- The Ease of Paying Taxes (EOPT) Act has brought changes to the tax system
- The definition of “gross sales” for VAT purposes on sales of services has been modified by the EOPT
- The EOPT excludes amounts earmarked for payment to third parties or received as reimbursements for payment on behalf of another from the VAT base
- This exclusion is not new and has been part of the VAT system, supported by old court decisions
- Reimbursement of expenses has been considered as a return of capital and not subject to tax in many cases
Source: businessmirror.com.ph
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
Latest Posts in "Philippines"
- Philippine Court Clarifies Input VAT Refunds for Zero-Rated Sales to PEZA Entities
- Philippines Maintains Digital VAT Despite Trump’s Tariff Threats on American Tech Giants
- Advocacy Group Urges Complete Removal of VAT to Reduce Rising Production Costs
- Philippine BIR Clarifies Book Registration Options for New Businesses in 2025
- Philippine BIR Updates VAT Zero-Rating Requirements for RBEs’ Local Purchases
