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Value Added Tax is a form of sales tax. It is a tax on consumption, levied on the sale of goods and services and on the import of goods into the Philippines. It is an indirect tax, which can be passed on to the buyer.

Every person or entity that sells/ leases goods, properties and services subject to VAT is required to file VAT Returns, if the aggregate amount of actual gross sales/ receipts exceeds Seven Hundred Fifty Thousand Pesos (PHP 750,000.00), for any twelve-month period.

In short, the following persons are liable to file VAT returns:

A person required to register as VAT taxpayer, but who failed to register
A person who imports goods
Professional practitioners such as
Certified Public Accountants
Insurance Agents (Life & Non-Life)
Professional Practitioners who are required to pass the government examination