Value Added Tax (VAT) in the Philippines

On this video, I explained what is Value Added Tax (VAT) and demonstrated the computation of VAT Payable/Creditable Input VAT along with the journal entries.

Value-Added Tax (VAT) is a form of sales tax. It is a tax on consumption levied on the sale, barter, exchange or lease of goods or properties and services in the Philippines and on importation of goods into the Philippines. It is an indirect tax, which may be shifted or passed on to the buyer, transferee or lessee of goods, properties or services.

📚 Who are Required to File VAT Returns?
- Any person or entity who, in the course of his trade or business, sells, barters, exchanges, leases goods or properties and renders services subject to VAT, if the aggregate amount of actual gross sales or receipts exceed Three Million Pesos (Php3,000,000.00)
- A person required to register as VAT taxpayer but failed to register
- Any person, whether or not made in the course of his trade or business, who imports goods

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References:

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⌚️Time Stamps:
0:00 Intro
0:36 Concept of VAT
1:39 Input VAT vs. Output VAT
2:19 VAT Sales
3:30 Zero-rated Sales
4:26 Vat-exempt Sales
5:26 Mixed Sales
6:38 VAT Returns Filing
7:06 Outro

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📱 Social Media:
Tiktok/gerardcarpizo

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Disclaimer:
This video is mainly for academic purposes and is not a substitute in doing due diligence. For highly technical tax issues, seek professional assistance or contact BIR for proper tax compliance.

[rdm]

No fillers and straight to the point. Very helpful for concept recall. Thank you Sir Gerard! 👍

[rich-]

You are a literal lifesaver for my subject on taxation. Thank you for doing what you do, you've done such a great service for students struggling in online learning. In times when you feel like giving up remember there are people you've helped out tremendously. ❤

[ellasagan]

Thank you for this lecture, Sir. This will help me a lot.

Brief but very helpful.

[mingyu]

Sir! This is a very good refresher. And actually nalilito pa rin ako but through your illustrations, mas nagegets ko po sya. Thank you so much po! And more videos like this po ♡

[francheskamuega]

Thank you sir, for making this video and teaching the topics, it is easy to understand and follow 🥰🥰

[yuriotori]

u teach better than my professor, so helpful for a student like me :))) ty

[mcoico]

Great tutorial video again Sir on VAT or value added tax, very informative for tax payers like me who renders service in the public transport industry, this tutorial video is very helpful to us. Thank you for this very timely and informative video Sir. Looking forward for more:)

[cleogrey]

Thank you po sir ang galing niyo magturo, sana Customs/ Tariff tax next.. hehehe

[fevlynb]

galing nyo po mag.explain 👏 very precise .

[danimari]

Thank you so much po! I learned a lot <3

[hnrymorales]

Can you also discuss VAT on inventory items for Merchandise business?

[boyscout-pu]

hi sir in continuation sa influencer vlogs nyo, i think madami din interested sa topic comparing the option for 8% and use of graduated income tax rate + percentage tax depende sa income bracket. pag nasa 250-400k income mo sa graduated eh 20% na yata tax rate whereas kung 8% pinili mo eh 8% padin sya kahit 2-3M income mo? so mas mababa ang rate sa 8% at mas maganda option ito if under 3m income mo as influencer? i hope you can confirm this in your next vlog po.

[nabongs]

I have a question po. Yung Input tax po ba is for the purchases of inventory lang po ba?? Or lahat po ng purchases nung vat inclusive business is may input vat?

[jinalyncastro]

san po nanggaling yung input vat na 4, 200 sa case#4 na problem?

[MichaelMendoza-mprm]

Hello Sir, Is renewable energy like solar equipment subject to VAT? Do i need pay the VAT when i buy solar equipment from our local dealers? How does RE VAT exception/credit (if there is) works here in the Philippines? Thanks

[rodelatomco]

sir with regards po sa advances from customers ng service company ang question ko. ang output vat ba ng advances from customers is part ng deferred tax asset sa balance sheet? tama ba ang entry na debit 112k cash, debit 12k deferred tax asset, credit 12k output tax at credit 112k advances from customers?

[leusmaximusx]

so, is a VAT exclusive sale are those normally made only by non-VAT-registered sellers ?

Normally a VAT-registered Sellers include the VAT in their sales to pass the burden to the buyer immediately, correct ?
Thanks

[nikjov]

Request update on receipts. Which receipts can be considered both vat claimable and withholding deductible, or only vat claimable but not withholding deductible

[Rush_The_Rusher]

Sa case number 4, bakit kinalahati ung input vat na 8, 400 into 4, 200? Ung output ang half diba kasi half is regular sales and the other half is exempt sales, bakit nakalahati din ung sa input? thank you I was just confused.

[michm.]

Sir, can u explain what is prepaid vat? And how is it filed in monthly and quarterly vay return?