Objectives
After this presentation, you should be able to:• Determine taxpayers required to register
under the VAT system• Identify the tax consequence of failing to
register as VAT entity• Identify entities exempt from VAT• Discuss optional registration in VAT
Required Registration
Required Registration
Natural or Artificial Beings
Required Registration
Natural or Artificial Beings
Required Registration
Natural or Artificial Beings
Required Registration
Natural or Artificial Beings
> P 1,919,500.00
Required Registration
Natural or Artificial Beings
> P 1,919,500.00
Required Registration
Natural or Artificial Beings
> P 1,919,500.00
Required Registration
Required Registration
Required Registration
Required Registration
Required Registration
> P 10 Million
Required Registration
> P 10 Million
Required Registration
> P 10 Million
Required Registration
Required Registration
Existing Business
Required Registration
Existing Business
> P 1,919,500.00
Required Registration
Existing Business
> P 1,919,500.00Any 12-month
period
Required Registration
Existing Business
> P 1,919,500.00Any 12-month
period
Required Registration
Existing Business
> P 1,919,500.00Any 12-month
period
Required Registration
Required Registration
• Register within 10 days after the end of the month when the threshold was met
Required Registration
• Register within 10 days after the end of the month when the threshold was met
• Liable to VAT on the first day of the month after registration
Failure to Register Under VAT
Failure to Register Under VAT
Pay VAT on Gross Sales or Receipts
Failure to Register Under VAT
Pay VAT on Gross Sales or Receipts
Input tax cannot be claimed
Failure to Register Under VAT
Failure to Register Under VAT
Charging of VAT to customers is not allowed
Failure to Register Under VAT
Charging of VAT to customers is not allowed
Fines and penalties will be imposed
VAT-Exempt Entities
VAT-Exempt Entities
P 100,000 Gross Sales/ Receipts
VAT-Exempt Entities
P 1,919,500 Threshold
P 100,000 Gross Sales/ Receipts
VAT-Exempt Entities
P 1,919,500 Threshold
P 100,000 Gross Sales/ Receipts
VAT-Exempt Entities
VAT-Exempt Entities
Cooperatives other than electric cooperatives
VAT-Exempt Entities
P 10 Million Threshold
Cooperatives other than electric cooperatives
VAT-Exempt Entities
P 10 Million Threshold
Cooperatives other than electric cooperatives
VAT-Exempt Entities
VAT-Exempt Entities
Regional Area Headquarters of Multinationals
VAT-Exempt Entities
Businesses in eco-zones and free port zones
Regional Area Headquarters of Multinationals
VAT-Exempt Entities
VAT-Exempt Entities
• Register as Non-Vat Entities
VAT-Exempt Entities
• Register as Non-Vat Entities• Pay P500 Registration Pay• Except for:
VAT-Exempt Entities
• Register as Non-Vat Entities• Pay P500 Registration Pay• Except for:
VAT-Exempt Entities
• Register as Non-Vat Entities• Pay P500 Registration Pay• Except for:
Optional Registration as VAT Entity
Optional Registration as VAT Entity
P 1,919,500 Threshold
Optional Registration as VAT Entity
P 1,919,500 Threshold
P 10 Million Threshold
Optional Registration as VAT Entity
P 1,919,500 Threshold
P 10 Million Threshold
Optional Registration as VAT Entity
Optional Registration as VAT Entity
P 1,919,500 Threshold
Optional Registration as VAT Entity
P 1,919,500 Threshold
Irrevocable for a THREE YEAR
Period
Optional Registration as VAT Entity
P 1,919,500 Threshold
Irrevocable for a THREE YEAR
Period
Optional Registration as VAT Entity
P 1,919,500 Threshold
Irrevocable for a THREE YEAR
Period
Optional Registration as VAT Entity
Optional Registration as VAT Entity
P 10 Million Threshold
Optional Registration as VAT Entity
IrrevocablePERPETUALLY
P 10 Million Threshold
Optional Registration as VAT Entity
IrrevocablePERPETUALLY
P 10 Million Threshold
Optional Registration as VAT Entity
IrrevocablePERPETUALLY
P 10 Million Threshold