4 months The business of VAT Manilatimes |Biz
EUNEY MARIE MATA-PEREZThere is a specific rationale behind the imposition of value-added tax (VAT). VAT was not intended to be imposed on every transaction or transfer. Its imposition must bear some relevance to the taxpayer’s role or link in the production chain. While ultimately it is a tax on consumption (since the final consumers bear the entire VAT), VAT is actually assessed on various levels of the production chain and imposed based on the “value-added” or contribution by the taxpayer in the production chain. The absence or presence of profit is immaterial. Our Tax Code (Republic Act No. 8424, ... more