Curva de aprendizaje
11. Costeo por órdenes y costeo por procesos
Rate: 12% VAT beginning 1 February 2006 [RMC No. 7-06]
Transactions: Every sale, barter or exchange, or transactions “deemed sale” of taxable goods or
properties (RR 16-2005)
Basis: Gross selling price or gross value in
money of the goods or properties sold,
bartered or exchanged.
Who Pays: Paid by SELLER/TRANSFEROR. (Sec. 106, NIRC)
Goods or properties – all tangible and intangible objects which are capable of pecuniary estimation, including:
(1) Real properties held primarily for sale to customers or held for lease in the ordinary course of trade or business;
(2) The right or the privilege to use patent, copyright, design, or model, plan, secret formula or process, goodwill, trademark, trade brand or other like property or right; (3) The right or the privilege to use in the
Philippines of any industrial, commercial or scientific equipment;
(4) The right or the privilege to use motion picture films, films tapes and discs;
(5) Radio, television, satellite transmission and cable television time.
Requirements
(1) Done in the course of trade or business (w/n profit-oriented): rule of regularity + incidental thereto (including isolated transactions)
109 (2) Gross sales or receipts for the past 12
months or the next 12 months > 1,919,500php
(3) OR there are reasonable grounds to believe that gross sales or receipts for the past 12 months or the next 12 months will exceed 1,919,500php.
Additional Requirements depending on the nature of property:
Goods/Personal Properties
(1) Actual/deemed sale for a valuable consideration
(2) for use or consumption in the Phil (regardless of the payment arrangements) (3) not exempt from VAT (NIRC, special law,
special agreement) Real Properties (RP) 17:
(1) Seller (w/n natural) executes contract to SBE of RP
(2) RP is in the Phil
(3) Seller is engaged in sale or exchange of RP or real estate (dealer, developer, lessor) (4) RP is held primarily for sale/lease ICT/B or
an ordinary asset used in T/B as an 17 Casual Sale (Capital Assets) Subject to CGT (6%) Regular Sales (Ordinary Assets) Commercial Property (Sale/Lease ) Subject to 12% VAT Residential Units (Lease)
If monthly rental ≤ 12,800 = VAT and OPT-exempt
If monthly rental > 12,800 but aggregate annual rentals ≤1,919,500 = subject to OPT
If monthly rental > 12,800 and aggregate annual rentals > 1,919,500 = subject to VAT
Residential
Lot If SP > 1,919,500.00 = subject to VAT IF SP ≤ 1,919,500.00 = VAT-exempt Residential
House and Lot
If SP > 3,199,200.00 = subject to VAT IF SP ≤ 3,199,200.00 = VAT-exempt
incident to his vatable activity (NOT a capital asset)
(5) not exempt from VAT (NIRC, special law, special agreement)
Gross (Sales) Selling Price (GSP): total amount of money or its equivalent which the purchaser pays or is obligated to pay to the seller in consideration of the sale, barter or exchange of the goods or properties, excluding the VAT. The excise tax, if any, on such goods or properties shall form part of the gross selling price.
General Rule: GSP is the total amount of money paid in consideration of SBEL
Excludes: VAT, sales discounts 18 and, allowances and returns
Includes: Excise tax paid, initial payments19, interests and penalties (if instalment), commission income (if exported), purchase price, charges for packing, delivery and insurance
If goods/personal properties
GSP = amount paid in consideration
IF DEEMED SALE: FMV at the time of the transaction
NB: in retirement/cessation, inventory (raw materials, finished goods, machinery, equipment, furniture, fixture), tax base = whichever is lower,
(1) acquisition cost
(2) current market price of goods If real property,
GSP = amount higher:
(1) consideration stated in the sales document
18 It should be determined at the time of the sale,
indicated in the invoice and granting does not depend on the happening of a future event
19 Initial payments does not include the amount of
mortgage on RP sold (except excess when mortgage exceeds the cost of the property), notes and other evidence on=f indebtedness issued by the purchaser at the time of the sale
110 (2) FMV, whichever is higher of:
(a) Zonal value: FMV as determined by CIR (b) Real Property Tax Value: FMV as determined by provincial & city assessors
IF ON INSTALLMENT (RR16-2005)20:
GSP = down payments received + interests + penalties + other charges – amount of mortgage (paid)
Note:
If zonal/FMV, tax base =
𝐴𝑐𝑡𝑢𝑎𝑙 𝐶𝑜𝑛𝑠𝑖𝑑𝑒𝑟𝑎𝑡𝑖𝑜𝑛 (𝑒𝑥𝑐𝑙𝑢𝑠𝑖𝑣𝑒 𝑉𝐴𝑇)
𝐴𝑔𝑟𝑒𝑒𝑑 𝐶𝑜𝑛𝑠𝑖𝑑𝑒𝑟𝑎𝑡𝑖𝑜𝑛 (𝑒𝑥𝑐𝑙𝑢𝑠𝑖𝑣𝑒 𝑉𝐴𝑇) 𝑥 𝑧𝑜𝑛𝑎𝑙 𝑣𝑎𝑙𝑢𝑒 𝑜𝑟 𝐹𝑀𝑉, ℎ𝑖𝑔ℎ𝑒𝑟
Upon full collection, if a difference is uncovered because the zonal value or market value at the date of sale is higher than the total receipts or collections based on the agreed consideration, the additional VAT shall be paid accordingly (RMC 03-96)
IF DEFERRED21
GSP = entire selling price or zonal/FMV, whichever is higher
Thus, subsequent receipt of unpaid balance is NOT subject to VAT
Note: CIR has the power to determine the appropriate tax base in 1) SBE in deemed sales
20 Considered instalment when the initial payment is less
than or equal to 25% of GSP. Taxable only on the payment actually or constructively received.
Initial payments – payment/payments which the seller receives before or upon execution of the instrument of sale and payments which he expects or is scheduled to receive in cash or property during the year when the sale or disposition of the real property was made.
constructively received during the year of sale.
property sold (except as to the excess when such mortgage exceeds the cost or other basis of the property to the seller) and notes or other evidence of indebtedness issued by the purchaser to the seller at the time of the sale.
21 Considered deferred payment when the initial payment
is more than 25% of GSP. Treated as cash sale and the entire selling price is taxable on the month of sale
and 2) when GSP is unreasonably lower than AMV22
AS REGARDS SALE OF REAL PROPERTY Taxable:
(1) On installment plan
(2) Pre-selling by real estate dealers
(3) Sale of residential lot >P1,919,500 ; or house and lot/other residential dwelling >P3,199,200
(4) Lease of residential units (rental per unit > 12,800/month OR total rental from ALL units>P1,919,500/year)
Not taxable: (Sec. 109 (P)(Q)(V))
(1) Not primarily held for sale or lease in the course of trade or business OR those held for sale or lease in the course of trade or business BUT does not exceed P 1,919,000. (2) Low cost or socialized housing
(3) Residential lot when value does not exceed P1,919,500
(4) House and lot/other residential dwelling < P3,199,200
(5) Lease (rental per unit < 12,800/month and total rental from all units < P1,919,500/ year)
(6) Transmission to a trustee (Except: transmission is deemed sale transaction) GR: Transmission of property to a trustee shall NOT be subject to VAT if the property is to be merely held in trust for the trustor and/or beneficiary.
Exception: However, if the property transferred is originally intended for sale, lease or use in the ordinary course of trade or business AND the transfer constitutes a completed gift, the transfer is subject to VAT as a deemed sale transaction. The transfer is a completed gift if the transferor divests himself absolutely of
22 GSP is unreasonably lower than the actual market
value if it is lower than 30% of AMV of the same goods of the same quantity or quality sold in the immediate locality or the nearest date of sale.
111 control over the property, i.e., irrevocable transfer of corpus and/or irrevocable designation of beneficiary.
7. Transfer to corporation in exchange of shares of stocks (see Sec. 40, NIRC for Tax-free exchange)
8. Advance payment by the lessee
9. Security deposits for lease agreements.23
23 Please take note of the difference between security deposits and those applied to rent.