Computation of output VAT



With                  VAT  
  Gross receipts       xxx         xxx  
  Multiplied by                        12%       12/112
  Output VAT       xxx         xxx

Sources of output VAT

  1. Actual sales
  2. Zero-rated sales of services;
    • Processing, manufacturing or repacking of goods for other persons doing business outside the Philippines which goods are subsequently exported;
    • Services other than those mentioned in letter (a);
    • Effectively zero-rated sales of services;
    • Services rendered to persons engaged in international shipping or air transport operations;
    • Services performed by subcontractors and/or contractors in processing, converting, or manufacturing goods for an enterprise whose export sales exceed 70% of total annual production;
    • Transport of passengers and cargoes by domestic air or sea carriers from the Phil. to a foreign country; and
    • Sale of power or fuel generated through renewable sources of energy such as biomass, solar, wind, hydropower, geothermal, ocean energy and other emerging energy sources using technologies such as fuel cells and hydrogen fuels.

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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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