Tax Resources PH icon

TAX RESOURCES PH

Tax resources for Filipinos

RMC No. 22-2006: Clarifies certain issues relating to the implementation of the increase in the VAT rate from 10% to 12% on the sale of goods pursuant to RA No. 9337

Files
Download this file

Summary

RMC No. 22-2006 clarifies issues on applying the VAT rate increase from 10% to 12% to the sale of goods under Republic Act No. 9337.

CollapseExpand

Key points

  1. Basis of VAT. For sales of goods, VAT is imposed on the gross sales for a given taxable period.
  2. Sales before February 1, 2006. Consummated sales of goods prior to February 1, 2006 are subject to 10% VAT. Sale transactions entered into on or after that date are subject to 12% VAT.
  3. Delivery or invoice on or after February 1, 2006. A sale entered into before February 1, 2006 and already booked as a sale is treated as a sale on or after that date if the delivery of goods and the issuance or dating of the sales invoice took place on or after February 1, 2006. It is then subject to the 12% VAT rate.

Who is affected

  • Sellers of goods

Deadlines and effectivity

  • 10% VAT for consummated sales prior to February 1, 2006
  • 12% VAT for sales on or after February 1, 2006

Summary by Tax Resources PH. It is not a substitute for the full text of the issuance or professional advice.

Copies of BIR issuances are hosted here for reference. For the official version, check bir.gov.ph. Summaries by Tax Resources PH are not a substitute for the full text or professional advice.