Computation of output VAT

      Without

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.

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 http://eepurl.com/coJBmf

CPA Mentor,

JONATHAN RUIZ CPA, MIB

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About PAM Academy Founder

Newbie Mentor and one of the influential author in the Philippines setting. His also the founder of PAM Academy and Developer of PAM PSE TRACKER application.
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