I'm Giancarlo Enrico S. Pozon, a Wushu instructor, investor and Barrister... That's right, Barrister; I graduated from law school and took the Bar Exams, now I'm waiting for the results. I created this blog to make Philippine Law easy to understand for the average person. It's all about free legal advice. There are many law blogs. But the problem is that many of them are written for lawyers and law students. They use words that can't be understood by ordinary people.
Many lawyers, judges and law students consider themselves as superior to most human beings because of their knowledge of the law. It bothers me since the law is supposed to serve society. Since the law is meant to serve society as a whole, it is important that is must be understood by everybody.
This does not mean that we should all become lawyers. It means that although law is a highly specialized profession, the first duty of everybody in this profession is to make the law understandable to all; that's why all these articles are free legal advice.
Like I said, this blog is about law -but it's for the ordinary people, not the lawyers. It's for the ordinary folk so they will know what is good and bad for them, and that making them aware of the law will help us all improve society as a whole. This is free legal advice for everybody!
I trust you've by now read my post on Value Added Tax. So what is VAT? Well, basically it's a tax imposed on the gross selling price or gross receipt from a sale, barter or exchange of goods/property and rendering services in the normal course of business. This includes importation.
Gross Receipts & Gross Selling Price
Gross receipts refer to the total amount of money or its equivalent representing the contract price, compensation, service fee, rental or royalty, including the amount charged for materials, supplies, deposits and advance payments actually or constructively received during the taxable year (not including VAT.)
Gross selling price is the total amount of money or its equivalent the buyer pays or is obligated to pay for the sale, barter or exchange and includes any excise tax except VAT.
So basically, VAT is an addition to the gross selling price or gross receipts.
Gross selling price is the total amount of money or its equivalent the buyer pays or is obligated to pay for the sale, barter or exchange and includes any excise tax except VAT.
So basically, VAT is an addition to the gross selling price or gross receipts.
Goods subject to VAT cover all tangible and intangible objects that have monetary value and include the following:
1.) Real property for sale or lease in the normal course of business
2.) Right or privilege to use a patent, copyright, design/model, plan, secret formula/process, goodwill, trademark, trade brand, or other similar property or right
3.) Right or privilege to use any industrial, commercial or scientific equipment in the Philippines
4.) Right or privilege to use movie films, tapes, discs and tapes
5.) Radio, television, satellite transmission and cable transmission
Scope of Sale/exchange of Services (the list is not exclusive.) Once again, go back to the first VAT post to make the connection. These are all subject to VAT. Note that the franchises mentioned here are government, not private, franchises.
1.) Professionals
2.) Construction contractors
3.) Brokers
4.) Lessors or distributors of cinema films
5.) Persons engaged in milling, processing, manufacturing or repacking goods for others
6.) Operators/keepers of hotels, inns, motels, rest-houses, pension houses, lodges and resorts
7.) Operators of refreshment parlors, restaurants, cafes and other eating places, including clubs and caterers
8.) Dealers in securities
9.) Lending investors
10.) Common air and sea carriers, relative to the transport of passengers and cargo within the Philippines
11.) Common land carriers, relative to the transport of cargo (the gross receipts of land carriers are subject to the percentage tax on domestic carriers)
12.) Sale of electricity by generation, transmission and distribution companies
13.) Services of franchise grantees of electric utilities, telephone, telegraph, radio and television broadcasting and all other franchise grantees (except radio ant television broadcasting companies with annual gross receipts of Php10,000,000 or less, and electric, gas and water utilities)
14.) Non-life insurance companies (except their crop insurances) including surety, fidelity, indemnity and bonding companies
15.) Lessors of rights over intangibles
16.) Lessors of rights over any industrial, commercial or scientific equipment
17.) Suppliers of scientific, technical, industrial or commercial knowledge or information
18.) Suppliers of any assistance in nos 16 and 17
19.) Non-resident person or his agent supplying services on any brand, machinery or other apparatus bought from him
20.) Supplier of technical advice, assistance or services
21.) Lessor of motion picture films, tapes, discs and films
22.) Lessor of rights over radio, television, satellite transmission and cable television time
23.) Similar services regardless of whether or not their performance requires the use of physical or mental faculties
Not very encouraging, huh?
2.) Right or privilege to use a patent, copyright, design/model, plan, secret formula/process, goodwill, trademark, trade brand, or other similar property or right
3.) Right or privilege to use any industrial, commercial or scientific equipment in the Philippines
4.) Right or privilege to use movie films, tapes, discs and tapes
5.) Radio, television, satellite transmission and cable transmission
Scope of Sale/exchange of Services (the list is not exclusive.) Once again, go back to the first VAT post to make the connection. These are all subject to VAT. Note that the franchises mentioned here are government, not private, franchises.
1.) Professionals
2.) Construction contractors
3.) Brokers
4.) Lessors or distributors of cinema films
5.) Persons engaged in milling, processing, manufacturing or repacking goods for others
6.) Operators/keepers of hotels, inns, motels, rest-houses, pension houses, lodges and resorts
7.) Operators of refreshment parlors, restaurants, cafes and other eating places, including clubs and caterers
8.) Dealers in securities
9.) Lending investors
10.) Common air and sea carriers, relative to the transport of passengers and cargo within the Philippines
11.) Common land carriers, relative to the transport of cargo (the gross receipts of land carriers are subject to the percentage tax on domestic carriers)
12.) Sale of electricity by generation, transmission and distribution companies
13.) Services of franchise grantees of electric utilities, telephone, telegraph, radio and television broadcasting and all other franchise grantees (except radio ant television broadcasting companies with annual gross receipts of Php10,000,000 or less, and electric, gas and water utilities)
14.) Non-life insurance companies (except their crop insurances) including surety, fidelity, indemnity and bonding companies
15.) Lessors of rights over intangibles
16.) Lessors of rights over any industrial, commercial or scientific equipment
17.) Suppliers of scientific, technical, industrial or commercial knowledge or information
18.) Suppliers of any assistance in nos 16 and 17
19.) Non-resident person or his agent supplying services on any brand, machinery or other apparatus bought from him
20.) Supplier of technical advice, assistance or services
21.) Lessor of motion picture films, tapes, discs and films
22.) Lessor of rights over radio, television, satellite transmission and cable television time
23.) Similar services regardless of whether or not their performance requires the use of physical or mental faculties
Not very encouraging, huh?
0 comments:
Post a Comment