VAT or not: the ₱3 million line

3 quick questions. Pick an answer to see why.

1. You run two Shopee stores and one Lazada store under the same registration. Which sales count toward ₱3 million?

Only your biggest store All three stores together Only what the marketplaces paid out

It's your business's gross sales across every store and channel, before fees.

2. Your sales were ₱2.8M in January–December, but ₱3.1M from April to the next March. Do you register for VAT?

No, the calendar year was under ₱3M Yes, any 12 months in a row count Only if it happens two years running

The test runs over any 12 consecutive months, not only the calendar year.

3. A sole proprietor on 8% passes ₱3M in October. What happens to the 8%?

It stays until December It ends, and the whole year uses graduated rates It becomes 12%

The 8% option is only for sales of ₱3M or less. Once passed, it's lost for the whole year and income tax uses the graduated rates; VAT registration follows.

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