- The EOPT Act, effective January 2024, requires all taxpayers to use the accrual basis for VAT reporting, affecting both goods and service providers.
- Service providers now pay output VAT upon accrual, not collection, often advancing VAT payments before receiving payment from clients.
- Taxpayers can recover output VAT on uncollected receivables by deducting it in the next quarter after the agreed payment period lapses, provided the payment terms are documented.
- Several conditions must be met for output VAT credit, including proper documentation, reporting, and ensuring the VAT was not claimed as a bad debt deduction.
- When a seller claims output VAT credit, the buyer cannot claim the corresponding input VAT; sellers must notify buyers by stamping invoices and providing documentation.
Source: bdblaw.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.
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