Jing Jing E.

Garrido

BSA 2B

Business Taxation

VALUE ADDED TAX

(Summary)

VAT is a tax on a value added by every seller to the purchase price or cost in the sale of the property,
goods and services in the ordinary course of business as well as on the importation of goods into the
Philippines whether for personal or business use. As a rule, sale of goods or services made in the
ordinary course of business are subject to VAT, unless tax exempt. There are sale that is exempt for VAT,
but still subject to other percentage taxes exempt those transactions made for subsistence or livelihood.