Chapter 9.3 - WHAT ARE EXCLUDED FROM INPUT VAT CARRYOVER 1 2 3 Advanced VAT which have been applied for a tax credit certificate Input VAT

Chapter 9.3 - WHAT ARE EXCLUDED FROM INPUT VAT...

This preview shows page 1 out of 1 page.

WHAT ARE EXCLUDED FROM INPUT VAT CARRY- OVER? 1. Advanced VAT which have been applied for a tax credit certificate 2. Input VAT attributable to zero-rated claim which have been applied for a tax refund or tax credit certificate 3. Input VAT attributable to zero-rated sales that expired after the two-year prescriptive period RULES ON CLAIM FOR CREDIT OF INPUT VAT 1. Specific identification - Input VAT that can be traced to a particular sale transaction is credited against the output VAT of such sales (Matching Principle) 2. Pro-rata allocation - Input VAT that cannot be traced to a particular sale transaction is allocated proportionately on the basis of sales. COMPOSITION OF CREDITABLE INPUT VAT 1. Input VAT traceable to regular sales 2. Input VAT traceable to export sales that are not applied for tax refund or tax credit 3. 7% of sales to government agencies or GOCCs COMPUTATION

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture