Value Added Tax Review Flashcards

A collection of vocabulary flashcards designed to help students review key terms and definitions related to Value Added Tax (VAT) for exam preparation.

VAT Exemption

Certain transactions that are not subject to value-added tax.

Lessor Exemption

A lessor of residential units is exempt from VAT if annual gross receipts do not exceed P3,000,000 or monthly rental does not exceed P15,000.

Zero Percent VAT Rate

Export sales by a VAT-registered person are subject to zero percent (0%) VAT.

Output Vat on Uncollected Receivables

Sellers can deduct output VAT related to uncollected receivables from their output VAT on the next quarter.

Transaction Deemed Sale

Transactions not considered sales but are treated as sales for VAT purposes.

Creditable Input Tax

The input tax that can be credited against output tax.

Tax Filing Deadlines

Quarterly VAT returns must be filed on or before the 25th day from the end of each quarter.

Mixed Transactions

Transactions involving both VAT and non-VAT sales, requiring separate invoicing.

Transition Input Tax

A tax credit available to taxpayers transitioning to VAT or those whose transactions became subject to VAT.

Freelancers and Professionals

Subject to VAT if their gross sales exceed P3,000,000.

Non-stock, Non-profit Organizations

Not subject to VAT if income from sales is used for non-profit purposes.

Property Lease VAT

Leasing of property is subject to VAT if executed in the Philippines.

Computation of VAT Due

VAT on sales less input taxes equals VAT payable or excess to be refunded.

Zero-Rated Sale Definition

Sales that are subject to a VAT rate of zero percent, typically for exports.

VAT on Importation

All importations are subject to VAT unless specifically exempt.