Scribd
Upload
0 views2 pages

Module - Consumption Taxes

The document outlines the rationale and types of consumption taxes, including their differentiation between VAT on importation and business tax. It details various forms of domestic consumption, taxability categories, and the basis for exempt consumption. Additionally, it compares VAT on importation with final withholding VAT and lists types of business taxes.

Uploaded by

puddunannicole488
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
0 views2 pages

Module - Consumption Taxes

The document outlines the rationale and types of consumption taxes, including their differentiation between VAT on importation and business tax. It details various forms of domestic consumption, taxability categories, and the basis for exempt consumption. Additionally, it compares VAT on importation with final withholding VAT and lists types of business taxes.

Uploaded by

puddunannicole488
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd

CONSUMPTION TAXES

RATIONALE OF CONSUMPTION TAXES


1. Savings formation
2. Benefit received theory
3. Wealth redistribution

Types of Consumption
1. Domestic
2. Foreign

Types of Domestic Consumption


1. Sales
2. Importation

Types of Consumption Tax


1. Business Tax
2. VAT on Importation

VAT on Importation vs. Business Tax


Point of Differentiation VAT on Importation Business Tax
Scope of tax Imports from business or Purchases from
non-business businesses only
Type of consumption tax Pure form Relative form
Statutory taxpayer Buyer Seller
The economic taxpayer Buyer Buyer
Nature of imposition Direct Indirect
Basis of tax Total purchase cost Sales or receipts

Types of domestic consumption as to taxability


1. Exempt consumptions
2. Consumptions specifically subject to percentage tax
3. Vatable consumption

Basis of exempt consumption


1. Human necessity
2. Out of scope of the tax
3. Tan incentives
4. International comity

Types of VAT on Importation


1. VAT on import of goods
2. Final withholding VAT for services

VAT on import of goods vs. Final withholding VAT


Point of differentiation VAT on Importation Final withholding VAT
Object consumption Goods Services
Target taxpayers Importers/buyers Foreign service providers
Statutory taxpayer Importers/buyers Resident purchaser of
the service
Nature Direct consumption tax Indirect business tax
Basis of tax Landed cost Contract price
Timing of payment Before withdrawal of After the month of
goods payment
Collecting Agency BOC BIR

Types of Business Taxes


1. Percentage Tax
a. Specific percentage tax (BICAP FLOW)
b. General percentage tax
2. Value Added Tax
3. Excise Tax

You might also like