the total price, excluding VAT, agreed upon for one or more assets acquired and not on the payments actually made during the calendar month.
-B-
Business. Regular conduct of activity which occupies the time, labor, and efforts of men for the purpose of deriving profit as a means or source of livelihood. Business Tax. Taxes imposed upon onerous transfers such as sale, barter, exchange or importation.
-C-
Capital goods or properties. Refers to goods or properties with estimated useful life greater than one (1) year and which are treated as depreciable assets under Sec. 34(F) of the NIRC, used directly or indirectly in the production of sale of taxable goods or services. Constructive Receipt. Occurs when the money consideration or its equivalent is placed at the control of the person who rendered the service without restrictions by the payor. Creditable Input Tax. Any input tax on transactions evidenced by a VAT invoice or official receipt issued by a VAT-registered person and creditable against output tax. Cross Border Doctrine. No VAT shall be imposed to form part of the cost of the goods destined for consumption outside the territorial border of the taxing authority.
-E-
Excise Tax. A tax imposed on goods manufactured or produced in the Philippines for domestic sales or consumption or for any other disposition, and goods imported.
-F-
For subsistence or livelihood. Any business pursued by an individual where the aggregate gross sale or receipts do not exceed P100,000 during any 12-month period. Foreign Currency Denominated Sale. Means the sale to a non-resident of goods, except those mentioned in Secs. 149 and 150 of the NIRC, assembled or manufactured in the Philippines for delivery to a resident in the Philippines, paid for in acceptable foreign currency and accounted for in accordance with the rules and regulations of the BSP. -G-
Gross Selling Price. Means the total amount of money or its equivalent which the purchaser pays or is obligated to pay to the seller in consideration of the sale, barter or exchange of the goods or properties, excluding VAT.
-I-
Importer. Refers to any person who brings goods into the Philippines, whether or not made in the course of his trade or business. In the course of Trade or Business. Means the regular conductor pursuit of a commercial or an economic activity, including transactions incidental thereto, by any person regardless of whether or not the person engaged therein is a non-stock, non- profit private organization or government entity. Initial Payments. Pertain to all payments which the seller receives on or before the execution of the instrument of sale, including cash or property received, other than the purchasers evidence of indebtedness, during the calendar year when the real property was sold. Input Tax. The VAT due from or paid by a VAT-registered person in the course of his trade or business on importation of goods or local purchases of goods, or services, including lease or use of property, from a VAT-registered person. (Sec. 110A, NIRC)
-M-
Mixed Business Transactions. Refer to business dealings of a VAT-registered person engaged in a combination of sales subject to VAT, Zero-rated VAT, and VAT exempt transactions.
-O-
Output Tax. The VAT due on the sale or lease of taxable goods or properties or services by any person registered or required to register under VAT. (Sec. 110A, NIRC)
-P-
Percentage Tax. It is a tax imposed on sale, barter, exchange or importation of goods or sale of services based upon gross sales, value in money or receipts derived by the manufacturer, producer, importer, or seller measured by certain percentage of the gross selling price or receipt. Processing. Means pasteurization, canning, and activities which through physical or chemical process alter the exterior texture or form or inner substance of a product in such a manner as to prepare it for special use to which it could not have been put in its original form or condition.
-R-
Residential Unit. Refer to apartments and houses and lots used for residential purposes, and buildings or parts or units thereof used solely as dwelling places except motels, motel rooms, hotels, hotel rooms, lodging houses, inns, and pension houses.
-S-
Sale on Deferred Payment. A sale which has initial payments exceeding twenty-five percent (25%) of the gross selling price. Sale on Installment Plan. A sale which has initial payments not exceeding twenty- five percent (25%) of the gross selling price. Standard Input Tax. Input tax attributable to VAT sales to the Government not creditable against output tax on sales to non-Government entities. Summary List of Sales/Purchases. Required to be submitted by all persons liable for VAT such as manufacturers, service-providers, among others.
-T-
Technical Importation. Sale of goods by PEZA registered enterprise to a buyer from the customs territory. Such buyer shall be treated as an importer thereof and shall be imposed with the corresponding import taxes.
-V-
Value Added Tax. It is a tax on consumption levied on the sale, barter, exchange or lease of goods or properties or services in the Philippines and on importation of goods into the Philippines. VAT Invoice. Issued by a VAT-registered person for every sale, barter, or exchange of goods or properties. VAT Official Receipt. Issued by a VAT- registered person for every lease of goods or properties and for every sale, barter or exchange of services. VAT-Exempt Person. Refers to any person who is not liable to pay VAT. VAT-Exempt Transactions. Refer to the sale of goods or properties and/or services and the use or lease of properties that is not subject to VAT (output tax) and the seller is not allowed any tax credit of VAT (input tax) on purchases. VAT-Registered Person. Refers to a VAT person who is registered in accordance with the law or who opted to be registered as a VAT person. VAT-Registrable Person. Refers to any person who is required to register but failed to do so.
-Z-
Zero-rated sales. Sales which result to zero (0) output tax since the tax rate applied to the tax base is zero percent (0%).