Determination of creditable input taxes


Determination of creditable input taxes

Input taxes on domestic purchases or importations   xxx
Transitional input tax   xxx
Presumptive input tax   xxx
Input tax carried over from previous month/quarter   xxx
Total input taxes   xxx
Input taxes claimed as refund xxx  
Input taxes claimed as tax credit for other NIRC taxes xxx  
Input taxes applicable to purchase returns and allowances  


Input taxes attributable to sales subject to VAT withholding  


Input taxes attributable to VAT-exempt sales xxx xxx
Net creditable input taxes   xxx

Excess output or input taxes

  1. If at the end of any taxable month or quarter the output tax exceeds the input tax, the difference is VAT payable (current liability).
  2. If the input tax at the end of any taxable quarter (inclusive of input tax carried over from the previous quarter) exceeds the output tax, the excess input tax (current asset) shall be carried over to the succeeding taxable month or quarter, provided that any input tax attributable to 0-rated sales by a VAT-registered person may at his option be refunded or applied for a tax credit certificate.

Questions to ponder:

The formula: Output taxes (less) input taxes (equals) value-added tax payable means that:

A. Value-added taxes are not deductible from gross income.

B. Value-added taxes paid on purchases are prepayments.

C. Value-added taxes during a taxable period may not appear in the financial statements.

D. All the above statements are correct.

For the correct answers,  I would like to invite you to join my Facebook exclusive groups of aspiring CPAs for my upcoming project “CPA DREAM ACADEMY ” or sign up for flashcards free

CPA Mentor,




About Jonathan Ruiz CPA

Entrepreneur, CPA Mentor, Stock market Newbie Mentor, Influential Author and Master's Degree in International Business graduate in Hult International Business School, UK. A father of two lovely daughters.
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