Tax base of VAT on sale of services and lease of properties
|Cash received (actually and constructively)||xxx|
|Advance payments for future projects||xxx|
|Materials charged with the services||xxx|
|Tax base (gross receipts, excluding VAT)||xxx|
|Total invoice amount||xxx
Note: Receivables, although earned, are not included.
Questions to Ponder:
In the value-added tax on sale of services, the output tax is computed:
A. On billings of the month.
B. On collections of the month on all billings made.
C. On the contract price of contracts completed during the taxable period.
D. Only and strictly on labor performed under the contract for services.
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JONATHAN RUIZ CPA, MIB