Return and payment of VAT
- In general – VAT return shall be filed and the tax due thereon be paid within 25 days following the close of each taxable quarter.
- VAT-registered persons shall declare and pay VAT on a monthly basis, not later than the 20th day following the close of each of the first two months of a taxable quarter; taxpayers under the EFPS, on or before a prescribed due date based on the business industries classification.
- Advance payment of VAT
- Sale of refined sugar – 12% VAT rate on the base price of P850 per 50 kg. bag produced by a sugar refinery, and P750 per 50 kg. bag produced by a sugar mill.
- Sale of flour – 12% VAT rate on the tax base for imported wheat by a flour miller, as follows: 75% of the sum of: (a) the invoice value multiplied by the currency exchange rate on the date of payment; (b) estimated customs duties and other charges of the imported wheat from customs custody (exclusive of the advance VAT); and (c) 5% on the sum of (a) and (b).
- When paid?
- Prior to withdrawal of the refined sugar from any sugar refinery or mill;
- Prior to release from the Bureau of Customs for imported wheat declared for flour milling; and
- Prior to delivery of purchases by flour millers of imported wheat from traders.
- Persons whose registration has been cancelled
A. Any person whose registration has been cancelled shall file a return and pay the tax due thereon within 25 days from the end of the month the business ceases to operate or when VAT registration has been officially cancelled.
B. Only one consolidated return shall be filed for the principal place of business or head office and all branches.
Where to file the return and pay the tax –
In any one of the following located within the revenue district where the taxpayer is registered or required to register:
- Authorized agent bank
- Revenue collection officer
- Duly authorized city or municipal treasurer
JONATHAN RUIZ CPA, MIB