Matibay Na Mura Pa, Inc. a VAT registered domestic corporation is engaged in the production of Personnel Protective Equipment ( PPE).

It did not apply for effective zero rating registration. Records show the following:

APRIL 2020 (MONTHLY) QUARTERLY

Cash Sale to San Miguel Corporation 5,000,000.00 Total Quarter Sales
Sale on Yakult ( Resident Foreign Company)( $80k X P 52) 4,160,000.00 Apr-20 Cash Sale to San Miguel Corporation 5,000,000.00
Total Sales 9,160,000.00 Sale on Yakult ( Resident Foreign Company)( $80k X P 52) 4,160,000.00
Total Sales 9,160,000.00
Sales exclusive of VAT ( 9,160,000/1.12 ) 8,178,571.43
Output VAT ( 981,428.57 X 12%) 981,428.57 May-20 Sales to Giordano-Hong kong Company $150,000 * 54 8,100,000.00
Sale to Guess USA, Foreign RTW $ 80,000 * 54 5,400,000.00
Purchases on Account 500,000.00 Sales to Grab Phils Inc 1,000,000.00
Cash purchases 100,000.00 Total Sales 14,500,000.00
Importation ( $ 10,000 X P52 ) 520,000.00
Input VAT ( 520,000 X 12% 62,400.00 Jun-20 Sales to Levi's Philippines, Inc 8,000,000.00
Purchases on importation 582,400.00 Sale to Gardenia Inc, a PEZA registered entity 2,550,000.00
Total Purchases 1,182,400.00 Total Sales 10,550,000.00

Purchases exclusive of VAT ( 1,182,400 / 1.12 ) 1,055,714.29 Quarterly Sales inclusive of VAT 18,160,000.00
Input VAT ( 1,055,714.29 X 12% ) 126,685.71 Quarterly Sales exclusive of VAT (18,160,000.00/1.12) 16,214,285.71
VAT Payable ( 981,428.57-126,685.71 ) 854,742.86 Output VAT (16,214,285.71 X 12%), 1,945,714.29
Less: Previous quarter excess input VAT 500,000.00
Vat Payable 354,742.86 Total Quarterly Purchases
Apr-20 Purchases on Account 500,000.00
Cash purchases 100,000.00
SUMMARY Importation ( $ 10,000 X P52 ) 520,000.00
1. VAT Payable / Excess Input VAT 354,742.86 Input VAT ( 520,000 X 12% 62,400.00
2. Output VAT 981,428.57 Purchases on importation 582,400.00
3. Input VAT 126,685.71 Total Purchases 1,182,400.00
4. Sales to be reported for income tax purposes 8,178,571.43
5. Purchases Exclusive of VAT 1,055,714.29 May-20 Robinsons- local 250,000.00
Purchase on account 200,000.00
Australia -importation ( $50,000 X P54) 2,700,000.00
MAY 2020 (MONTHLY) Input VAT on Importation 324,000.00
Sales Total purchases on importation-Australia 3,024,000.00
Sales to Giordano-Hong kong Company $150,000 * 54 8,100,000.00 Purchases- YKK PEZA ( $10,000 X P54) 540,000.00
Sale to Guess USA, Foreign RTW $ 80,000 * 54 5,400,000.00 Input VAT Purchases from YKK- PEZA 64,800.00
Sales to Grab Phils Inc 1,000,000.00 Total importation-YKK 604,800.00
Total Sales 14,500,000.00 Total Purchases 4,078,800.00

Sales exclusive of VAT ( 1,000,000 /1.12 ) 892,857.14 Jun-20 Purchases LOCAL in realation to Gardenia Sale 1,000,000.00
Output VAT (892,857.14 X 12%) 107,142.86 Purchases LOCAL 5,000,000.00
Total Purchases 6,000,000.00
Purchases
Robinsons- local 250,000.00 Quarterly Purchases inclusive of VAT 10,261,200.00
Purchase on account 200,000.00 Quarterly Puchases exclusive of VAT (10,261,200.00 /1.12) 9,161,785.71
Australia -importation ( $50,000 X P54) 2,700,000.00 Input VAT ( (9,161,785.71.71 X 12%) 1,099,414.29
Input VAT on Importation 324,000.00
Total purchases on importation-Australia 3,024,000.00 VAT payable ( 1,945,714.29 - 1,099,414.29) 846,300.00
Purchases- YKK PEZA ( $10,000 X P54) 540,000.00 Less: Excess input vat credit 500,000.00
Input VAT Purchases from YKK- PEZA 64,800.00 Less: VAT payment for April 354,742.86
Total importation-YKK 604,800.00 VAT Creditable/Excess Input VAT (8,442.86)
Total Purchases 4,078,800.00

Puchases exclusive of VAT (4,078,000 /1.12) 3,641,785.71

Input VAT ( (3,641,785.71 X 12%) 437,014.29 SUMMARY
1. VAT Payable / Excess Input VAT (8,442.86)
VAT payable ( 107,142.86-437,014.29) (329,871.43) 2. Output VAT 1,945,714.29
Less: Excess input vat credit - 3. Input VAT 1,099,414.29
VAT Creditable/Excess Input VAT (329,871.43) 4. Sales to be reported for income tax purposes 32,264,285.71
5. Purchases Exclusive of VAT 9,161,785.71

SUMMARY
1. VAT Payable / Excess Input VAT (329,871.43)
2. Output VAT 107,142.86
3. Input VAT 437,014.29
4. Sales to be reported for income tax purposes 14,392,857.14
5. Purchases Exclusive of VAT 3,641,785.71