Implementation of 7 5 vat begins february 1 minister
You're referring to the implementation of the 7.5% Value-Added Tax (VAT) in the Philippines, which was announced by the Department of Finance (DOF) and the Bureau of Internal Revenue (BIR) on February 1, 2018.
Here are the key details:
Effective Date: February 1, 2018
Rate: 7.5% Value-Added Tax (VAT)
Scope: The 7.5% VAT will apply to all transactions involving the sale of goods and services, including:
- Domestic sales
- Importations
- Exportations
- Services rendered
Exemptions: Certain goods and services are exempt from the 7.5% VAT, including:
- Basic necessities (e.g., rice, bread, milk, and other essential food items)
- Medicinal products
- Educational services
- Healthcare services
- Government services
Zero-Rated Goods and Services: Certain goods and services are zero-rated, meaning they are subject to a 0% VAT rate, including:
- Exported goods
- International transportation services
- Insurance services
- Financial services
Registration: Businesses that are required to register for VAT purposes must file their registration with the BIR within 30 days from the date of issuance of the registration certificate.
Filing and Payment: VAT returns must be filed and paid on a quarterly basis, with the first quarter deadline set on May 28, 2018.
Penalties: Failure to register, file, or pay VAT may result in penalties, fines, and even criminal charges.
The implementation of the 7.5% VAT aims to increase government revenue and help fund the country's infrastructure development projects.