sta!is'"$ i& t'" P'i!i++i&"s

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ESTATE TAX

• DECEDENT

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ESTATE TAX

• TRANSFER IN C6NTEM-LATI6N 6F DEAT5

•  T(a&s*"( / $""$"&t %* +(%+"(t/ %( i&t"("st t'"("i&, / t(ust %(%t'"(is", i& %&t")+!ati%& %( t% ta7" "I"t i& +%ss"ssi%& %("&%/)"&t at %( a*t"( $"at', %( u&$"( 'i' '" ("tai&"$ *%( 'is !i*"%( *%( a&/ +"(i%$ 'i' $%"s &%t i& *at "&$ "*%(" 'is $"at' B1

t'" +%ss"ssi%& %( "&%/)"&t %*, %( t'" (ig't t% t'" i&%)" *(%)t'" +(%+"(t/, %( B2 t'" (ig't t% $"sig&at" t'" +"(s%& '% s'a!!+%ss"ss %( "&%/ %( t'" i&%)" t'"("*(%) .t $%"s not %#"(bona%&de sa!" *%( a& a$"uat" a&$ *u!! %&si$"(ati%& i& )%&"/ %()%&"/4s %(t'

• 9T"ansfe"s in onte#&lation of deat!: ("*"(s t% t'"t'%ug't %* $"at', as a %&t(%!!i&g )%ti#", 'i' i&$u"s t'"$is+%siti%& %* t'" +(%+"(t/ *%( t'" +u(+%s" %* a#%i$i&g t'"ta

• Ci")#stanes taken into ao)nt

 – Ag" a&$ '"a!t' %* $""$"&t at ti)" %* gi*t

 – L"&gt' %* ti)" "t""& $at" %* gi*t a&$ $at" %* $"at'

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ESTATE TAX

• RE6CA9LE TRANSERS *t"ansfe" wit!"etention o" "ese"$ation of e"tain "ig!ts0

• 9Re$oa2le t"ansfe"s: %#"(s t(a&s*"(s, /t(ust %( %t'"(is", '"(" t'" "&%/)"&t as

su"t at t'" $at" %* 'is $"at' t% a&/ 'a&g"t'(u t'" ""(is" %* a +%"( t% a!t"(, a)"&$,("#%7" %( t"()i&at", %( '"(" su' +%"( is("!i&uis'"$ i& %&t")+!ati%& %* $"at' – D""as"$ $"!a("$ '"( %"/a&" as a $%&ati%&

mortis causa a&$ *%(a$" t'" ("gist(ati%& %* t'" $""$u&ti! a*t"( '"( $"at' (Pui' v. Penaorida)

 – .t $%"s not %#"( bona%&de sa!" %* +(%+"(t/ *%( a&a$"uat" a&$ *u!! %&si$"(ati%& i& )%&"/ %( )%&"/4s%(t'

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ESTATE TAX

• T"ansfe" of &"o&e"ty )nde" a gene"al &owe" ofa&&oint#ent – 5/ i!!, %( / $""$ ""ut"$ i& %&t")+!ati%& %* $"at',

%( / $""$ '"(" '" ("tai&s *%( 'is !i*" %( a&/ +"(i%$ &%tas"(tai&a!" it'%ut ("*"("&" t% 'is $"at', 'i' i&

*at $%"s &%t "&$ "*%(" 'is $"at' – P%ss"ssi%& %( "&%/)"&t %*, %( t'" (ig't t% t'" i&%)"*(%), t'" +(%+"(t/, %( t'" (ig't t% $"sig&at" t'" +"(s%&s'% s'a!! +%ss"ss %( "&%/ t'" +(%+"(t/ %( t'" i&%)"t'"("%* 

 – E"+t i& as" %* bona%&de sa!" *%( a& a$"uat" a&$ *u!!%&si$"(ati%& i& )%&"/ %( )%&"/4s %(t'

• P%"( %* a++%i&t)"&t is 9gene"al= '"& it gi#"s t% t'"$%&"" t'" +%"( t% a++%i&t a&/ +"(s%& '" +!"as"s, t'us'a#i&g as *u!! $%)i&i%& %#"( t'" +(%+"(t/ as t'%ug' '"%&"$ it .t is 9s&eial= '"& t'" $%&"" a& a++%i&t %&!/a)%&g a ("st(it"$ %( $"sig&at"$ !ass %* +"(s%&s %t'"(

t'a& 'i)s"!*

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ESTATE TAX

• -"oeeds of life ins)"ane• Taxa2le;

 – 5"&"ia(/ is t'" "stat" %* t'" $""as"$, 'is ""ut%( %(a$)i&ist(at%(, i(("s+"ti#" %* '"t'"( %( &%t t'" i&su("$("tai&"$ t'" +%"( %* ("#%ati%&

 – 5"&"ia(/ is %t'"( t'a& t'" $""$"&t4s "stat", ""ut%(%( a$)i&ist(at%(, '"& t'" $"sig&ati%& %* "&"ia(/ is &%t"+("ss!/ )a$" i(("#%a!" JNOTE; U&$"( t'" .&su(a&"C%$", i&su(a&" +%!ii"s a(" +("su)"$ ("#%a!"K

• Not Taxa2le; – Ai$"&t i&su(a&" +(%""$s B&%t !i*" i&su(a&" – P(%""$s %* g(%u+ i&su(a&" +%!ii"s B&%t ta7"& %ut %& t'"

!i*" %* t'" $""$"&t – 5"&"ia(/ BNOT $""$"&t4s "stat", ""ut%( %(

a$)i&ist(at%( is $"sig&at"$ i(("#%a!/ – GS.S, SSS, a&$ AFP RS5S

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ESTATE TAX

• RE>;ISITES 6F -R6-ERT? -REI6;SL?TAXED *ANIS5IN' DED;CTI6N0 – D"at' – .$"&tit/ %* t'" +(%+"(t/ –

.&!usi%& %* t'" +(%+"(t/ Bi& g(%ss "stat" %( g(%ssgi*t – P("#i%us taati%& %* t'" +(%+"(t/ B"stat" ta %(

gi*t ta %& +("#i%us i&'"(ita&" %( gi*t as +ai$

 – N% +("#i%us #a&is'i&g $"$uti%& %& t'" sa)"

+(%+"(t/ Bt% +("!u$" a++!iati%& %* #a&is'i&g$"$uti%& %& sa)" +(%+"(t/ )%(" t'a& %&" – P"("&tag" %* $"$uti%& $"("as"s %#"( a

+"(i%$ %* /"a(s B%( 20 ("$uti%& "#"(/ /"a(

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ESTATE TAX

• F6RM;LA 6F ANIS5IN' DED;CTI6N

• Va!u" ta7"& %* +(%+"(t/ +("#i%us!/ ta"$ Bas $"!a("$ i& +(i%($""$"&t4s g(%ss "stat"

• Less; %(tgag" $"t +ai$ (1st  deduction)•

.&itia! asis• .&itia! asis di$ided 2y t'" #a!u" %* g(%ss "stat" %* +("s"&t

$""$"&t MM• M)lti&lied 2y "+"&s"s, i&$"t"$&"ss, "t a&$ t(a&s*"(s

*%( +u!i +u(+%s"s• E@)als 2nd  deduction• .&itia! asis less 2&$ $"$uti%& Fi&a! asis #)lti&lied 2y 

a++!ia!" (at" %* #a&is'i&g $"$uti%& • A)%u&t %* #a&is'i&g $"$uti%& $"$uti!" *(%) t'" "stat"

%* s"%&$ $""$"&t

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ESTATE TAX

• N%ti" %* $"at' B2 )%&t's *(%) $"at' ("ui("$;

 –  T(a&s*"(s su"t t% "stat" ta, %(

 – E")+t t(a&s*"(s, ut g(%ss "stat" """$s P20,000

• .* g(%ss "stat" """$s P2 )i!!i%&, atta' t% "stat" ta

("tu(& a "(ti"$ stat")"&t %* ass"ts a&$ it")i>"$$"$uti%&s

• Fi!" "stat" ta ("tu(& a&$ +a/ ta it'i& six #ont!s *(%)$at" %* $"at' .* +a/)"&t %u!$ i)+%s" u&$u" 'a($s'i+,+a/)"&t $at" )a/ " "t"&$"$ *%( &%t )%(" t'a& /"a(s

Bi* u$iia!!/ s"tt!"$, %( 2 /"a(s Bi* s"tt!"$ "t(a-u$iia!!/•  Ta !"a(a&" is ("ui("$ "*%(" a&/ t(a&s*"( %* s'a("s )a/

" )a$" i& t'" &a)" %* &" %&"(s 5a&7s s'a!! &%t a!!%a&/ it'$(aa! *(%) a&7 a%u&t %* $""$"&t, u&!"ss"stat" ta 'as ""& +ai$, ut it )a/ a!!% it'$(aa! &%t t%

"""$ P20,000 it'%ut su' "(tiati%& *(%) t'" C.R

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DONOR4S TAX

• Dono"

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DONOR4S TAX

•  T(a&s*"( %* +(%+"(t/ )a/ " i& t(ust %( %t'"(is",$i("t %( i&$i("t T(a&s*"( "%)"s %)+!"t"a&$ taa!" %&!/ '"& t'" $%&%( 'as $i#"st"$'i)s"!* %* a!! "&"ia! i&t"("st i& 'i)s"!* %( 'is"stat"

• D%&%(4s ta (at"s – D%&"" is #e#2e" of t!e fa#ily

• Fi"st -1//,/// of net gift is exe#&t• 2 %& P100,001 t% P200,000• 1 %& a)%u&t %#"( P10

 –

D%&"" is a st"ange" = 30 %* &"t gi*t• 9St"ange": is a +"(s%& '% is not a Ba (%t'"(,

sist"( B'"t'"( / '%!" %( 'a!*-!%%$, s+%us",a&"st%(, a&$ !i&"a! $"s"&$a&t6 %( B ("!ati#" /%&sa&gui&it/ i& t'" %!!at"(a! !i&" it'i& t'"*%u(t' $"g("" %* ("!ati%&s'i+

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DONOR4S TAX

• Dono" – .&$i#i$ua!

• Citi>"& a&$ ("si$"&t a!i"& -- Taa!"• N%&-("si$"&t a!i"& = Taa!" %& +(%+"(t/ !%at"$ i&

t'" P'i! – C%(+%(ati%&

• D%)"sti %(+%(ati%& a&$ ("si$"&t *%("ig&%(+%(ati%& -- Taa!"

• N%&-("si$"&t *%("ig& %(+%(ati%& = Taa!" %&+(%+"(t/ !%at"$ i& t'" P'i!

• Donation of on()gal – a$" / %t' s+%us"s = TO $%&ati%&s – a$" %&!/ / %&" s+%us" (Tan' +o v. oard o Ta-

 *ppeals no/ CT*) = ONE $%&ati%&

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DONOR4S TAX

• C)#)lati$e o#&)tation of dono"

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9;SINESS TAXES

• AT BTit!" .V, N.RC

• Taxa2let"ansations – Sa!" %( !"as" %* g%%$s

%( +(%+"(ti"s6 "is" ta*%()s +a(t %* GSP

 – Sa!" %( "'a&g" %*s"(#i"s

 – .)+%(tati%& %* g%%$s

• Fo"#)la – Out+ut Ta

 – L"ss; .&+ut Ta

 – VAT Pa/a!"BE"ss

.&+ut Ta

• N6N8ATEXEM-T

FR6M AT• T"ansation is

s)2(et to 6t!e"-e"entage Tax *Title, NIRC0

 –  Ta is i)+%s"$ %& G(%ssR""i+ts %( G(%ss.&%)"

• AT is i#&osed inaddition to ExiseTax on t"ansation*Title I, NIRC0

• No AT o" 6-T isi#&osed on

t"ansation *Se 1/B,NIRC0

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6T5ER -ERCENTA'ETAXES

• S" 11 = &e"entage tax %& sa!" %( !"as" %* g%%$s,+(%+"(ti"s %( s"(#i"s %* &%&-VAT ("gist"("$ +"(s%&s '%s" a&&ua!g(%ss sa!"s %( (""i+ts $% &%t """$ P1

• S" 11 = o##on a""ie"s tax on do#esti o##ona""ie"s 2y land %& t(a&s+%(t %* +ass"&g"(s a&$ 7""+"(s %*ga(ag"s

•

S" 118 = o##on a""ie"s tax on inte"national ai" andsea a""ie"s• S" 11@ = f"an!ise tax on g"antees of "adio ando" T

2"oadasting '%s" g(%ss (""i+ts $% &%t """$ P10 a&$ 2*(a&'is" ta %& g(a&t"" %* gas a&$ at"( uti!iti"s

• S" 120 = 10 %#"(s"as %))u&iati%& ta %& $is+at'%(igi&ati&g *(%) t'" P'i!

• S" 121 = '"oss "eei&ts tax on 2anks• S" 122 = '"oss "eei&ts on nane o#&anies• S" 123 = 2 +(")iu) ta %& !i*" i&su(a&" %)+a&i"s +"( RA

10001 a&$ RC 22-2010, a(' @, 2010• S" 12 = A#)se#ent tax %& +(%+(i"t%(s, !"ss""s %( %+"(at%(s

%* %7+its, aa("ts, nig!t o" day l)2s *10, %i&g"'iiti%&s B10, +(%*"ssi%&a! as7"ta!! ga)"s B1 a&$ (a"t(a7s B30

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EXCISE TAXES

• O& alo!ol +(%$uts – i&", s%t', #%$7a, ""(, "t

• O& to2ao +(%$uts – Ciga("tt"s, t%a%, "t

• O& &et"ole)# +(%$uts – P(")iu) gas, $i"s"!, u&7"( *u"!, LPG, "t

• O& #ine"al +(%$uts – G%!$, si!#"(, %++"(, "t

• O& #isellaneo)s +(%$uts – A)to#o2iles = a&/ ? %( )%(" '""!"$ )%t%( #"'i!", ("ga($!"ss %* s"ati&g

a+ait/, 'i' is +(%+"!!"$ / gas%!i&", $i"s"!, "!"t(iit/ %( a&/ %t'"()%ti#" +%"(, ""+t us"s, t(u7s, a(g% #a&s, ""+s""+&"/s, si&g!" a'assis, a&$ s+"ia! +u(+%s" #"'i!"s B"g, *u&"(a! a(s

 – Non8essential goods B""!(/6 +"a(!s, +("i%us a&$ s")i-+("i%us st%&"s6+"(*u)"s a&$ t%i!"t at"(s6 /a'ts a&$ %t'"( #"ss"!s *%( +!"asu(" %( s+%(ts

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D;TIES 6F ATTAX-A?ERS

• 1 Se)"e Tax&aye" Identiation N)#2e" *TIN0

• 2 Pa/ a&&ua! ("gist(ati%& *"" %* P00 *%( "#"(/ s"+a(at" a&$ $isti&t"sta!is')"&t – R"# R"gs N% -2012, A+( 2, 2012 B+(i)a(/ a&$ s"%&$a(/ ("gist(ati%&

 – R"# R"gs N% 10-2012, "$ %( )a&ua!

• H% File AT "et)"nsdela"ations and &ay AT

• it''%!$ a&$ (")it Fi&a! it''%!$i&g VAT, '"& a++(%+(iat"

• 8 Su)it SLSSLP – R"# R"gs N% 1-2012, F" 20, 2012

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AL;E ADDED TAX

• C5ARACTERISTICS 6F AT S?STEM – Ta %& value added %* ta+a/"(

 – T(a&s+a("&t *%() %* sales ta- 6 RA @33 ("ui("s t'at t'" VAT%)+%&"&t s'%u!$ " s"+a(at"!/ i&$iat"$ i& t'" VAT i%i" %((""i+t

 – 5(%a$-as"$ ta- on consumption %* g%%$s, +(%+"(ti"s a&$s"(#i"s i& t'" P'i!

 – !ndirect ta- •  Ta "")+ti%& %* (u(a! a&7 BRA 33 "t"&$s %&!/ t% ta"s t% 'i' it is

$i("t!/ !ia!" t% +a/, &%t t% VAT, 'i' is a& i&$i("t ta

 – Ta is %!!"t"$ t'(u t'" ta- credit or invoice method • Out+ut ta %& sa!"s !"ss i&+ut ta %& +u('as"s

 – o cascadin' o ta-  i& VAT s/st") Bta is &%t agai& su"t t% ta

 – 9Ta-%inclusive metod: as $isa($"$ i& *a#%( %* 9se&a"ateindiation of AT: s/st") ("" 1#%2011, ov 21, 2011)

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AL;E ADDED TAX

• TAXA9LE -ERS6NS – Selle" of goods o" &"o&e"ties

•  T'"(" is atua! %( $"")"$ sale, 2a"te" o"ex!ange of goods o" &"o&e"ties t'at a("ons)#ed o" fo" ons)#&tion in t!e -!il6

• .& t'" %u(s" %* t(a$" %( usi&"ss6 a&$• Sa!" %* g%%$s %( +(%+"(ti"s is not "")+t *(%) VAT

 – Selle" of se"$ies• List"$ s"(#i"s a(" +"(*%()"$ %( t% " +"(*%()"$ i&

t'" P'i!•

.& t'" %u(s" %* t(a$" %( usi&"ss• F%( a #a!ua!" %&si$"(ati%&• S"(#i"s a(" &%t "")+t *(%) VAT

 – I#&o"te" of goods• '"t'"( $%&" i& t'" %u(s" %* 'is t(a$" %( usi&"ss

%( *%( +"(s%&a! %&su)+ti%&

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AL;E ADDED TAX

• S-ECIAL T?-ES 6F -ERS6NS EN'A'ED IN TAXA9LETRANSACTI6NS

 – Husa&$ a&$ i*" a(" se&a"ate ta+a/"(s6agg"egation ")le

 – U&i&%(+%(at"$ %i&t #"&tu(" u&$"(ta7i&g %&st(uti%&

ati#it/ is su"t t% VAT, a!t'%ug' "")+t *(%) i&%)"ta BRR 10-2012

 – G%#"(&)"&t• 'o$e"n#ental f)ntion; E")+t *(%) VAT• -"o&"ieta"y f)ntion; Su"t t% VAT

 – N%&-st%7, &%&-+(%t ass%iati%& B"g, s%ia! !us,%&$% %(+s, a&$ '%)"%&"(s ass%iati%&s

• Ass%iati%& $u"s a&$ s+"ia! ass"ss)"&ts6 gu"st *""sa&$ *""s *%( us" %* *ai!iti"s = taa!"

• .&%)" *(%) %+"(ati&g ("stau(a&t, %utiu" %( s'%+

%( *%( !"asi&g *ai!iti"s -- taa!"

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AL;E ADDED TAX

• 1*a0 Sale, 2a"te" o" ex!ange *at)al o" dee#ed sale0 – Sa!", a(t"( %( "'a&g" 'as t'" sa)" ta %&s"u"&" –  T'"(" )ust " #a!ua!" %&si$"(ati%& H%"#"(, i* t'" +(%+"(t/

t(a&s*"(("$ is %&" *%( sa!", !"as" %( us" i& t'" %u(s" %* usi&"ss a&$t'" t(a&s*"( %&stitut"s a %)+!"t"$ gi*t, it is a!s% su"t t% VAT

 – Dee#ed sale is su"t t% VAT B%ut+ut ta i& %($"( t% ("%u+

+("#i%us VAT Bi&+ut ta a!!%"$•  T(a&s*"(, us" %( %&su)+ti%& not i& t'" %u(s" %* t(a$" %(usi&"ss %* g%%$s %( +(%+"(ti"s %(igi&a!!/ i&t"&$"$ *%( sa!" %( *%(us" i& t'" %u(s" %* usi&"ss it'$(aa! %* g%%$s i& %&&"ti%&it' t'" t(a$" %( usi&"ss %* t'" ta+a/"( it'%ut a&/ #a!ua!"%&si$"(ati%& s'a!! &%t " t("at"$ as $"")"$ sa!"

• Dist(iuti%& %( t(a&s*"( t%; Ba s'a("'%!$"(s %( i"st%(s as s'a(" i&t'" +(%ts %* t'" VAT-("gist"("$ +"(s%&s6 %( B ("$it%(s i&

+a/)"&t %* $"t6• C%&sig&)"&t %* g%%$s, i* atua! sa!" is &%t )a$" it'i& sit/ B0

$a/s *%!!%i&g t'" $at" su' g%%$s "(" %&sig&"$6 a&$• R"ti(")"&t *(%) %( "ssati%& %* usi&"ss, it' ("s+"t t%

i"&t%(i"s %* taa!" g%%$s "isti&g as %* su' ("ti(")"&t %("ssati%&

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AL;E ADDED TAX

• Ex&o"t sales of goods – Atua! s'i+)"&t %* g%%$s t% a *%("ig& %u&t(/

 – Sa!" a&$ $"!i#"(/ %* g%%$s t% a +"(s%& !%at"$ a&$ $%i&gusi&"ss i& s+"ia! "%&%)i >%&"s a&$ *(""+%(t >%&"s i&

t'" P'i!i++i&"s• 9C)sto#s te""ito"y: is a&/ t"((it%(/ !%at"$ i& t'" P'i!i++i&"s,

""+t s+"ia! "%&%)i >%&"s u&$"( RA @1 BPEQA a&$ %t'"("%>%&" !as a&$ *(""+%(t >%&"s u&$"( RA 22 B5CDA !a, asa)"&$"$, 'i' a(" t("at"$ as *%("ig& t"((it%(i"s / ti%& %* !a(C!" v. Sea'ate Tecnolo'3 Pil, .". o. 1$5#66, 200$7 C!" v. Tosiba!normation 8quipment, .". o. 1$01$4, 200$).

 – T'" %&"+t %* 9fo"eign te""ito"y 2y tion of law:a++!i"s %&!/ *%( VAT +u(+%s"s, "aus" *%( i&%)" ta+u(+%s"s, "%>%&"s a&$ *(""+%(t >%&"s a(" t("at"$ asit'i& t'" P'i!i++i&"s

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AL;E ADDED TAX

• Sale, 2a"te" o" ex!ange of goods *o"dina"y o"a&ital0

 – T'" sa!", a(t"( %( "'a&g" %* g%%$s )ust " %&" t'at is%&t")+!at"$ u&$"( t'" Ta C%$" T'us, s"u(iti"s %((%i&ga&$ !"&$i&g $%&" t% su++%(t t(a$i&g st(at"gi"s %( s"tt!")"&t

%!igati%&s, i& "'a&g" *%( a %!!at"(a! a&$ t'" +(%)is" t%("tu(& t'" "ui#a!"&t s'a("s %( s"u(iti"s at t'" "&$ %* t'"%((%i&g +"(i%$ &%t t% """$ t% /"a(s +u(sua&t t% a ast"(Ag("")"&t, is "")+t *(%) VAT ("" 10%2006, 9une 25, 2006)

 – .* t'" ("uisit"s *%( taati%& %* sa!" %* g%%$s a(" +("s"&t,

("gist(ati%& %* s"!!"( a&$ status %* t'" u/"( a(" &%t i)+%(ta&t*%( VAT +u(+%s"s

 – Sa!" %* g%%$s *%( t'" sa)" +(i" %( at a +(i" !%"( t'a& its %st$%"s &%t "")+t su' sa!" *(%) VAT

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AL;E ADDED TAX

 –  T'" as"&" %* +(%t i& t'" +"(*%()a&" %* taa!"s"(#i"s $%"s &%t )a7" su' ati#it/ *%( a *"" "")+t*(%) VAT (C!" v. C:;*S8"C:, " 12$5$$, ;ar 50, 2000).

• 1*20 'oods o" &"o&e"ties #)st 2e loated int!e -!ili&&ines and ons)#ed o" destinedfo" ons)#&tion in t!e -!il% – S+"ia! "%&%)i >%&"s u&$"( RA @1 BPEQA La a&$

*(""+%(t >%&"s u&$"( RA 22 B5CDA La a(" t("at"$ as*%("ig& t"((it%(i"s / ti%& %* !a H"&", i)+%(tati%&%* g%%$s / a s+"ia! "%&%)i %( *(""+%(t >%&"

"&t"(+(is" s'a!! " "")+t *(%) VAT a&$ ust%)s $uti"sa&$ i!! " su"t t% VAT a&$ $uti"s %&!/ u+%& t'"i(it'$(aa! *(%) t'" ust%)s ust%$/

 – Destination -"ini&le Bs%)"ti)" ("*"(("$ t% 9(%ss%a($"( $%t(i&"::

• E+%(t sa!"s %* g%%$s a(" >"(%-(at"$ B0 VAT, +(%#i$"$

s"!!"( is VAT-("gist"("$ +"(s%&•

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AL;E ADDED TAX

• .% In t!e o)"se of t"ade o" 2)siness – T'" ("gu!a( %&$ut %( +u(suit %* a %))"(ia! %( a&

"%&%)i ati#it/, i&!u$i&g t(a&sati%&s $"")"$ i&i$"&ta!t'"("t%, ("ga($!"ss %* '"t'"( %( &%t t'" +"(s%& "&gag"$t'"("i& is a &%&-st%7, &%&-+(%t +(i#at" %(ga&i>ati%&Bi(("s+"ti#" %* t'" $is+%siti%& %* its &"t i&%)" a&$ '"t'"(

%( &%t it s"!!s "!usi#"!/ t% )")"(s %( t'"i( gu"sts, %(g%#"(&)"&t "&tit/ – T'" (u!" %* ("gu!a(it/ t% t'" %&t(a(/ &%tit'sta&$i&g,

s"(#i"s ("&$"("$ i& t'" P'i!i++i&"s / &%&("si$"&t *%("ig&+"(s%&s s'a!! " %&si$"("$ as "i&g ("&$"("$ i& t'" %u(s"%* t(a$" %( usi&"ss (Sec 10$, !"C)

 – .s%!at"$ t(a&sati%&s a(" not su"t t% VAT – Inidental ino#e follows taxation of t!e &"ini&al

ati$ity T'us, sa!" %* s(a+ )at"(ia!s / a VAT-("gist"("$+"(s%& is su"t t% VAT as t'" sa!" %* its )ai& &is'"$+(%$uts 5ut ("&ta! i&%)" %* a a&7 is su"t t% g(%ss(""i+ts ta, &%t VAT

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AL;E ADDED TAX

• 9Inidental: )"a&s s%)"t'i&g "!s" as +(i)a(/6s%)"t'i&g &""ssa(/, a++"(tai&i&g t%, %($"+"&$i&g u+%& a&%t'"(, 'i' is t"()"$ t'"+(i&i+a! H"&", a& is%!at"$ t(a&sati%& is &%t

&""ssa(i!/ $isua!i"$ *(%) "i&g )a$"i&i$"&ta!!/ i& t'" %u(s" %* t(a$" %( usi&"ss

• A!t'%ug' t'" +(i)a(/ usi&"ss %* a ta+a/"( is

)a&u*atu(i&g %* ga()"&ts *%( sa!" a(%a$, t'"sa!" %* )%t%( #"'i!" t% its G"&"(a! a&ag"( ist(a&sati%& i&i$"&ta! t% su' usi&"ss, su"t t%VAT (CS arments v. C!"7 ";C 1$%2011, ;ar 16, 2011).

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AL;E ADDED TAX

• Non8taxa2le t"ansations – C'a&g" %* %&t(%! %* a %(+%(ati%& / t'" auisiti%& %*

t'" %&t(%!!i&g i&t"("st %* su' %(+%(ati%& / a&%t'"(st%7'%!$"( %( g(%u+ %* st%7'%!$"(s•

 T(a&s*"( %* ass"ts *%( s'a("s %* st%7s '"(" t'" t(a&s*"(%(gai&s %&t(%! %* t'" %(+%(ati%& $%"s &%t %&stitut" a sa!" %*+(%+"(ti"s T'" t(a&sati%& )"("!/ i%!#"s a 'a&g" i& t'"&atu(" %* %&"(s'i+ %* +(%+"(t/ *(%) u&i&%(+%(at"$ t%i&%(+%(at"$ "&tit/ O&"(s'i+ %#"( t'" +(%+"(ti"s (")ai&st'" sa)" (

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AL;E ADDED TAX

• Selle" of "eal &"o&e"ties is s)2(et to AT – S"!!"( ""ut"s a $%u)"&t %* sa!" BDAS %( CTS – R"a! +(%+"(t/ is !%at"$ i& t'" P'i! – S"!!"( is "&gag"$ i& ("a! "stat" usi&"ss "it'"( as $"a!"(,

$"#"!%+"( %( !"ss%( – R"a! +(%+"(t/ is '"!$ +(i)a(i!/ *%( sa!" %( *%( !"as" i& t'"

%($i&a(/ %u(s" %* t(a$" %( usi&"ss – Sa!" is &%t "")+t *(%) VAT

• H%"#"(, R"# R"gs N% ?-200 BF" 200 +(%#i$"s t'at 9i* t'"("a! +(%+"(t/ s%!$ is us"$ i& 'is t(a$" %( usi&"ss, sai$ t(a&sati%&is su"t t% VAT, "i&g i&i$"&ta! t% t'" )ai& usi&"ss: %* t'"

ta+a/"(, '% is a VAT-("gist"("$ ta+a/"( "&gag"$ i& %t'"( t/+"s%* usi&"ss•  T'" "'a&g" %* g%%$s %( +(%+"(ti"s, i&!u$i&g t'" ("a! "stat"

+(%+"(ti"s us"$ i& usi&"ss %( '"!$ *%( sa!" %( !"as" / t'"t(a&s*"(%(, *%( s'a("s %* st%7s, '"t'"( ("su!ti&g i& %(+%(at"%&t(%! %( &%t, is su"t t% VAT ("" 10%2011, 9ul3 1, 2011)

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AL;E ADDED TAX

• Install#ent sales of "eal &"o&e"ty – Ru!"s %& i&sta!!)"&t sa!"s %* ("a! +(%+"(t/ i& i&%)" ta

!a a(" a$%+t"$ *%( VAT +u(+%s"s i& VAT ("gu!ati%&s• Sa!"s it' i&itia! +a/)"&ts %* 2 %( !"ss %* GSP i& t'" /"a( %*

sa!" s'a!! " ("+%(t"$ %&!/ i& +"(i%$ %* sa!"s C%!!"ti%&s i& t'"

s"%&$ a&$ su""$i&g /"a(s s'a!! " ("+%(t"$ i& t'" /"a( %*%!!"ti%& *%( VAT +u(+%s"s

• H%"#"(, i* i&itia! +a/)"&ts """$ 2 %* g(%ss s"!!i&g +(i", t'"sa!" is t("at"$ as a as' sa!"6 '"&", t'" "&ti(" s"!!i&g +(i" issu"t t% VAT i& t'" +"(i%$ %* sa!" C%!!"ti%&s i& t'" su""$i&g/"a(s a(" &% !%&g"( su"t t% VAT

• 9Initial &ay#ents: )"a&s t'" $%& +a/)"&t +!us a!! )%&t'!/a)%(ti>ati%&s i& t'" /"a( %* sa!"

 – H%"#"(, t'" (u!"s %& i&sta!!)"&t sa!"s %* a++!ia&"s i&i&%)" ta a(" not a$%+t"$ *%( VAT +u(+%s"s

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AL;E ADDED TAX

•  Ta as" *%( sa!" %* g%%$s %( +(%+"(t/ is 9'"oss Selling-"ie: BGSP - t'" t%ta! a)%u&t %* )%&"/ %( its "ui#a!"&t,'i' t'" +u('as"( +a/s %( is %!igat"$ t% +a/ t% t'" s"!!"(i& %&si$"(ati%& %* t'" sa!", a(t"( %( "'a&g" %* t'"g%%$s %( +(%+"(ti"s, "!u$i&g t'" VAT .* t'" GSP isu&("as%&a!/ !%"( t'a& t'" atua! )a(7"t #a!u", t'" C.R is

aut'%(i>"$ t% $"t"()i&" a&$ +("s(i" t'" atua! )a(7"t#a!u" t% " us"$ as ta as" T'" GSP is %&si$"("$)n"easona2ly lowe" t!an t!e at)al #a"ket $al)e, i* itis !%"( / )%(" t'a& 30 %* t'" atua! )a(7"t #a!u" %* t'"sa)" g%%$s %* t'" sa)" ua&tit/ a&$ ua!it/ s%!$ i& t'"i))"$iat" !%a!it/ %& %( &"a("st t'" $at" %* sa!"

• As a (u!", %ut+ut ta a(u"s %& sa!" %* g%%$s %( +(%+"(ti"s(oter tan a real propert3 sold /it initial pa3ments o2$? or less) at t'" ti)" %* sa!", '"& t'" VAT sa!"s i%i"is issu"$, a!t'%ug' &%&" %( %&!/ a +a(t %* t'" g(%ss s"!!i&g+(i" is +ai$ / t'" u/"( at t'" ti)" %* sa!" B"g, sa!" %*a++!ia&"s %& i&sta!!)"&ts

• Eis" ta, i* a&/, s'a!! *%() +a(t %* GSP

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AL;E ADDED TAX

• Sales diso)nts $"t"()i&"$ a&$ g(a&t"$ at t'" ti)" %* sa!",'i' a(" "+("ss!/ i&$iat"$ i& t'" sa!"s i%i" $% &%t *%() +a(t%* t'" ta as" G(a&t %* $is%u&t )ust &%t $"+"&$ u+%& t'"'a++"&i&g %* a *utu(" "#"&t %( t'" *u!!!)"&t %* "(tai& %&$iti%&

 T'"/ )ust " ("%($"$ i& t'" %%7s %* a%u&ts %* t'" s"!!"(• Senio" itiens a(" "&tit!"$ t% 20 sa!"s $is%u&ts a&$ t%

"")+ti%& *(%) VAT u&$"( t'" E+a&$"$ S"&i%( Citi>"&s La

• 'S- s!all se&a"ately indiate t!e AT o#&onent• '"& VAT is &%t s"+a(at"!/ i&$iat"$ i& t'" i%i" %( (""i+t, t%

$"t"()i&" G(%ss S"!!i&g P(i" %( G(%ss R""i+ts B100, $i#i$" T%ta! .%i" A)%u&t B112 / 112 .* T%ta! .%i" A)%u&ti&!u$"s ET, $"t"()i&" (st t'" G(%ss S"!!i&g P(i", a&$ t'"&

a++!/ t'" VAT (at" %& GSP

• Tax "ates – 12 "gi&&i&g F" 1, 200 BRA @33 – 0 VAT %& >"(%-(at"$ sa!"s Baut%)ati %( "I"ti#"!/ >"(%-(at"$

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AL;E ADDED TAX

• Sales of goods s)2(et to / AT – Atua! "+%(t sa!"s – D"")"$ "+%(t sa!"s

• .&t"(&a! %( %&st(uti#" "+%(t sa!"s u&$"( 5O. !a BEO22 a&$ s+"ia! !as BRA @1 a&$ RA 22 a("

aut%)atia!!/ >"(%-(at"$ – E%>%&"s a&$ *(""+%(t >%&"s a(" $"")"$ *%("ig&

t"((it%(i"s / ti%& %* !a (C!" v. Sea'ate Tecnolo'3 (200$)7C!" v. Tosiba !normation 8quipment (200$)

 – F%( as !%&g as t'" g%%$s (")ai& it'i& t'" >%&",%&su)"$ %( $"st(%/"$ t'"(", t'"/ i!! " $ut/-*(""a&$ ta-*("" (Coconut :il "e&ners *sso v. Torres (200$)

•

EI"ti#"!/ >"(%-(at"$ sa!"s Bsa!"s t% AD5, ")assi"s, "t&""$ a++(%#a! *(%) 5.R "*%(" sa!"6 %t'"(is", sa!" is"")+t

 – Sa!"s %* g%!$ t% 5SP, ut sa!"s %* si!#"( is su"t t% 12 VAT – F%("ig& u(("&/ $"&%)i&at"$ sa!"s Ba!i7a/a& +(%g(a) – Sa!"s %* g%%$s, su++!i"s, "ui+)"&t a&$ *u"! t% +"(s%&s

"&gag"$ i& i&t"(&ati%&a! s'i++i&g %( i&t"(&ati%&a! ai( t(a&s+%(t

%+"(ati%&s

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AL;E ADDED TAX

• JER68RATED SALE

•  T(a&sati%& is %)+!"t"!/*("" %* VAT6 (at" 'a(g"$/ s"!!"( is >"(%

• VAT-("gist"("$ s"!!"( a&

("!ai) i&+ut ta"s +ass"$%& t% it / s"!!"(s %* g%%$s%( s"(#i"s *(%) 5.R i&*%() %* ("*u&$ %( ta ("$it

• Q"(%-(at"$ sa!"s a("taa!" sa!"s *%( +u(+%s"s%* ("gist(ati%& as VATta+a/"( t% $"t"()i&"t'("s'%!$

• EXEM-T SALE• E")+ti%& (")%#"s

t'" VAT at t'" "")+tstag"

• E")+t ta+a/"(a&&%t ("!ai) VAT+ass"$ %& t% it / VAT-("gist"("$ s"!!"(s

• E")+t sa!"s a(" &%ttaa!" sa!"s *%( VAT+u(+%s"s

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AL;E ADDED TAX

• -ERS6NS SELLIN' TAXA9LE SERICES – Const")tion and se"$ie ont"ato"s

• H"a!t' ai&t"&a&" O(ga&i>ati%& BHO ats !i7" a&i&$"+"&$"&t %&t(at%( ta"$ %& "&ti(" g(%ss (""i+ts

• S"u(it/ ag"&/ Bta"$ %&!/ %& its ag"&/ *"", +(%#i$"$t'at t'"(" is +(%+"( s"g("gati%& "t""& t'" *"" a&$ sa!a(/%* s"u(it/ gua($s6 ")+!%/)"&t a&$ a&it%(ia! ag"&i"sBta"$ %& its "&ti(" g(%ss (""i+ts

•  T(a#"! ag"&/; H%t"! (%%) 'a(g"s *%( *%("ig& t%u(ists a&$t(a#"! ag"&i"s a(" &%t +a(t %* its g(%ss (""i+ts

 – 9"oke"s• R"i)u(s")"&t %* "+"&s"s a(" &%t su"t t% VAT i*

(""i+ts %( i%i"s a(" issu"$ i& t'" &a)" %* +(i&i+a! – Lesso"s of &"o&e"ty, "eal o" &e"sonal

• R%/a!ti"s a(" &%t su"t t% VAT i* +ai$ / a PEQA- %( S5A-("gist"("$ "&t"(+(is" t% a &%&-("si$"&t *%("ig& %(+%(ati%&

 – 4a"e!o)sing se"$ies

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AL;E ADDED TAX

• -ERS6NS SELLIN' TAXA9LE SERICES – Lesso"s o" dist"i2)to"s of ine#atog"a&!i l#s

• %#i" '%us"s a&$ t'"at"(s a(" "")+t *(%) VAT6 t'"/ a("su"t t% !%a! a)us")"&t ta a&$ as"$ %& +ast !as &%tsu"t t% VAT, 'i' ta s'a!! " +ai$ / !%a! +a/%(

 – -e"sons engaged in #illing, &"oessing, #an)fat)"ing

o" "e&aking goods fo" ot!e"s• i!!"( %* +a!a/ i&t% (i", %(& i&t% g(its, a&$ suga( a&" i&t%

(a suga( is "")+t *(%) VAT• i!!"( %* ("&"$ suga( %( assa#a is su"t t% VAT

 – -"o&"ieto"s o" o&e"ato"s o" kee&e"s of !otels, #otels,"est!o)ses, &ension !o)ses, inns and "eso"ts

•

H%t"!-%+"(at%( %* !i)%usi&" s"(#i"s t% '%t"! gu"sts issu"t t% VAT Ba&$ &%t t% %))%& a((i"(4s ta "aus" itis &%t a %))%& a((i"(

•  T%!!i&g 'a(g"s %!!"t"$ / '%t"! *%( PLDT *%( %#"(s"asa!!s )a$" / '%t"! gu"sts a(" &%t +a(t %* taa!" (""i+ts%* '%t"!

 – -"o&"ieto"s o" o&e"ato"s of "esta)"ants and ot!e"

si#ila" esta2lis!#ents

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AL;E ADDED TAX

• -ERS6NS SELLIN' TAXA9LE SERICES – Deale"s in se)"ities

• S"u(iti"s %((%i&g a&$ !"&$i&g a)%&g $"a!"(s i& s"u(iti"s %#"("$ /a ast"( Ag("")"&t as "!! as u$iia! a&$ *%("!%su(" sa!"s %* s"u(iti"sa(" "")+t *(%) VAT

 – Lending in$esto"s Bi&!u$"s a +"(s%& '% !"&$s si ti)"s %( )%(" $u(i&gt'" /"a( at i&t"("st t% a&%t'"( H%"#"(, +a&s'%+s a(" &%t !"&$i&g

i"st%(s6 t'"/ a(" su"t t% GRT – T"ans&o"tation ont"ato"s on t!ei" t"ans&o"t of goods o" a"goes – Do#esti o##on a""ie"s 2y ai" and sea 2etween &oints in t!e

-!ili&&ines – Sales of elet"iity

• Sa!" %* +%"( t'(u ("&"a!" s%u("s %* "&"(g/ / g"&"(ati%&,t(a&s)issi%& a&$ $ist(iuti%& %)+a&i"s is >"(%-(at"$

 – Se"$ies of f"an!ise g"antees, i&!u$i&g o&e"ato"s of toll !ig!ways

(

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AL;E ADDED TAX

• 9'"oss "eei&ts: )"a&s t'" t%ta! a)%u&t %* )%&"/ %(its "ui#a!"&t, ("+("s"&ti&g t'" %&t(at +(i",%)+"&sati%&, s"(#i" *"", ("&ta! %( (%/a!t/, i&!u$i&g t'"a)%u&t 'a(g"$ *%( )at"(ia!s su++!i"$ it' t'" s"(#i"sa&$ $"+%sits a&$ a$#a&" +a/)"&ts atua!!/ %(%&st(uti#"!/ (""i#"$ $u(i&g t'" taa!" ua(t"( *%( t'"s"(#i"s +"(*%()"$ %( t% " +"(*%()"$ *%( a&%t'"( +"(s%&,"!u$i&g t'" VAT, ""+t t'%s" a)%u&ts "a()a(7"$ *%(+a/)"&t t% u&("!at"$ t'i($ +a(t/ %( (""i#"$ as("i)u(s")"&t *%( a$#a&" +a/)"&t %& "'a!* %* a&%t'"(,'i' $% &%t ("$%u&$ t% t'" "&"t %* t'" +a/%(

• F%( sa!" %* s"(#i"s, t'" test is &%t '"t'"( s"(#i"s 'a#"""& +"(*%()"$ %( &%t, ut '"t'"( a)%u&t %*%)+"&sati%& %( *"" is (""i#"$, atua!!/ %( %&st(uti#"!/

 T'" (u!" is; N6 RECEI-T 6F -A?MENT, N6 ATLIA9ILIT?%

• A %&t(at%( t'at ag(""s t% +(%#i$" t'" )at"(ia!s a&$ !a%(

*%( a %&st(uti%& +(%"t is a s"!!"( %* s"(#i"s *%( t'""&ti(" a)%u&t %* %&si$"(ati%&

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AL;E ADDED TAX

• JER68RATED SALES 6F SERICES – P(%"ssi&g, )a&u*atu(i&g %( ("+a7i&g g%%$s *%( %t'"(

+"(s%&s $%i&g usi&"ss %utsi$" t'" P'i!, 'i' g%%$s a("sus"u"&t!/ "+%(t"$, '"(" t'" s"(#i"s a(" +ai$ *%(i& a"+ta!" *%("ig& u(("&/ a&$ a%u&t"$ *%( i&a%($a&" it' 5SP (u!"s a&$ ("gu!ati%&s

 – S"(#i"s %t'"( t'a& +(%"ssi&g, )a&u*atu(i&g %(("+a7i&g ("&$"("$ t% a +"(s%& "&gag"$ i& usi&"ss%&$ut"$ %utsi$" t'" P'i! %( t% a &%&-("si$"&t +"(s%&&%t "&gag"$ i& usi&"ss '% is %utsi$" t'" P'i! '"&t'" s"(#i"s a(" +"(*%()"$, t'" %&si$"(ati%& *%( 'i'a(" +ai$ *%( i& a"+ta!" *%("ig& u(("&/ a&$

a%u&t"$ *%( i& a%($a&" it' 5SP (u!"s a&$("gu!ati%&s (C!" v. BSC ;indanao, " 1$520$, 9an 22, 200=) 

 – S"(#i"s ("&$"("$ t% +"(s%&s %( "&titi"s '%s""")+ti%& u&$"( s+"ia! !as %( i&t"(&ati%&a!ag("")"&ts t% 'i' t'" P'i! is a sig&at%(/ "I"ti#"!/su"ts t'" sa!" %* s"(#i"s t% 0 (at"

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AL;E ADDED TAX

• JER68RATED SALES 6F SERICES – S"(#i"s ("&$"("$ t% +"(s%&s "&gag"$ i& i&t"(&ati%&a!

s'i++i&g %( i&t"(&ati%&a! ai( t(a&s+%(t %+"(ati%&s,i&!u$i&g !"as"s %* +(%+"(t/ *%( us" t'"("%* 

• S"(#i"s ("&$"("$ / !%a! s'i++i&g ag"&ts a&$ /

!%a! s'i++i&g !i&"s t% i&t"(&ati%&a! a((i"(s a(" e"o8"ated %&!/ i* t'"/ +"(tai& t% o)t2o)nd t"i&s6 %&i&%u&$ t(i+s, t'"/ a(" su"t t% 12 VAT

• S"(#i"s +(%#i$"$ / '%t"!s t% t'"i( !i"&ts "&gag"$i& i&t"(&ati%&a! ai( t(a&s+%(t %+"(ati%&s +"(tai&i&g t%

(%%) a%))%$ati%&s a&$ *%%$ a&$ "#"(ag"s"(#i"s a(" su"t t% su"t t% 12 VAT T% ua!i*/*%( >"(%-(ati&g, t'" s"(#i" )ust +"(tai& t% %( )ust" att(iuta!" t% t(a&s+%(t %* g%%$s a&$ +ass"&g"(s*(%) a +%(t i& t'" P'i!i++i&"s $i("t!/ t% a *%("ig&+%(t, it'%ut $%7i&g %( st%++i&g at a&/ +%(t i& t'"

P'i!i++i&"s (";C 51%2011, *u' 4, 20117 "" 4%200=).

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AL;E ADDED TAX

 –  T'" $%7i&g 'a(g"s Btuggag" "&t(a&" %( tuggag" $"+a(tu(" %)+ut"$%& US $%!!a(s a&$ %"(t"$ i& its "ui#a!"&t P'i! +"s%s ("&$"("$ t%*%("ig& #"ss"!s is >"(%-(at"$, "#"& i* t'" %)+a&/ $i$ &%t i!! $i("t!/ t'"*%("ig& +(i&i+a! ut i!!"$ %&!/ its !%a! 'usa&$i&g ag"&t, a&$ t'at t'"+a/)"&ts "(" &%t (""i#"$ i& *%("ig& u(("&/ (Pil Sinter Corp v. C!", CT*444=, 9an 26, 1>>$)

• S"(#i"s +"(*%()"$ / su%&t(at%(s a&$%( %&t(at%(s i&+(%"ssi&g, %"(ti&g %( )a&u*atu(i&g g%%$s *%( a& "&t"(+(is"'%s" "+%(t sa!"s """$s 0 %* t%ta! a&&ua! +(%$uti%&

•  T(a&s+%(t %* +ass"&g"(s a&$ a(g% / $%)"sti ai( %( s"aa((i"(s *(%) t'" P'i! t% a *%("ig& %u&t(/

• Sa!" %* +%"( %( *u"! g"&"(at"$ t'(u ("&"a!" s%u("s %*

"&"(g/ Bi%)ass, s%!a(, i&$, '/$(%+%"(, g"%t'"()a! a&$%t'"( ")"(gi&g s%u("s – Sa!" %* s"(#i" / ROH is &%t >"(%-(at"$6 it is a& a$)i&ist(ati#" a() %*

t'" '"a$ %"6 '"&", it is %&si$"("$ as %&" a&$ t'" sa)" "&tit/ *%( ta+u(+%s" (!nstitutional Sareolder Services Pil ":+D v. C!", CT* =662, 9une 5, 2010)

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AL;E ADDED TAX

• CIR $% 94SC Mindanao, In%, 'R1+./+, Kan .., .//

•  Ta C%$" &%t %&!/ ("ui("s t'at t'" s"(#i"s %t'"( t'a& 9+(%"ssi&g,)a&u*a-tu(i&g %( ("+a7i&g %* g%%$s: a&$ t'at +a/)"&t *%( su' s"(#i"s" i& a"+ta!" *%("ig& u(("&/ a%u&t"$ *%( i& a%($a&" it' 5SP(u!"s A&%t'"( "ss"&tia! %&$iti%& *%( ua!iati%& t% >"(%-(ati&g u&$"( S"102BB2 is t'at t'" ("i+i"&t %* su' s"(#i"s is $%i&g usi&"ss %utsi$"

t'" P'i!• 'i!" t'is ("ui(")"&t is &%t "+("ss!/ stat"$ i& t'" 2&$ +a(ag(a+' %* S"

102B, t'is is !"a(!/ +(%#i$"$ i& t'" 1st +a(ag(a+' %* S" 102B '"(" t'"!ist"$ s"(#i"s )ust " 9*%( %t'"( +"(s%&s $%i&g usi&"ss %utsi$" t'" P'i!:

•  T'" a%#" +'(as" &%t %&!/ ("*"(s t% s"(#i"s "&u)"(at"$ i& t'" (st+a(ag(a+', ut a!s% +"(tai&s t% t'" g"&"(a! t"() 9s"(#i"s: a++"a(i&g i&t'" s"%&$ +a(ag(a+'

• Ot'"(is", t'%s" su"t t% t'" ("gu!a( VAT u&$"( S" 102Ba a& a#%i$

+a/i&g t'" VAT / si)+!/ sti+u!ati&g +a/)"&t i& *%("ig& u(("&/ i&a($!/(")itt"$ / t'" ("i+i"&t %* s"(#i"s T% i&t"(+("t S" 102BB2 s'a!!a++!/ t% a +a/"(-("i+i"&t %* s"(#i"s $%i&g usi&"ss i& t'" P'i! is t% )a7"t'" +a/)"&t %* ("gu!a( VAT $"+"&$"&t %& t'" g"&"(%sit/ %* t'" ta+a/"(

• A ta is a )a&$at%(/ "ati%&, &%t a #%!u&ta(/ %&t(iuti%&

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AL;E ADDED TAX

• Sig&ia&t!/, t'" a)"&$"$ S"ti%& 108B J+("#i%us!/ S"102BK %* t'" +("s"&t Ta C%$" !a(i"s t'is !"gis!ati#"i&t"&t F%( >"(%-(ati&g %* s"(#i"s, it )ust " ("&$"("$ t% a+"(s%& "&gag"$ i& usi&"ss %&$ut"$ %utsi$" t'" P'i!

•  T'" +a/"(-("i+i"&t %* ("s+%&$"&t4s s"(#i"s is t'"C%&s%(tiu) 'i' is a %i&t #"&tu(" $%i&g usi&"ss i& t'"

P'i! 'i!" t'" C%&s%(tiu)4s +(i&i+a! )")"(s a(" &%&-("si$"&t *%("ig& %(+s, t'" C%&s%(tiu) its"!* is $%i&gusi&"ss i& t'" P'i! T'is is s'%& i& 5.R Ru!i&g 23-@,'i' stat"s t'at t'" %&t(at "t""& C%&s%(tiu) a&$NPC is *%( a 1-/"a( t"() C%&si$"(i&g t'" !"&gt' %* ti)",t'" C%&s%(tiu)4s %+"(ati%& a&$ )ai&t"&a&" %* NPC4s

+%"( a(g"s a&&%t " !assi"$ as a si&g!" %( is%!at"$t(a&sati%&•  T'is 5SC as" is $iI"("&t *(%) CIR v. American

E!ress International" Inc. (#hil $ranch), "aus" i&t'" !att"( as", t'" ("i+i"&t %* s"(#i"s is AE.. BH 5(a&'$%i&g %utsi$" t'" P'i!

• C.R4s !i&g %* its A&s"( "*%(" t'" CTA i& t'" 5SC as",'a!!"&gi&g !ai) *%( ("*u&$ "I"ti#"!/ s"(#"s as a

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49/99

AL;E ADDED TAX

• AT8EXEM-T TRANSACTI6NS – A Sa!" %( i)+%(tati%& %* ag"i)lt)"al and #a"ine *%%$ +(%$uts i&

t'"i( %(igi&a! stat"6 !i#"st%7 a&$ +%u!t(/ g"&"(a!!/ +(%$ui&g *%%$*%( 'u)a& %&su)+ti%&6 a&$ (""$i&g st%7

• 96"iginal state: = si)+!" +(%"ss"s %* +("+a(ati%& %(+("s"(#ati%& *%( t'" )a(7"t P(%"ss is &% !%&g"( si)+!", i* iti%!#"s +'/sia! %( '")ia! +(%"ss t'at a!t"(s t'" "t"(i%(

t"tu(" %( *%() %( i&&"( susta&" %* t'" +(%$ut as t% +("+a(" it*%( a s+"ia! us"

• Ri", %(& g(its, (a suga(, )%!ass"s, %($i&a(/ sa!t a&$ %+(a a("+(%$uts i& t'"i( %(igi&a! stat"

 – 5 Sa!" %( i)+%(tati%& %* *"(ti!i>"(s6 s""$s, s""$!i&gs a&$ &g"(!i&gs6s', +(a&, !i#"st%7 a&$ +%u!t(/ *""$s B""+t s+"ia!t/ *""$s *%((a" '%(s"s, g'ti&g %7s a&$ %t'"( +"ts

 –C .)+%(tati%& %* +"(s%&a! a&$ '%us"'%!$ "I"ts "!%&gi&g t%("si$"&ts %* t'" P'i! ("tu(&i&g *(%) a(%a$ a&$ &%&-("si$"&t iti>"&s%)i&g t% ("s"tt!" i& t'" P'i!

 – D .)+%(tati%& %* +(%*"ssi%&a! i&st(u)"&ts a&$ i)+!")"&ts, a&$+"(s%&a! "I"ts B""+t #"'i!", #"ss"!, ai((a*t, )a'i&"(/ *%( us"i& )a&u*atu(" "!%&gi&g t% +"(s%&s %)i&g t% s"tt!" i& t'" P'i!

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AL;E ADDED TAX

• AT EXEM-T TRANSACTI6NS – E Se"$ies s)2(et to &e"entage tax )nde" Title , su'

as 3 +"("&tag" ta, %))%& a((i"(4s ta %& !a&$t(a&s+%(tati%& a&$ i&t"(&ati%&a! a((i"(s, g(%ss (""i+ts ta %&a&7s a&$ &a&" %)+a&i"s, +(")iu) ta %& !i*" i&su(a&"%)+a&i"s, *(a&'is" ta %& gas a&$ at"( g(a&t""s, "t

 –

F S"(#i"s / ag(iu!tu(a! %&t(at g(%"(s a&$ )i!!i&g *%( %t'"(s%* +a!a/ i&t% (i", %(& i&t% g(its, a&$ suga( a&" i&t% (a suga(• C%&t(at g(%i&g i&!u$"s +%u!t(/, !i#"st%7 a&$ ag(iu!tu(a!

a&$ )a(i&" *%%$ +(%$uts – G Medial, dental, !os&ital and $ete"ina"y se"$ies,

exe&t t!ose "ende"ed 2y &"ofessionals• Sa!"s %* )"$ii&"s / '%s+ita!s t% i&-+ati"&ts a(" "")+t *(%)

VAT as )"$ia!'%s+ita! s"(#i"s – H E$uati%&a! s"(#i"s ("&$"("$ / +(i#at" "$uati%&a!

i&stituti%&s a("$it"$ / D"+E$, CHED, TESDA (!normatics *laban' Center v. C!", CT* 8 $>5, Aeb 2#, 2011), a&$ t'%s"("&$"("$ / g%#"(&)"&t "$uati%&a! i&stituti%&s

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AL;E ADDED TAX

• AT8EXEM-T TRANSACTI6NS – . S"(#i"s ("&$"("$ / i&$i#i$ua!s +u(sua&t t% a& ")+!%/"(-

")+!%/"" ("!ati%&s'i+ –  

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AL;E ADDED TAX

• AT8EXEM-T TRANSACTI6NS – O E+%(t sa!"s / +"(s%&s '% a(" not VAT-("gist"("$ – P Sale of "eal &"o&e"ty &%t +(i)a(i!/ '"!$ *%( sa!" t% ust%)"(s %( *%(

!"as" i& t'" %($i&a(/ %u(s" %* t(a$" %( usi&"ss, %( ("a! +(%+"(t/ *%( !%-%st a&$ s%ia!i>"$ '%usi&g, ("si$"&tia! !%t #a!u"$ at P1 B-1,B1B,+//2eginning ./1. %( "!%, '%us" a&$ !%t a&$ %t'"( ("si$"&tia! $"!!i&gs#a!u"$ at P2 B-,1BB,.// 2eginning ./1. JRR 1-2011, Ot 2,

2011K %( "!%•  T'is t'("s'%!$ %& S" 10@BP is %& a &e" t"ansation 2asis

 – Lease of a "esidential )nit wit! a #ont!ly "ental notexeeding -1/,/// BP12,800 "gi&&i&g 2012;

• L"as" %* %))"(ia! ui!$i&gs a(" su"t t% VAT, ("ga($!"ss %* ("&ta!+"( )%&t' %( u&it, +(%#i$"$ t'("s'%!$ %* P1 BP1,@1@,00 "gi&&i&g2012 is """$"$, %( t'" !"ss%( ("gist"("$ as a VAT +"(s%&

•  T'is t'("s'%!$ %& S" 10@B is %& a &e" "esidential )nit &e" #ont!

2asis – R Sa!", i)+%(tati%&, +(i&ti&g %( +u!iati%& %* %%7s B!a"d 2o)nd a&$

a&/ &"s+a+"( %( )aga>i&" 'i' a++"a( at ("gu!a( i&t"(#a!s it' "$+(i"s a&$ is &%t $"#%t"$ +(i&i+a!!/ t% +u!iati%& %* +ai$ a$#"(tis")"&ts

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AL;E ADDED TAX

• AT EXEM-T TRANSACTI6NS – S Sa!", i)+%(tati%& %( !"as" %* +ass"&g"( %( a(g%

#"ss"!s a&$ ai((a*ts a&$ t'"i( +a(ts *%( $%)"sti %(i&t"(&ati%&a! t(a&s+%(t

 –  T .)+%(tati%& %* *u"!, g%%$s a&$ su++!i"s / +"(s%&s

"&gag"$ i& i&t"(&ati%&a! s'i++i&g %( ai( t(a&s+%(t%+"(ati%&s – U S"(#i"s %* a&7s, &%&-a&7 &a&ia! i&stituti%&s

+"(*%()i&g uasi-a&7i&g *u&ti%&s, a&$ %t'"( &a&ia!i&t"()"$ia(i"s

 – V Sale o" lease of goods o" &"o&e"ty o" t!e&e"fo"#ane of se"$ies ot!e" t!an t"ansations#entioned a2o$e, t'" g(%ss sa!"s %( (""i+ts Bfo" t!e&"eeding 1. #ont!s $% &%t """$ P1 B-1,B1B,+// 2eginning ./1.

• .* sa!" %* g%%$s +"(tai&s t% ag(iu!tu(a! %( )a(i&" *%%$+(%$uts i& t'"i( %(igi&a! stat" %( sa!" %* %%7s, %(sa!" %* s"(#i" ("!at"s t% ("&ta! %* ("si$"&tia! u&it &%t

"""$i&g P12,800, t(a&sati%& is "")+t "#"& i*(%ss sa!"s %( (""i ts """$ P1 -1 B1B +//

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AT 6R -T

  AT

• .* !"ss%( (""i#"s ("&ta!i&%)" *%( ("si$"&tia!'%us"s +"( u&it +"( )%&t' %*

P12,800 %( !"ss, '" is"")+t *(%) VAT "#"& i* 'isg(%ss a&&ua! ("&ta! is )%("%( !"ss t'a& P1 )i!!i%&BP1,@1@,00 "gi&&i&g

2012• Si&" t'" ("as%& *%( VAT

"")+ti%& is S" 10@B, '"is a!s% "")+t *(%) 3 PT

-ERCENTA'ETAX

• R"gist"("$ as a &%&-VAT+"(s%& and t'" ("as%& *%('is "")+ti%& *(%) VAT is

t'at 'is g(%ss sa!"s %((""i+ts *%( t'" +(""$i&g 12)%&t's $% &%t """$ P1)i!!i%& BP1,@1@,00"gi&&i&g 2012

• 3 OPT a++!i"s t% !"ss%(s %*("si$"&tia! u&its %#"(P12,800 +"( )%&t' +"( u&ita&$ %* %))"(ia!+(%+"(ti"s

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AT 6R -T

  AT

• .* t'" !"ss%( 'as %))"(ia!sta!!s *%( !"as" a&$ t'"a)%u&t %* g(%ss ("&ta! *%(

t'" /"a( is P1 BP1,@1@,00 "gi&&i&g 2012%( !"ss, '" is Ba "")+t*(%) VAT i* '" $i$ &%t("gist"( as a VAT +"(s%&, %(B su"t t% VAT i* '"("gist"("$ as a VAT +"(s%&,%( '" issu"$ a VAT (""i+t*%( t'" ("&ta! i&%)" t% t'"!"ss""

  -ERCENTA'ETAX• .& Ba, '" is !ia!" t%t'" 3 +"("&tag" ta"aus" '" $"(i#"s("&ta! i&%)" a&$ t'"

("as%& *%( 'is VAT"")+ti%& is t'at '"$i$ &%t """$ t'"a&&ua! t'("s'%!$ %*

P1 )i!!i%&BP1,@1@,00 "gi&&i&g2012

• .& B, '" is !ia!" t%

VAT

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RMC H8./1/

• VA% on o!erator o& toll'ays.88  T%!!a/ *""s a(" &%tta"s T'"/ a(" &%t ass"ss"$ a&$ %!!"t"$ / t'" 5.R a&$$% &%t g% t% t'" g"&"(a! %I"(s %* g%#"(&)"&t A ta isi)+%s"$ u&$"( t'" tai&g +%"( %* t'" g%#"(&)"&t+(i&i+a!!/ *%( t'" +u(+%s" %* (aisi&g ("#"&u"s t% *u&$

+u!i "+"&$itu("s T%!! *""s, %& t'" %t'"( 'a&$, a("%!!"t"$ / +(i#at" t%!!a/ %+"(at%(s as ("i)u(s")"&t*%( t'" %sts a&$ "+"&s"s i&u(("$ i& t'" %&st(uti%&,)ai&t"&a&" a&$ %+"(ati%& %* t'" t%!!a/s, as "!! as t%assu(" t'") a ("as%&a!" )a(gi& %* i&%)" Ta"s )a/ "

i)+%s"$ / t'" g%#"(&)"&t u&$"( its s%#"("ig& aut'%(it/,'i!" t%!! *""s )a/ " $")a&$"$ / "it'"( t'" g%#"(&)"&t%( +(i#at" +"(s%&s as a& att(iut" %* %&"(s'i+A%($i&g!/, VAT %& t%!! *""s is &%t a ta %& ta

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RMC H8./1/

•  T'" C.R $i$ &%t usu(+ !"gis!ati#" +("(%gati#" %( "+a&$ t'" VAT!a4s %#"(ag" '"& s'" s%ug't t% i)+%s" VAT %& t%!!a/%+"(ati%&s S"ti%& 108BA %* t'" C%$" !"a(!/ stat"s t'at s"(#i"s%* a!! %t'"( *(a&'is" g(a&t""s a(" su"t t% VAT, ""+t as )a/" +(%#i$"$ u&$"( S"ti%& 11@ %* t'" C%$" T%!!a/ %+"(at%(s a("

&%t a)%&g t'" *(a&'is" g(a&t""s su"t t% *(a&'is" ta u&$"(t'" !att"( +(%#isi%& N"it'"( a(" t'"i( s"(#i"s a)%&g t'" VAT-"")+t t(a&sati%&s u&$"( S"ti%& 10@ %* t'" C%$"

• .* t'" !"gis!ati#" i&t"&t as t% "")+t t%!!a/ %+"(ati%&s *(%)VAT, as +"titi%&"(s s% st(%&g!/ a!!"g", t'"& it %u!$ 'a#" ""& "!!*%( t'" !a t% !"a(!/ sa/ t% Ta "")+ti%&s )ust " usti"$ /

!"a( statut%(/ g(a&t a&$ as"$ %& !a&guag" i& t'" !a t%% +!ai&t% " )ista7"& 5ut as t'" !a is (itt"&, &% su' "")+ti%&%tai&s *%( t%!!a/ %+"(at%(s T'" C%u(t is t'us $ut/-%u&$ t%si)+!/ a++!/ t'" !a as it is *%u&$

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AL;E ADDED TAX

• Sa!" %* )"$ii&"s / t'" '%s+ita! +'a()a/ t% in8&atients is"")+t *(%) VAT, ut sa!" t% %ut-+ati"&ts is su"t t% 12 VAT(St. LuEeFs ;edical Center v. CT* and C!", 1>>#)

•  T%!!i&g *""s (""i#"$ / a '%t"! *%( PLDT is &%t +a(t %* its g(%ss(""i+ts

• Pa/)"&t %* VAT / t'" '%t"! %& *""s *%( +(%#i$i&g !i)%usi&"

s"(#i" t% its !i"&t is %(("t .t is &%t su"t t% t'" 3 %))%&a((i"(4s ta C!ai) *%( ta ("$it is $"&i"$ (;anila ;andarin +otelv. C!")

• G(%ss (""i+ts %* t'"at(" %&"( %( %+"(at%( *(%) sa!"s %* ti7"ts t%)%#i"g%"(s a(" "")+t *(%) VAT T'"at("s a&$ )%#i" '%us"s a("&%t i&!u$"$ i& t'" "&u)"(ati%& %* taa!" s"(#i"s i& t'" VAT !aOu( ta !as, +ast a&$ +("s"&t, $i$ &%t a$%+t )%(" s+"i t"()s

*%( 9sa!" %( "'a&g" %* s"(#i"s: t% i&!u$" s'%i&g %* !)s i&+u!i (C!" v. S; Prime +oldin's, " 1#5$0$, Aeb 26, 2010)• PAGCOR is "")+t *(%) VAT +u(sua&t t% its 'a(t"(, PD 18@

5"i&g a s+"ia! !a, PD 18@ +("#ai!s %#"( RA 1, a sus"u"&tg"&"(a! !a T% " #a!i$, ("+"a! %* s+"ia! !a s'%u!$ " "+("ss(C!" v. *cesite +otel Corp, " 14=2>$, Aeb 16, 200=)

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AL;E ADDED TAX

• CATE'6RIES 6F IN-;T TAXES

 – .&+ut ta ("$it %& i)+%(tati%&s %* g%%$s a&$u(("&t !%a! +u('as"s %* g%%$s, +(%+"(ti"sa&$ s"(#i"s•

.&+ut ta %& a+ita! g%%$s '"(" t%ta!auisiti%& %st *%( t'" )%&t' """$s P1 )ust " a)%(ti>"$ %#"( "(tai& +"(i%$

 – T(a&siti%&a! i&+ut ta ("$it –

P("su)+ti#" i&+ut ta ("$it – it''%!$i&g i&+ut ta ("$it %& sa!"s t%

g%#"(&)"&t – E"ss i&+ut ta ("$it

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AL;E ADDED TAX

• T"ansitional In&)t Tax *TIT0 – A +"(s%& '% "%)"s !ia!" t% VAT %( a&/ +"(s%& '% "!"ts t% "

a VAT-("gist"("$ +"(s%& s'a!!, su"t t% t'" !i&g %* a& ."&t%(/, "a!!%"$ i&+ut ta %& 'is "gi&&i&g i"&t%(/ %* g%%$s, )at"(ia!s a&$su++!i"s "ui#a!"&t t% 2 %* t'" #a!u" %* su' i"&t%(/ Bs'%i&gua&tit/, $"s(i+ti%&, a&$ a)%u&t %( t'" atua! VAT +ai$ %& su'g%%$s, )at"(ia!s a&$ su++!i"s, 'i'"#"( is 'ig'"(

 – G%%$s t'at a(" "")+t *(%) VAT, *%()i&g +a(t %* i"&t%(/, a(""!u$"$ Ta+a/"( is &%t a!!%"$ t% !ai) 2 T.T %& i"&t%(/ %*g%%$s it'%ut VAT %)+%&"&ts (";C 61%200$, :ct 2=, 200$)

 – Ca+ita! g%%$s $% &%t *%() +a(t %* i"&t%(/

 –

T"ansitional in&)t tax is allowed not only on landi#&"o$e#ents 2)t also on land itself  (C!" v. Aort oniacio )

 – 

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AL;E ADDED TAX

• -"es)#&ti$e In&)t Tax – P"(s%&s %( ()s "&gag"$ i& t'" +(%"ssi&g %*

sa"dines, #ake"el and #ilk , a&$ i&)a&u*atu(i&g "ened s)ga" and ookingoil, and &aked noodle82ased instant

#eals a(" "&tit!"$ t% +("su)+ti#" i&+ut ta"ui#a!"&t t% ? %* g(%ss #a!u" i& )%&"/ %*t'"i( +u('as"s %* +(i)a(/ ag(iu!tu(a!+(%$uts 'i' a(" us"$ as i&+uts t% t'"i(+(%$uti%& (Sec. 111, !"C)

 –

9-"oessing: )"a&s +ast"u(i>ati%&, a&&i&ga&$ ati#iti"s 'i', t'(%ug' +'/sia! %('")ia! +(%"ss, a!t"( t'" "t"(i%( t"tu(" %(*%() %( i&&"( susta&" %* a +(%$ut i& su' a)a&&"( as t% +("+a(" it *%( s+"ia! us" t%'i' it %u!$ &%t 'a#" ""& +ut i& its %(igi&a!*%() %( %&$iti%&

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AL;E ADDED TAX

• In&)t tax on a&ital goods – 9Ca&ital goods: a(" "$ ass"ts it' "sti)at"$ us"*u! !i#"s %*

)%(" t'a& %&" /"a( us"$ i& t'" t(a$" %( usi&"ss %* t'" ta+a/"(a&$ a(" su"t t% $"+("iati%&

 – .* t'" agg("gat" auisiti%& %st B"!usi#" %* VAT i& a a!"&$a(

)%&t' """$s P1 )i!!i%&, a&$ Ba t'" "sti)at"$ us"*u! !i*" %* t'"ass"t is /"a(s %* )%(", t'" t%ta! i&+ut ta s'a!! " a)%(ti>"$ %#"( a+"(i%$ %* 0 )%&t's, %( B t'" "sti)at"$ us"*u! !i*" is !"ss t'a& /"a(s, t'" t%ta! i&+ut ta s'a!! " a)%(ti>"$ %#"( t'" "sti)at"$us"*u! !i*" %* t'" ass"t

 – .* t'" agg("gat" auisiti%& %st B"!usi#" %* VAT i& a a!"&$a(

)%&t' $%"s &%t """$ P1 )i!!i%&, t'" t%ta! i&+ut ta i!! " a!!%"$as ("$it agai&st t'" %ut+ut ta i& t'" )%&t' %* +u('as"

 – 9Const")tion in -"og"ess: ("*"(s t% %st %* %&st(uti%& %(7 t'atis &%t /"t %)+!"t"$ .t is &%t a a+ita! ass"t, ut is t("at"$ as a sa!"%* s"(#i"6 '"&", &%t %#"("$ / t'" (u!"s %& a+ita! g%%$s

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AL;E ADDED TAX

• S)2sidia"y "eo"ds fo" a&ital goods – A susi$ia(/ ("%($ i& !"$g"( *%() s'%u!$ " )ai&tai&"$ *%( t'"

auisiti%& %( i)+%(tati%& %* a+ita! g%%$s, su' as Ba t%ta!i&+ut ta6 B )%&t'!/ i&+ut ta !ai)"$ +"( VAT $"!a(ati%& %(("tu(&6 B +u('as" a)%u&t6 B$ $at" %* +u('as"6 B"

$"s(i+ti%& %* g%%$s BRR 1-2006 RC 2-200, Ot 18, 200 – F%( a+ita! g%%$s %#"("$ / 5OT s'")" B"g, .PP it' !i)it"$

$u(ati%&, t'" ""ss i&+ut ta s'a!! " a!!%"$ t% " a)%(ti>"$%#"( t'" !i*" %* t'" ass"t %( t'" (")ai&i&g !i*" %* t'" +(%"tag("")"&t, %( #" B /"a(s, 'i'"#"( is s'%(t"st BRC 1-200

•

R")"$/ %* !i&g !ai) *%( ("*u&$ %( ta ("$it %& u&us"$i&+ut ta a(isi&g *(%) +u('as" %* a+ita! g%%$s as$"!"t"$ i& RA @33

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AL;E ADDED TAX

• .&+ut ta i!! " $isa!!%"$ *%( ("*u&$ %( ta("$it, i*; – T'" i%i" is &%t u&$"( t'" &a)" %* t'" +"titi%&"(6

 – T'" i%i" %( (""i+t a&&%t " +("s"&t"$6

 – T'" i&+ut ta is "#i$"&"$ %&!/ / +(%#isi%&a!(""i+ts a&$ stat")"&t %* a%u&ts6

 – T'" i&+ut ta is su++%(t"$ / &%&-VAT i%i"s %((""i+ts6 %(

 – T'" i%i"s %( (""i+ts "(" +(i&t"$ "*%("

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AL;E ADDED TAX

• Alloation of in&)t taxes – .&+ut ta"s $i("t!/ att(iuta!" t% t(a&sati%&s su"t t%

VAT a(" ("$ita!" agai&st %ut+ut ta6

 – .&+ut ta"s att(iuta!" t% "")+t t(a&sati%&s "%)"+a(t %* t'" %st %( "+"&s"6

 – .&+ut ta"s t'at a(" &%t $i("t!/ att(iuta!" t% VATa!"a&$%( VAT-"")+t t(a&sati%&s s'a!! " a!!%at"$ as*%!!%s;• .&+ut ta att(iuta!" t% "")+t sa!"s E")+t sa!"sT%ta! sa!"s

• .&+ut ta att(iuta!" t% taa!" sa!"s Taa!" sa!"sT%ta! sa!"s

 – .&+ut ta"s att(iuta!" t% sa!"s t% g%#"(&)"&t a(" &%t("$ita!" agai&st %ut+ut ta *(%) sa!"s t% &%&-g%#t %"s

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AL;E ADDED TAX

• Alloation of in&)t taxes – .&+ut ta"s $i("t!/ att(iuta!" t% >"(%-(at"$ sa!"s

)a/ " !ai)"$ as ("*u&$ %( ta ("$it %( ("$it"$agai&st %ut+ut ta *%( t'" +"(i%$6

 –

.&+ut ta"s $i("t!/ att(iuta!" t% taa!" sa!"s B&%t>"(%-(at"$ a(" ("$ita!" agai&st %ut+ut ta *%( t'"+"(i%$6

 – .&+ut ta"s t'at a(" &%t $i("t!/ att(iuta!" t% >"(%-(at"$ a&$%( taa!" sa!"s s'a!! " a!!%at"$ as *%!!%s;

• .&+ut ta att(iuta!" t% >"(%-(at"$ sa!"s Q"(%-(at"$sa!"sT%ta! sa!"s

• .&+ut ta att(iuta!" t% taa!" sa!"s Q"(%-(at"$sa!"sT%ta! sa!"s

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AL;E ADDED TAX

•  Ta ("!i"*s %( (")"$i"s %* VAT ta+a/"(s %& t'"i(""ss i&+ut ta"s BE.T att(iuta!" t% >"(%-(at"$a&$ "I"ti#"!/ >"(%-(at"$ sa!"s – Ca((/ %#"( t'" ""ss i&+ut ta t% t'" &"t ua(t"(, u&ti! ""ss is

uti!i>"$ – Fi!" a !ai) *%( ("*u&$ – Fi!" a !ai) *%( ta ("$it, it'i& t% /"a(s a*t"( t'" !%s" %* taa!"

ua(t"( '"(" t'" sa!"s "(" )a$", BNOT *(%) t'" !i&g %* t'"ua(t"(!/ VAT ("tu(&

 – NOTE; Exess in&)t tax annot 2e lai#ed as 2ad ded)tionf"o# g"oss ino#e

• F%( &%&->"(%-(at"$ sa!"s, (")"$/ a#ai!a!" is %&!/ t%

a((/ %#"( E.T t% t'" &"t ua(t"(Bs, %( t% $iss%!#"t'" %(+%(ati%& %( "as" %+"(ati%& %* usi&"sssu"t t% VAT a&$ !" !ai) *%( ("*u&$ %( ta ("$itit'i& 2 /"a(s *(%) $at" %* $iss%!uti%& %( "ssati%&%* usi&"ss

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AL;E ADDED TAX

• Rekoning of two8yea" &"es"i&ti$e &e"iod – F(%) t'" $at" %* t'" !i&g %* t'" VAT ("tu(& a&$ +a/)"&t %*

t'" ta A*t"( a!!, VAT !iai!it/ %( ("*u&$ai!it/ a& %&!/ "$"t"()i&"$ u+%& t'" !i&g %* t'" ua(t"(!/ VAT ("tu(& (  AtlasConsolidated Mining ev Cor! v. CIR" *.R. +o. 1,11-," une /" 2--0 ).

 – F(%) t'" !%s" %* t'" taa!" ua(t"( '"& t'" ("!"#a&tsa!"s "(" )a$" +"(tai&i&g t% t'" i&+ut VAT, ("ga($!"ss %*'"t'"( sai$ ta as +ai$ %( &%t T'" +'(as" 9it'i& t%/"a(s: ("*"(s t% t'" a++!iati%& *%( ("*u&$ %( TCC !"$ it't'" C.R, a&$ &%t t% !i&g %* a++"a! t% CTA

 – S"s 20? a&$ 22@, N.RC a&&%t a++!/ i& a !ai) *%( ("*u&$%* ""ss i&+ut VAT %& >"(%-(at"$ sa!"s, %&si$"(i&g t'at it is&%t a as" %* "((%&"%us +a/)"&t %( i!!"ga! %!!"ti%& %* ta"s( CIR v. Mirant #agbilao Cor!" *.R. +o. 10212" e!t 12" 2--/ ).

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AL;E ADDED TAX

• Rekoning of two8yea" &"es"i&ti$e &e"iod – F(%) t'" !%s" %* t'" taa!" ua(t"( '"& t'" sa!"s "("

)a$" S"112BA 'i' stat"s 9it'i& t% /"a(s a++!/*%( t'" issua&" %* a ta ("$it "(tiat" %( ("*u&$: ("*"(st% a++!iati%&s *%( ta ("*u&$("$it !"$ it' t'" C.R a&$

&%t t% a++"a!s )a$" t% t'" CTA – S" 112BD, N.RC +(%#i$"s t'at C.R 'as 120 $a/s *(%)

$at" %* su)issi%& %* %)+!"t" $%u)"&ts it'i& 'i' t%g(a&t %( $"&/ t'" !ai) .& as" %* *u!! %( +a(tia! $"&ia!, %(t'" *ai!u(" %* C.R t% at %& t'" a++!iati%& it'i& t'"

("ui("$ +"(i%$, ta+a/"( )a/, it'i& 30 $a/s *(%) (""i+t%* t'" $"isi%& $"&/i&g t'" !ai) %( a*t"( t'" "+i(ati%& %*t'" 120 $a/ +"(i%$, a++"a! t'" $"isi%& %( t'" u&at"$!ai) it' t'" CTA

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AL;E ADDED TAX

 – .& t'is as", a$)i&ist(ati#" a&$ u$iia! !ai)s "(" si)u!ta&"%us!/!"$ %& S"+t 30, 200? Ta+a/"( s'%u!$ 'a#" ait"$ *%( t'"$"isi%& %* t'" C.R %( t'" !a+s" %* t'" 120-$a/ +"(i%$ Se11.*A0 a&&lies to ad#inist"ati$e lai#s Bi", it'i& 2 /"a(sa*t"( t'" !%s" %* t'" taa!" ua(t"( '"& t'" sa!"s "(" )a$",w!ile Se 11.*D0 a&&lies to ()diial lai#s Bi", it'i& 120

$a/s *(%) t'" $at" %* su)issi%& %* %)+!"t" $%u)"&ts t% 5.R T'us, SC *%u&$ t'" u$iia! !ai) it' t'" CTA +(")atu("

 – T'" 1./8/ day &e"iod u&$"( S" 112BD is (uia! i& !i&g a&a++"a! t% t'" CTA Se% ..B does not a&&ly to "ef)nds"editsof )n)tilied in&)t AT a"ising f"o# e"o8"ated sales

 –

.& %)+uti&g !"ga! +"(i%$s, t'" A$)i&ist(ati#" C%$" %* 1@8+("#ai!s %#"( t'" Ci#i! C%$" ( CIR v. Aichi 3orging Co. o& Asia" *.R. +o. 1/,/24"5ct 6" 2-1- )

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AL;E ADDED TAX

• San Ro@)e $% CIR *Fe2 ./10• a( 28, 2003 = Sa& R%u" !"$ a)"&$"$ a$)i&ist(ati#"

!ai) it' 5.R

• A+( 10, 2003 = .t !"$ +"titi%& *%( ("#i" it' CTA Bi",

a*t"( 13 $a/s

• SC R;LIN'

• 1 Sa& R%u" )ust %)+!/ it' t'" 120-$a/ aiti&g+"(i%$ T'is is )a&$at%(/ a&$ u(is$iti%&a! Fai!u(" t%

%)+!/ #i%!at"s t'" $%t(i&" %* "'austi%& %*a$)i&ist(ati#" (")"$i"s a&$ ("&$"(s t'" +"titi%&-REMAT;RE a&$ it'%ut a aus" %* ati%&6 '"&", t'"%u(t a&&%t aui(" u(is$iti%&

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AL;E ADDED TAX

• 2 CTA !a"te"; CTA a& ("#i" %& a++"a! $"isi%&s%* C.R i%!#i&g !ai)s *%( ("*u&$s, %( i& as" %*i&ati%&, 'i' is $"")"$ a $"&ia! .& t'is as", t'"("is &% C.R $"isi%& t% " ("#i""$ / t'" CTA

•

3 A"t% +, NCC; Ats ""ut"$ agai&st )a&$at%(/ %(+(%'iit"$ !as s'a!! " #%i$, ""+t '"& t'" !aits"!* aut'%(i>"s its #a!i$it/ H"(", t'"(" is &% su' !a

• ? A +"(s%& %))itti&g a #%i$ at %&t(a(/ t% t'")a&$at%(/ +(%#isi%& %* !a a&&%t !ai) %( aui("

a&/ (ig't *(%) 'is #%i$ at T'is $%t(i&" is ("+"at"$i& A"t% ..+G, NCC

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VALUE ADDED TAX

• -5ILEX MININ' $% CIR *./10

• Ot 21, 200 = P'i!" !"$ %(igi&a! VAT ("tu(& *%( 3200

• a( 20, 200 = .t !"$ a$)i&ist(ati#" !ai) it' 5.R

• Ot 1, 200 = .t !"$ +"titi%& *%( ("#i" it' CTA

• SC R;LIN'

• 1 P'i!" ti)"!/ !"$ its a$)i&ist(ati#" !ai) E#"&

i* t'" 2-/"a( +("s(i+ti#" +"(i%$ is %)+ut"$ *(%)t'" $at" %* +a/)"&t %* t'" %ut+ut ta u&$"( S"22@, it !"$ its !ai) %& ti)"

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AL;E ADDED TAX

VA• 2 C.R 'a$ u&ti!

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AL;E ADDED TAX

• A #)lti8&)"&ose oo&e"ati$e !"$ a !ai) *%( ("*u&$%* a!!"g"$ "((%&"%us!/ +ai$ a$#a&" VAT %& t'"it'$(aa! %* its ("&"$ suga( +(%$u"$ T'"%%+"(ati#" assai!"$ t'" #a!i$it/ %* RR 13-2008, 'i'+(%#i$"s *%( i&sta&"s '"(" it'$(aa! %* suga( *(%)("&"(/ is "")+t *(%) a$#a&" VAT – T'" CTA $i$ &%t (u!" %& t'" #a!i$it/ %* t'" ("gu!ati%& *%( !a7

%* u(is$iti%&, ut &%&"t'"!"ss a!!%"$ t'" +a(tia! ("*u&$ %*t'" a$#a&" VAT

 – T'" CTA '"!$ t'at t'" %%+4s sa!" %* suga( t% its )")"(sa&$ &%&-)")"(s is "")+t *(%) VAT 5%t' t'"a$)i&ist(ati#" a&$ u$iia! !ai)s "(" !"$ it'i& 2 /"a(s+u(sua&t t% S"s 20? a&$ 22@, N.RC (Gnited Cadiz Su'ar Aarmers *sso;ulti%Purpose Coop v. C!", CT* Case o. =>>$, *u' 16, 2011)

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AL;E ADDED TAX

• ADMINISTRATIE RE>;IREMENTS – REG.STRAT.ON

 – .NVO.C.NG

 –

5OOEEP.NG – F.L.NG OF TAX RETURN AND PAENT OF TAX

 – .THHOLD.NG OF TAX

 – .NVENTOR OF;•

GOODS, ATER.ALS AND SUPPL.ES• UNUSED NON-VAT .NVO.CES OR RECE.PTS

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AL;E ADDED TAX

• 6-TI6NAL AT RE'ISTRATI6N F6REXEM-T -ERS6N: – AN PERSON HO .S NOT REU.RED TO

REG.STER FOR VAT UNDER SU5SEC BG AELECT TO REG.STER FOR VAT PURPOSES

 – ELECT.ON .S .RREVOCA5LE FOR 3 EARS FROUARTER ELECT.ON AS ADE BS" 23BH, RA @33

 – AN PERSON HO .S VAT-EXEPT UNDER SEC?10@-1B5B1BV, NOT REU.RED TO REG.STERFOR VAT A, .N RELAT.ON TO SEC ?10@-2,ELECT TO 5E VAT-REG.STERED ONCE VAT-REG.STERED, HE CANNOT CANCELL H.SREG.STRAT.ON FOR THE NEXT 3 EARS (Sec. 10>%2, ""14%0$)

AL;E ADDED TAX

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AL;E ADDED TAX

• Signiane of AT "egist"ation – O&!/ VAT-("gist"("$ +"(s%&s a(" "&tit!"$ t% ("$it i&+ut

ta"s agai&st t'"i( %ut+ut ta – N%&-("gist(ati%& as a VAT ta+a/"( $%"s &%t "")+t 'i)

*(%) VAT %ut+ut ta !iai!it/ %& 'is taa!" sa!"s %*

g%%$s, +(%+"(ti"s %( s"(#i"s, '"(" 'is g(%ss sa!"s %((""i+ts *%( t'" +(""$i&g 12 )%&t's """$"$ P1)i!!i%&

 – E((%&"%us ("gist(ati%& as a VAT +"(s%& a&$%&s"u"&t!/, t'" issua&" / 'i) %* VAT i%i" %(

(""i+t )a7"s t'" +"(s%& !ia!" t% VAT – T'" u/"( %* "")+t g%%$s %( s"(#i" '% is i&

+%ss"ssi%& %* VAT i%i" %( (""i+t is "&tit!"$ t% i&+utta

AL;E ADDED TAX

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AL;E ADDED TAX

• RE'ISTER AS AT -ERS6N – VENUE

• LARGE TAXPAER BLTS• NON-LARGE TAXPAER BRDO '"(" +(i&i+a! +!a" %* usi&"ss

is !%at"$

 – 5.R FOR 2303 BC"(tiat" %* R"gist(ati%&

• CANCELL N6N8AT RE'ISTRATI6N – SURRENDER OR.G.NAL CERT OF REG.STRAT.ON

• -ENALT? F6R N6N8RE'ISTRATI6N Bi* g(%sssa!"s %( g(%ss (""i+ts """$ P1,@1@,00 – 12 OUTPUT TAX L.A5.L.T – NO .NPUT TAX CRED.T

• ANNUAL REG.TRAT.ON FEE = P00 *%( "#"(/s"+a(at" %( $isti&t "sta!is')"&t

AL;E ADDED TAX

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AL;E ADDED TAX

• RE>;IRED INF6RMATI6N IN IN6ICE 6R RECEI-T – NAE AND ADDRESS OF SELLER – STATEENT THAT SELLER .S VAT-REG.STERED PERSON W T.N B%(

 T.N; VAT – DATE, T, UN.T COST, AND DESCR.PT.ON OF GOODS OR NATURE

OF SERV.CE –  TOTAL AOUNT

• SE-ARATE INDICATI6N 6F AT (prev. Sec. 106(55=)

 – VAT sa!"s i%i" %( %ia! (""i+t a&$ %t'"(su++!")"&ta! ("%($s s'a!! "a( t'" stat")"&t t'at 9itis #a!i$ %&!/ *%( a +"(i%$ %* #" /"a(s *(%) $at" %* ATP:BRC 2013

AL;E ADDED TAX

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AL;E ADDED TAX

• SE-ARATE IN6ICE 6R RECEI-T – SU5

8/19/2019 TT, VAT AND OPT-2013

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AL;E ADDED TAX

• AT sales in$oie o" "eei&t – .& as" %* sa!"s %* P1,000 %( )%(", '"(" t'" sa!" is

)a$" t% a VAT-("gist"("$ +"(s%&, t'" &a)", usi&"ssst/!", a$$("ss a&$ T.N %* t'" +u('as"( s'a!! "

i&$iat"$ – .* t'" +u('as"( i!! &%t #%!u&ta(i!/ $is!%s" t'" a%#"

i&*%()ati%&, t'" gas%!i&" $"a!"( 'as &% #a!i$ "us"*%( &%t 7&%i&g t'" status %* its "eg)la" )sto#e" B'"t'"( VAT %( &%&-VAT +"(s%&6 '"&", it s'a!! "

!ia!" *%( a&/ %)issi%& %* t'" i&*%()ati%& i& t'"i%i"(""i+t H%"#"(, *%( sa!"s t% non8"eg)la")sto#e"s, t'"/ %u!$ &%t " "&tit!"$ t% i&+ut ta"s(";C 2>%200$, 9une 2>, 200$)

AL;E ADDED TAX

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83/99

AL;E ADDED TAX

• S"+a(at" i%i"s %( (""i+ts *%( VAT a&$ &%&-VATt(a&sati%&s )a/ " issu"$, +(%#i$"$ t'at t'" t"() 9VATEXEPT: %( 9VAT QERO-RATED: s'a!! " (itt"& %(+(i&t"$ +(%)i&"&t!/ %& t'" i%i" %( (""i+t

• ;se of single in$oie"eei&t in$ol$ing AT andnon8AT t"ansations – T'" s"!!"( 'as t'" %+ti%& t% us" a si&g!" i%i" (""i+t,

+(%#i$"$ t'at t'" ("a7$%& %* t'" sa!"s +(i" "t""&taa!", "")+t a&$ >"(%-(at"$ sa!"s a&$ a!u!ati%& %* t'"VAT %& "a' +%(ti%& %* t'" sa!" is s'%& %& t'"

i%i"(""i+t – F%( t'is +u(+%s", t'" +(i&t"$ i%i"(""i+t )ust (""t t'"

taa!", "")+t a&$ >"(%-(at"$ sa!"s, "it'"( i& s"+a(at"%!u)&s %( s"+a(at" (%s (";C 2>%200$ and ";C 62%200$)

AL;E ADDED TAX

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84/99

AL;E ADDED TAX

• ;se of CRM-6S – Ta+a/"(-us"(s '% 'a#" ""& issu"$ +"()its t%

us" sa!"s )a'i&"s a(" ("ui("$ t% ("-%&gu("t'"i( )a'i&"s i& %&*%()it/ it' RA @33 T'"

+(%g(a) s'a!! (""t a&$ s'% s"+a(at"!/ t'"12 %ut+ut ta (";C #%2006, 9an 51, 2006)

 – T'"/ a(" &%t ("ui("$ t% a++!/ *%( ("-a("$itati%&ut t'"/ 'a#" t'" ("s+%&sii!it/ t% ("-%&gu("t'" )a'i&"s H%"#"(, t'" 5.R ("s"(#"s t'"(ig't t% '"7 (a&$%)!/ t'"i( %)+!ia&", a&$ i**%u&$ &%&-%)+!ia&t, t'" 5.R s'a!! it'$(a t'"i(a("$itati%& +!us +"&a!ti"s (";C 62%200$, :ct 1#, 200$)

AL;E ADDED TAX

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AL;E ADDED TAX

•  T'" i%ii&g ("ui(")"&t s"t *%(t' i& S" ?108-1 %* RR -@, +a(tiu!a(!/ t'" +(i&ti&g %* t'" %($9>"(%-(at"$: %& i%i"s(""i+ts, t'%ug' &%t"+("ss!/ +(%#i$"$ i& !a, as ("%g&i>"$ as

("as%&a!" a&$ i& a%($ it' t'" "i"&t%!!"ti%& %* VAT '"& RA @33 t%%7 "I"t %&N%# 1, 200, it i&!u$"$ t'" i%ii&g ("ui(")"&tu&$"( RR -@

•

 T'" %"(si%& *(%) ("gu!ati%& t% !a $i$ &%t$i)i&is' t'" i&$i&g *%(" %* su' ("gu!ati%& it'("s+"t t% ats %))itt"$ +(i%( t% t'" "&at)"&t%* t'at !a (Panasonic Communication !ma'in' Corp o te Pil v. C!",.". o. 1=#0>0, Aeb #, 2010).

•  T'us, t'" !ai) *%( ("*u&$ %( ta ("$it it'%ut

AL;E ADDED TAX

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AL;E ADDED TAX

•  T'" as"&" %* t'" %($ 9>"(%-(at"$:%& t'" i%i"s(""i+ts is *ata! t% a!ai) *%( ("*u&$ %( ("$it %* i&+ut ta

•  T'" +"(i%$ i%!#"$ i& t'is ("*u&$ ("*"(st% t'" taa!" ua(t"(s %* 2000 (9"*Pilippines v. C!", .". o. 1==12=, :ct 11, 2010)

• N%&-%)+!ia&" it' t'" ("ui(")"&ts

u&$"( S" ?108-1 %* RR -@ is *ata! t%t'" !ai) *%( ("*u&$ (+itaci lobal Stora'eTecnolo'ies Pil Corp v. C!", .". o. 1=4212, :ct 20, 2010)

AL;E ADDED TAX

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AL;E ADDED TAX

•  T'" SC $"&i"$ ta+a/"(4s !ai) *%( ("*u&$*%( *ai!u(" t% %)+!/ it' t'"susta&tiati%& ("ui(")"&ts u&$"( RR -@, +a(tiu!a(!/ t'" i)+(i&ti&g %* t'" %($9TIN8AT: i& t'" i%i"s a&$ (""i+ts

• SC ("it"(at"$ t'at S" ?108-1 %* RR -@&"it'"( "+a&$"$ &%( su++!a&t"$ t'" Ta

C%$", ut )"("!/ su++!")"&t"$ 'at t'" Ta C%$" a!("a$/ $"&"$ a&$ $isuss"$(Iepco Pil v. C!", .". o. 1#1#$#, ov 24, 2010)

AL;E ADDED TAX

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88/99

AL;E ADDED TAX

• A VAT-("gist"("$ ta+a/"( is ("ui("$ t% %)+!/ it' a!! t'" VATi%ii&g ("ui(")"&ts t% " a!" t% !" a !ai) *%( i&+ut ta"s%& $%)"sti +u('as"s *%( g%%$s %( s"(#i"s att(iuta!" t%>"(%-(at"$ sa!"s A 9AT in$oie: is a& i%i" t'at )""ts t'"("ui(")"&ts %* S" ?108-1 %* RR -@ 9A!! +u('as"s

%#"("$ / i%i"s %t'"( t'a& a VAT i%i" s'a!!not

 gi#" (is"t% a&/ i&+ut ta:

• i(%s%*t4s i%i", !a7i&g t'" %($ 9>"(%-(at"$: is &%t a 9VATi%i": a&$ t'us a&&%t gi#" (is" t% a&/ i&+ut ta (;icrosot Pil v.C!", .". o. 1#01=5, *pr 6, 2011).

• Fai!u(" t% i&$iat" i& t'" sa!"s i%i"s %( (""i+ts t'" Aut'%(it/ T% P(i&t is not *ata! t% t'" !ai) 'at is i)+%(ta&t is t'at ATP'as ""& s"u("$ / ta+a/"( a&$ i%i"s %( (""i+ts a("("gist"("$ (Silicon Pil v. C!", .". o. 1=25=#, 9an 1=, 2011).

AL;E ADDED TAX

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AL;E ADDED TAX

• Sales in$oie $s% oial "eei&t – P"titi%&"( %I"("$ i& "#i$"&" VAT i%i"s t% susta&tiat" its >"(%-(at"$

sa!"s CTA "& a& $"&i"$ +"titi%&"(4s !ai), stati&g t'at si&" it is"&gag"$ i& sa!" %* s"(#i"s, VAT (""i+ts s'%u!$ 'a#" ""& +("s"&t"$

 – S" 113 %* t'" Ta C%$" $%"s &%t ("at" a $isti&ti%& "t""& a sa!"si%i" a&$ a& %ia! (""i+t Sa!"s i%i"s a(" ("%g&i>"$

%))"(ia! $%u)"&ts t% *ai!itat" t(a&sati%&s T'"/ a(" +(%%*s t'atusi&"ss t(a&sati%&s 'a#" ""& %&!u$"$ T'us, a& i%i" %u!$su", +(%#i$"$ susta&tiati%& ("ui(")"&ts a(" )"t (*T@T CommunicationsServices Pil v. C!", .". o. 1#2564, Aug 4" 2-1- )

 – T'"(" is a &" $isti&ti%& "t""& a VAT i%i" a&$ a VAT %ia!

(""i+t 9VAT i%i" a&$ VAT (""i+t s'%u!$ &%t " %&*us"$ as("*"((i&g t% %&" a&$ t'" sa)" t'i&g C"(tai&!/, &"it'"( $%"s t'" !ai&t"&$ t'" t% t% " us"$ a!t"(&ati#"!/ (Iepco Pil Corp v. C!", .". o. 1#1#$#, +ov2," 2-1- )

AL;E ADDED TAX

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90/99

AL;E ADDED TAX

• RC ?-@ a!!%s t'" i&+ut ta"s t% " ("$it"$ *(%) %ut+utta"s '"(" a$#"(tisi&g ag"&/ issu"s VAT (""i+t t%a$#"(tis"( *%( t'" "&ti(" a)%u&t (""i#"$, "#"& i* t'"ag"&/ ("%g&i>"s %&!/ 1 s'a(" i& t'" t%ta! a)%u&ti!!"$

• 9Rele$ant s)&&o"ting do)#ents: a(" $%u)"&ts&""ssa(/ t% su++%(t t'" !"ga! asis i& $is+uti&g a taass"ss)"&t as $"t"()i&"$ / t'" ta+a/"( Ot'"(is", ata+a/"( i!! " at t'" )"(/ %* t'" 5.R, 'i' )a/ ("ui("

+(%$uti%& %* $%u)"&ts t'at ta+a/"( a&&%t su)it RR-@ $%"s &%t ("ui(" %(igi&a! t% " su)itt"$ t% t'" 5.R(C!" v. 9imenez asic *dvertisin', CT* 8 $0>, Aeb >, 2010, citin' C!" v. Airst8-press Pa/nsop Co, .". o. 1=204$, 9une 16, 200>).

AL;E ADDED TAX

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91/99

AL;E ADDED TAX

• AT "et)"ns – '"& !ai)i&g ta ("*u&$("$it, t'" VAT-

("gist"("$ ta+a/"( )ust " a!" t% "sta!is't'at Ba it $%"s 'a#" ("*u&$a!" %( ("$ita!"

i&+ut VAT, a&$ B t'" sa)" 'as &%t ""&a++!i"$ agai&st its %ut+ut VAT = t'" i&*%()ati%&t'at su++%s"$ t% " (""t"$ i& ta+a/"(4s VAT("tu(&s T'us, a& a++!iati%& )ust "

a%)+a&i"$ / %+i"s %* t'" ta+a/"(4s VAT("tu(&Bs *%( t'" ua(t"(Bs %&"(&"$ (*tlasConsolidated ;inin' @ 4=1, 9an 26, 2011)

AL;E ADDED TAX

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92/99

AL;E ADDED TAX

• Final 4it!!olding Tax on -ay#ents to Non8Resident -e"son

 – Pa(t/ ("ui("$ t% it''%!$ VAT is t'" +a/%(, ("ga($!"ss %*'"t'"( %( &%t '" is VAT-("gist"("$ .* it is a &%&-VAT+"(s%&, VAT "%)"s +a(t %* %st %* ass"t %( "+"&s"

 – VAT is +ass"$ %& t% t'" u/"(-("si$"&t it''%!$i&g ag"&t

 – Pa/%( s'a!! !ai) i&+ut ta u+%& !i&g %* its VAT ("tu(&,su"t t% a!!%ati%& %* i&+ut ta

 – Du!/ !"$ 5.R F%() 100 is t'" +(%%* %( $%u)"&ta(/

susta&tiati%& *%( t'" i&+ut ta – it''%!$i&g ta s'a!! " (")itt"$ it'i& 10 $a/s

*%!!%i&g t'" "&$ %* t'" )%&t' it''%!$i&g as )a$"

AL;E ADDED TAX

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93/99

AL;E ADDED TAX

• Final 4it!!olding Tax on sales togo$e"n#ent – Sa!" %* %a! t% NPC / a '%!$"( %* C%a! O+"(ati&g

C%&t(at is "")+t *(%) &a! it''%!$i&g VAT RA

@33 &"it'"( "+("ss!/ &%( i)+!i"$!/ ("+"a!"$ PD @2A s+"ia! !a a&&%t " ("+"a!"$, a)"&$"$ %( a!t"("$/ a sus"u"&t g"&"(a! !a / )"(" i)+!iati%&

 – T'" a++!ia!" +(%#isi%&s a(" S"s 20? a&$ 22@,N.RC, 'i' gi#"s t'" ta+a/"( a +"(i%$ %* t% /"a(s

*(%) $at" %* +a/)"&t it'i& 'i' t% !" %t' itsa$)i&ist(ati#" a&$ u$iia! !ai)s *%( ("*u&$ (Semirara;inin' Corp v. C!", CT* Case o. ==2=, Aeb 10, 2011)

RE RE'S N6% 1.8./11,

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, K)ly .+, ./11• Re&o"to"ial "e@)i"e#ents fo" esta2lis!#ents

leasing s&aes fo" o##e"ial ati$ities – .t s'a!! " t'" ("s+%&sii!it/ %* a!! %&"(s %( su-!"ss%(s %*

%))"(ia! "sta!is')"&tsui!$i&gs s+a"s t% "&su(" t'at!"ss"" is a 5.R-("gist"("$ ta+a/"( BT.N, COR, a&$ ("gist"("$

i%i"s (""i+ts – E#"(/

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,./, ./1.

• -ERS6NS RE>;IRED T6 S;9MIT SLS – A!! +"(s%&s !ia!" *%( VAT, su' as )a&u*atu("(s, '%!"sa!"(s,

s"(#i"-+(%#i$"(s, a)%&g %t'"(s, a(" ("ui("$ t% su)itSu))a(/ List %* Sa!"s

• -ERS6NS RE>;IRED T6 S;9MIT SL- – A!! +"(s%&s !ia!" *%( VAT, su' as )a&u*atu("(s, s"(#i"-

+(%#i$"(s, a)%&g %t'"(s, a(" ("ui("$ t% !" Su))a(/ List %*Pu('as"s

• R;LES IN S;9MISSI6N – ua(t"(!/ SLSSLP s'a!! " su)itt"$ t'(u %)+at-$is7-

("%($a!" BCDR )"$iu) *%!!%i&g t'" *%()at +(%#i$"$ i&sus"ti%& 9g: '"("%* T'" )ag&"ti *%() B3-i&' %++/$is7"tt"s i& RR 1H8.//+ s'a!! '"&"*%(t' ("*"( t% CDR

 – RR 1-2012 s'a!! ta7" "I"t %&

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,./, ./1.

• RR 1H8./11, 6t ., ./11 – +IRC ection 5ld Amount +e' Amount 

 – S" 10@BP P1,00,000 P1,@1@,00 R"s L%t

 – S" 10@BP 2,00,000 3,1@@,200 R"s HYL

 – S" 10@B 10,000 12,800 R"s u&it

 – S" 10@BV 1,00,000 1,@1@,00 A&&ua!

• EFFECTIIT? 6F ADK;STED T5RES56LD AM6;NT – .* i&st(u)"&t %* sa!" is ""ut"$ a&$ &%ta(i>"$ %& %( a*t"( 

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, K)ne 1, ./1.•  K N6T TAXA9LE AS C6R-6RATI6N

 – 

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98/99

, K)ne 1, ./1.•  

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• END 6F -RESENTATI6N

•  *tt3. Jic C. ;amalateo

• %i!"; 0@3@-@20@16 0@1-

280??• E)ai!; #i)a)a!at"%Z/a'%%%)•

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