Characteristics of VAT-able transactions
The following, according to Mamalateo, are the characteristics of the transaction subject to value-added tax (VAT).
[1] The taxpayer pays tax for the value added.
[2] It is a transparent form of tax because the amount of tax can be "seen" by the taxpayer. The amount of tax can be segregated.
[3] The tax is broad-based. It is imposed on consumption of goods, properties and services in the Philippines, extending to all stages of manufacture, production and distribution of goods and services.
[4] It is an indirect form of tax.
[5] The "separate indication of tax method" is used in the Philippines.
[6] There is no cascading in the VAT system and, therefore, it is not a tax on tax.TAX:
[1] The taxpayer pays tax for the value added.
[2] It is a transparent form of tax because the amount of tax can be "seen" by the taxpayer. The amount of tax can be segregated.
[3] The tax is broad-based. It is imposed on consumption of goods, properties and services in the Philippines, extending to all stages of manufacture, production and distribution of goods and services.
[4] It is an indirect form of tax.
[5] The "separate indication of tax method" is used in the Philippines.
[6] There is no cascading in the VAT system and, therefore, it is not a tax on tax.TAX: