Transitional Input Vat

Transitional Input VAT -an initial input tax credit equivalent to 2% of the beginning inventory of goods, materials, or supplies or the actual VAT paid thereon whichever is higher. -based on vatable beginning inventories.

Ilo-ilo General Merchandise, Inc. exceeded the VAT threshold in June 2018. It had the following inventory of goods at the start of July 2018: Frozen meat, eggs and dried fish 40,000 Fruits and vegetables 50,000 Grocery items (all from VAT suppliers) 22,400 Appliances (from non-VAT suppliers) 30,000 Total beginning Inventory 142,400

Presumptive Input VAT -sardines, mackerel and milk and in the manufacturing of refined sugar, cooking oil and packed noodle based instant meals, shall be allowed a presumptive input tax equivalent to 4% of their purchases of primary agricultural products.

Sardinas Corporation processes hot chili-flavored sardines. During the month, Sardinas purchased the following ingredients for the processing of canned sardines. Cost Input VAT Fresh Sardines 800,000 Hot Chili 50,000 Tomatoes 400,000 Ordinary Salt 20,000 Tin Can 120,000 14,400 Labels 60,000 7,200

Standard Input VAT -sellers to the government, instrumentalities or agencies including GOCCs can claim an input equivalent to 7% of their sale as input VAT.

A VAT taxpayer made a P100,000 sales to the government invoiced at P112,000 inclusive of output VAT. The taxpayer purchased the same for P90,000 exclusive of P10,800 input VAT.

Input VAT Carry Over -is the excess of the input VAT over the output VAT in a particular month or quarter.

The following data relates to the regular sale of a VAT taxpayer: Output Vat Input Vat Prior quarter 360,000 400,000 Current quarter: 1st month 160,000 100,000 2nd month 150,000 160,000 3rd month 170,000 65,000 480,000 325,000

Input VAT on Capital Goods If the monthly aggregate acquisition cost of depreciable goods: • Does not exceed 1,000,000- input VAT is claimable in the month of purchase • Exceeds 1,000,000- input VAT is deferred and amortized over the useful life in months or 60 months, whichever is shorter.

Mr. Alabel, a VAT taxpayer, made the following purchases in July 2014: Purchases Price Input Vat Goods for sale 800,000 96,000 Car for personal use 1,000,000 120,000 Comp. (business use) 250,000 30,000 Machineries (bus. use) 750,000 90,000 The useful life of computers is 3 years while the machineries are expected to last for 7 years.

SAMPLE PROBLEMS

Millenium, a sardines canning company, had the ff. inputs for its manufacturing operations during a month: Tin cans, exclusive of VAT 80,000 Tomatoes 150,000 Sardines 200,000 Labels, exclusive of VAT 20,000 TOTAL 450,000 Required: What is the presumptive input VAT allowable to Sardinia?

Mr. Mantica is a VAT registered manufacturer of cooking oil. During a month, it made the ff. purchases: Raw coconut (to be processed into copra) 300,000 Copra from farmers 450,000 Other supplies in the manufacture of cooking oil 120,000 TOTAL 870,000

Required: What is the presumptive input VAT?

Pampam Company, a VAT-registered taxpayer, purchased the following capital goods in March 2014: CAPITAL GOODS PURCHASE PRICE INPUT VAT Equipment P 600,000.00 P 72,000.00 Truck 700,000.00 84,000.00 TOTAL P1,300,000.00 P 156,000.00 Estimated useful life of equipment and truck are 4 and 10 years accordingly. Required: Compute the Input VAT on purchase of capital goods.

Misamis Company sold to the government goods it purchased for 400,000 for 550,000. Required: Compute the standard input VAT.

Abenson Builders won a government contract to build a bridge at a contract price of 80,000,000. During a month, it had the following expenditures in connection with the contract: Construction Supplies Employee Salaries Depreciation Expense

P2,500,000 500,000 300,000

Abenson billed the government P4,000,000 for project completion which the government settled in the same month. Required: What is the Standard Input Vat?

A VAT taxpayer had the following data in a quarter: Input VAT carry-over,prior quarter P 20,000 Output Vat 280,000 Input VAT during the quarter 310,000 VAT paid in during the quarter 10,000 Required: What is the input VAT carry-over at the end of the current quarter?

Him Corporation had the following details of output VAT and input VAT month: Output VAT P 340,000 Input Vat on regular sales 300,000 Input VAT on zero rated sales 120,000 Input VAT on exempt sales 60,000 Input VAT claimed as tax refund 50,000 Required: What is the input VAT carry-over at the end of the month?

Dino Rado, opted to be registered as a VAT taxpayer effective the third quarter of 2018. He had the following analysis of beginning inventory for the month of July 2018: Purchases from non-VAT suppliers 210,000 Purchases from VAT suppliers, Inclusive of VAT 22,400 Total 232,400 Required: What is the transitional input VAT?

A taxpayer who is transitioning to the VAT system had the ff. inventories upon exceeding the VAT threshold: Inventory of unprocessed agricultural food products 30,000 Inventory of processed goods 170,000 Inventory of non-food goods 210,000 TOTAL 410,000 The taxpayer acquired all the goods from non-VAT suppliers. Required: What is the transitional input VAT?