Business Tax Chapter 8 Reviewer
Business Tax Chapter 8 Reviewer
Business Tax Chapter 8 Reviewer
1
Q. Lease of Residential Units Part 4
S. Transport of passengers by international
carriers doing business in the Phil.
2
COMPUTATION OF VAT PAYABLE Subject to Zero-rated Sales
A. Goods or Properties
1. Sale and actual shipment of goods from Phil to
foreign country
2. Sale of goods engage in intl shipping or air
Sources of Output VAT transport carriers
1. Actual Sale (Domestic Sale) 3. Sale to persons whose exemption from direct of
2. Transaction Deemed Sale indirect tax under special laws ay subject sales
a. Transfer, use or consumptions NOT in the to 0% rated
ordinary course of business intended for 4. Sale of raw mats, inventories, supplies to a
sale or use in the course of business Registered Export Enterprise (REE) to be used
b. Distribution or Transfer to directly and exclusively in its registered project
▪ Shareholders as share in
profits B. Services
▪ Distribution or transfer to 1. Services other than processing,
creditors in payment of debt manufacturing or repacking rendered to a
or obligation person engaged in business conducted
- outside Phil
c. Consignment of goods if actual sale not 2. Services to person- exemption from direct or
made w/in 60 days indirect tax – subject to 0%
d. Retirement from or cessation of status of VAT 3. Sale of service to REE
registered person w/ respect to all “goods at 4. Services rendered to persons engaged in intl
hand” shipping or air transport operations
Ff. are not considered transaction deemed sale 5. Transport of passengers and cargo by
1. Change in control of a corpo by acquisition domestic air or sea vessels from Phil to
of the controlling interest foreign country (transpo of passenger and
2. Change in the trade or corporate name of cargo exempt from VAT, but cargo still liable
the taxpayer to 3% CCT)
3. Merger or consolidation of corporations 6. Sale of power of fuel generated thru
renewable sources of energy
3. Zero Rated Sale (0% VAT)
VAT Registered = 0% rated
3
Input VAT If Ad-valorem
Sources of Input VAT
1. Local purchase of goods or services
2. Acquisition of Capital Goods
3. Importation
4. Presumptive Input VAT
5. Transitional Input VAT
6. Creditable withholding VAT
4
Lease of Real Property
• Commercial – 12% VAT
• Residential – Exempt, OPT, or VAT
Place of Filing