7/17/2019 Value Added Tax

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VALUE ADDED TAX

Persons liable for VAT

1. Any person who, in the course of trade or business,

sells, barters, echan!es, leases !oods or properties". Any person who renders ser#ices$. Any person who i%ports !oods&. Any person who is en!a!ed in epropriation'. (er#ices rendered in the Philippines by nonresident

forei!n persons shall be considered as bein!

rendered in the course of trade or business

Dee%ed (ale) (ub*ect to VAT

1. Transfer, use or consu%ption not in the course of

business of !oods or properties ori!inally intended

for sale or for use in the course of business". Distribution or transfer to)

a. (hareholders or in#estors as share in the pro+ts

of the VAT re!istered personsb. reditors in pay%ent of debt -dacion en pa!o

$. onsi!n%ent of !oods if actual sale is not %ade

within /0 days followin! the date such !oods were

consi!ned.&. etire%ent fro% or cessation of business with

respect to in#entories of taable !oods eistin! as ofsuch retire%ent or cessation.