- 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.
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