Common VAT mistakes

3 quick questions. Pick an answer to see why.

1. Kuting Kitchen books ₱201,600 of marketplace fees as one expense, without splitting out the VAT. What happens on the 2550Q?

Nothing, fees have no VAT It pays ₱21,600 more VAT than it should It pays ₱21,600 less VAT than it should

The fees include ₱21,600 of input VAT. Leave it out and input VAT drops, so VAT payable goes up by ₱21,600.

2. A VAT-registered seller had no sales this quarter. Does she file a 2550Q?

No, there's nothing to report Yes, with zeros, as long as her VAT registration is active Only if BIR sends a notice

The 2550Q is due every quarter while the VAT registration hasn't been cancelled, even with no sales.

3. What goes to BIR with the 2550Q each quarter?

The SLSP, listing the sales and purchases behind it Every marketplace payout report Nothing else

The Summary List of Sales and Purchases is due with the return: the 25th day after the quarter, or the 30th for eFPS filers.