 RA 10963; January 1, 2018 (TRAIN)

 IRR 13-2018; March 15, 2020

1. General vat-exempt threshold is 3M
2. For low-cost hosting ---- selling price per unit set by HUDCC
3. For socialized housing --- for house and lot 450K --- for lot only 180K
4. For house and lot --- 3,199,200 ----- for lot only ---- 1,919,500
5. If ---- two or adjacent --- residential lots are sold to one buyer --- for the purpose of utilizing the lots as one
residential lot --- the sale shall be exempt from vat --- only if the aggregate value of the lots does not exceed
1,919,500
6. Adjacent residential lots, although covered by separate title and/or separate tax declaration --- when sold to one
and the same buyer --- whether covered by --- one or separate --- deed of conveyance --- shall be presumed as
sale of one residential lot
7. Beginning January 1, 2021 --- the vat exemption shall only apply to the following:
a. Sale of real property ---- not primarily held --- for sale to customer
i. Not primary held --- for lease in the OCTB
b. Sale of real property ---- utilized for social housing
c. Sale of house and lot --- for not more than 2M
8. For lease of residential unit --- 15K per month

P491.) GR: there must be actual sale of GPS in the Philippines – the exceptions are the following:

1. Importation of goods
2. Erroneous issuance of vat – invoice or receipt – for vat exempt sales of GPS
3. Deemed sales of GP

P507.) elements of taxable sales of GP

1. An --- actual or deemed --- sale of GP for VC

2. Undertaken in the OCTB
3. For the UC in the Philippines
4. Not exempted from VAT under the TC, law, or international agreement

P508.) deemed sale:

1. TUC --- not in the OCTB of GP --- originally intended for sale or for use in the OCTB
2. DT --- to shareholders or investors – as share in the profits of the vat-reg persons – or to creditors in payment of
debt
3. Consignment of G, if actual sale is not made within 60 days
4. Retirement from business – with respect to inventories of taxable goods existing

P518.) services of the following persons are subject to vat

1. Construction and service ---- contractor

2. Stock, real estate, commercial, customs, immigration --- brokers
3. Lessor of property whether personal or real
4. Warehousing services
5. Lessor or distributor of --- cinematographic films.

P521.) requisites of taxability of services

1. The service must be – performed or is to be performed – in the OCTB – in the Philippines – except in the case of
service done in the Philippines by non-resident person
2. For VC – actually or constructively – received
3. The service is – not exempt – under the TC, special law, international agreement
P546.) the sale of service must meet all the following essential requisite

1. There is a – sale or exchange – of service ---- or lease of property

2. The service is – performed – or to be performed – in the Philippines
3. The service is – performed – or to be performed – in the OCTB
4. The service is – performed – or to be performed – for a VC – actually or constructively -received
5. The service is – not exempt – under the – TC, special law, international agreement

P593.) a person is entitled to vat refund when

1. The claimed input tax payments are duly supported by vat invoices
2. The claimed input tax payments are directly attributable to zero-rated sales
3. The claimed input taxes were - not applied against any output tax – nor carried over to the succeeding months
4. Both administrative and judicial claims for – refund or tax credit – were filed within the 2-year prescriptive
period

P594.) excess input tax on purchase of real property -- in order that petitioner’s claim for refund may prosper – following
requisites:

1. The applicant must be vat-registered person

2. There be a purchase of land
3. The purchase is substantiated by sufficient evidence
4. The input taxes have not been applied against the output taxes
5. The application for the refund of – unutilized creditable input tax – has been made within 2 years – after the
close of the taxable quarter – when the purchase was made
6. The land was used by the applicant in his vat taxable business

P601.) GP are classified capital goods

1. They have estimated useful life greater than 1 year

2. Treated as depreciable asset
3. Used – directly or indirectly – on the -production or sale – of taxable GS

Property is considered depreciable only if:

1. Used in an OCTB – for the produce of income

2. Subject to exhaustion within a determinable period of time – it has a limited useful life

Local taxation

P931.) fundamental principle

1. Taxation shall be uniform in each local government unit

2. Taxes, fees, charges – shall:
a. Be equitable
b. Be – levied and collected – for public purposes
c. Not to be – unjust, excessive, oppressive, confiscatory
d. Not be contrary to – law, public policy, national economic policy – nor restraint of trade
3. The collection of local – taxes, fees, charges --- shall – in no case – be let to any private person
4. The revenue collected – shall – inure solely to the benefit of --- and subject to disposition by – the local
government unit levying the TFC – unless otherwise provided in the code
5. Is shall be the responsibility of each – local political subdivision – to evolve a – progressive system of taxation

P939.) taxes that may be imposed by provinces – may levy only the following TFC:
 1. Tax on – transfer of – real property ownership
2. Tax on – business of – printing and publication
3. Franchise tax
4. Tax on – sand, gravel, other quarry resources
5. Professional tax
6. Amusement tax
7. Annual fixed tax for every – delivery – truck or van – of manufacturer, producers, wholesaler, dealer, retailer in –
certain product.

P953.) test of a valid ordinance

1. It must not contravene the --- constitution or statute

2. It must not be – unfair or oppressive
3. It must not be – partial or discriminatory
4. It must not – prohibited – but may – regulate – trade
5. It must be – general and consistent – with public policy
6. It must not be – unreasonable

P979.) the – appraisal, assessment, levy, collection --- of real property shall be guided by the following fundamental
principle

1. real property shall – be appraised – at its – current and fair – market value
2. real property shall – be classified – on the bases of its actual use
3. real property shall – assessed – on the bases of a – uniform classification – within each – local political
subdivision
4. the – appraisal, assessment, levy – shall not be let to any – private persons
5. the – appraisal, assessment – shall be equitable

p983.) the following are exempted from payment of the real property tax

1. real property – owned by the RP – or any of its political subdivisions – except when the beneficial use thereof –
has be granted – for consideration – to a taxable person
2. charitable institution, churches, parsonage, convents, appurtenant thereto, mosque, non-profit or religious
cemeteries --- and all – lands, building, improvement --- actually, directly, exclusively – used for -- religious,
charitable, educational – purposes
3. all machineries and equipment that are --- actually, directly, exclusively – used by --- local water districts and
GOCC – engaged in the supply and distribution of – water and/or generation and transmission of electric power
4. all real property owned by --- duly registered cooperatives
5. machinery and equipment – used for – pollution control and environment protection

p995.) the period of prescription within which to collect shall be suspended for the time during:

1. the local treasurer is --- legally prevented from collecting

2. the owner of the property – or the person having legal interest therein – requests for reinvestigation – and
executes a waiver in writing – before the expiration of the period to collect
3. the owner of the property – or the person having legal interest therein --- is out of the country or otherwise
cannot be located