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RDO 99, Malaybalay City, Bukidnon

Tax Updates 2012

Major Tax Updates

Income Tax Forms
Invoicing Require ments

VAT Threshold

SLSP

Increase in Value-Added Tax Threshold

RR 16,2011,RR 3-2012

Exemption from VAT under Section 109 (V) of the Tax Code, as amended

Sale or lease of goods or properties or the performance of goods or the performance of services other than transactions mentioned in the preceding paragraphs, the gross annual sales and/or purchases do not exceed One Million Nine Hundred Nineteen Thousand Five Hundred Pesos (P 1,919,500.00)

Section 109 (V): Sale or lease of goods or properties and Performance of Services

Section 109 (P) and 109 (Q)

Section Amount in Pesos (2005) Adjusted threshold amounts

Section 109 (P) sale of residential Lot

1,500,000

1,919,500

Section 109 (P) sale of residential house and lot or other residential dwellings Section 109 (Q) lease of residential unit

2,500,000

3,199,200

10,000

12,800

Rules in determination of threshold

Husband and wife are considered separate taxpayers Include the aggregate gross receipts from all taxable lines of activity and/or all establishments (head office/ branches) VAT-Exempt Sales shall not be included in determining the threshold

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SEPARATE INVOICING FOR VAT TAXPAYERS

Revenue Regulations 18-2011, Section 237 of the Tax Code, as amended.

Basic Invoicing Requirements Issue sequentially Official Receipt (OR) for performance of service Invoice for sale of goods Each OR/Invoice issued shall indicate the name and address of the client, date of transaction, nature of service rendered and the amount.

Basic Invoicing Requirements The OR shall be accomplished . at least in duplicate The duplicate retained & preserved in place of business for 3 years from close of taxable year.

Sample of Non-VAT receipt

Proper Invoicing and receipting of output tax (RR 182011)

Reiterates Sec. 237 of the Tax Code that VAT-registered taxpayers should separately bill the VAT.
The amount shall be shown as a separate item in the invoice or receipt

Ex: If the amount charged is P560.00, it shall be presented in the following manner:
Professional Fee (P560.00/112%) Add:12% VAT (12% of P500.00) Total Amount charged P 500.00 60.00 P 560.00

Its not just about the visuals, but strengthening

Wrong

Its not Particulars

Service Fee
12% VAT Total

just about the visuals, but strengthening

YOUR MESSAGE.
134.90 P1,259.00

P1,124.10

Correct

Penalty for non-compliance

for each act or omission, be punished by a fine of not less than P1,000.00 but not more than P50,000.00

and
suffer imprisonment of not less than two (2) years but not more than four (4) years.

Importance of asking receipts/invoices

To support input tax claims
Will facilitate audit trail To ascertain that sales transactions are properly recorded Corresponding taxes are paid

To support business purchases/expenses

Mandatory submission of SLSP for all VAT taxpayers

Revenue Regulations 16-2005, Revenue Regulations 1-2012

RR 1-2012: submission of quarterly SLSP

(1) Persons Required to Submit Summary List of Sales.---All persons liable for VAT such as manufacturers, wholesalers, service providers, among others are required to submit Summary List of Sales . (2) Persons Required to Submit Summary List of Purchases.---All persons liable for VAT such as manufactures, service providers, among others are required to file Summary List of Purchases.

Summary List of Sales information

Regular Customer s

Casual Customers of 100K or more

Casual Customers

Regular Customers( engaged in business/profession & transacted at least six transactions regardless of amount in PY or CY) and casual customers with gross purchases of 100,000 or more in the present/current year

Information needed to be reflected in SLS

1. BIR-registered name of the buyer who is engaged in business/exercise or profession; 2. TIN of the buyer; 3. Exempt Sales; 4. Zero-rated sales; 5. Sales subject to VAT (exclusive of VAT); 6. Sales Subject to Final VAT; 7. Output Tax (VAT on sales subject to 12%)

Information needed to be reflected in SLP

1. BIR-registered name of the seller/supplier/serviceprovider; 2. TIN of the seller; 3. Exempt Purchases; 4. Zero-rated Purchases; 5. Purchases subject to VAT services,on capital goods,goods other than capital goods (exclusive of VAT) Purchases Subject to Final VAT withheld 6. Input tax (Non Creditable & Creditable)

SLSP Submission rules

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Submitted through CD on or before 25th day of the month following the close of taxable quarter Format prescribed under Revenue Regulations 16-2005 (Excel,Taxpayers own program, Data entry module) Non-submission is subject to penalty

STOP FILER CASES

 Can be detected by our system (Integrated Tax System- Case Monitoring) Such stop-filer case shall remain open until the corresponding return is duly filed and paid including penalties.

by: Maricel D. Arthur,CPA

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