Page 2 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
Page 3 Required Registration
Page 4 Required Registration
Natural or Artificial Beings
Page 5 Required Registration
Natural or Artificial Beings
Page 6 Required Registration
Natural or Artificial Beings
Page 7 Required Registration
Natural or Artificial Beings
> P 1,919,500.00
Page 8 Required Registration
Natural or Artificial Beings
> P 1,919,500.00
Page 9 Required Registration
Natural or Artificial Beings
> P 1,919,500.00
Page 10 Required Registration
Page 11 Required Registration
Page 12 Required Registration
Page 13 Required Registration
Page 14 Required Registration
> P 10 Million
Page 15 Required Registration
> P 10 Million
Page 16 Required Registration
> P 10 Million
Page 17 Required Registration
Page 18 Required Registration
Existing Business
Page 19 Required Registration
Existing Business
> P 1,919,500.00
Page 20 Required Registration
Existing Business
> P 1,919,500.00Any 12-month
period
Page 21 Required Registration
Existing Business
> P 1,919,500.00Any 12-month
period
Page 22 Required Registration
Existing Business
> P 1,919,500.00Any 12-month
period
Page 23 Required Registration
Page 24 Required Registration
• Register within 10 days after the end of the month when the threshold was met
Page 25 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
Page 26 Failure to Register Under VAT
Page 27 Failure to Register Under VAT
Pay VAT on Gross Sales or Receipts
Page 28 Failure to Register Under VAT
Pay VAT on Gross Sales or Receipts
Input tax cannot be claimed
Page 29 Failure to Register Under VAT
Page 30 Failure to Register Under VAT
Charging of VAT to customers is not allowed
Page 31 Failure to Register Under VAT
Charging of VAT to customers is not allowed
Fines and penalties will be imposed
Page 32 VAT-Exempt Entities
Page 33 VAT-Exempt Entities
P 100,000 Gross Sales/ Receipts
Page 34 VAT-Exempt Entities
P 1,919,500 Threshold
P 100,000 Gross Sales/ Receipts
Page 35 VAT-Exempt Entities
P 1,919,500 Threshold
P 100,000 Gross Sales/ Receipts
Page 36 VAT-Exempt Entities
Page 37 VAT-Exempt Entities
Cooperatives other than electric cooperatives
Page 38 VAT-Exempt Entities
P 10 Million Threshold
Cooperatives other than electric cooperatives
Page 39 VAT-Exempt Entities
P 10 Million Threshold
Cooperatives other than electric cooperatives
Page 40 VAT-Exempt Entities
Page 41 VAT-Exempt Entities
Regional Area Headquarters of Multinationals
Page 42 VAT-Exempt Entities
Businesses in eco-zones and free port zones
Regional Area Headquarters of Multinationals
Page 43 VAT-Exempt Entities
Page 44 VAT-Exempt Entities
• Register as Non-Vat Entities
Page 45 VAT-Exempt Entities
• Register as Non-Vat Entities• Pay P500 Registration Pay• Except for:
Page 46 VAT-Exempt Entities
• Register as Non-Vat Entities• Pay P500 Registration Pay• Except for:
Page 47 VAT-Exempt Entities
• Register as Non-Vat Entities• Pay P500 Registration Pay• Except for:
Page 48 Optional Registration as VAT Entity
Page 49 Optional Registration as VAT Entity
P 1,919,500 Threshold
Page 50 Optional Registration as VAT Entity
P 1,919,500 Threshold
P 10 Million Threshold
Page 51 Optional Registration as VAT Entity
P 1,919,500 Threshold
P 10 Million Threshold
Page 52 Optional Registration as VAT Entity
Page 53 Optional Registration as VAT Entity
P 1,919,500 Threshold
Page 54 Optional Registration as VAT Entity
P 1,919,500 Threshold
Irrevocable for a THREE YEAR
Period
Page 55 Optional Registration as VAT Entity
P 1,919,500 Threshold
Irrevocable for a THREE YEAR
Period
Page 56 Optional Registration as VAT Entity
P 1,919,500 Threshold
Irrevocable for a THREE YEAR
Period
Page 57 Optional Registration as VAT Entity
Page 58 Optional Registration as VAT Entity
P 10 Million Threshold
Page 59 Optional Registration as VAT Entity
IrrevocablePERPETUALLY
P 10 Million Threshold
Page 60 Optional Registration as VAT Entity
IrrevocablePERPETUALLY
P 10 Million Threshold
Page 61 Optional Registration as VAT Entity
IrrevocablePERPETUALLY
P 10 Million Threshold