VAT threshold

VAT threshold — the gross-receipts line (₱3,000,000/yr under TRAIN as amended) above which a business must register for VAT: 12% on sales, input-credit accounting, heavier filing cadence — and the 8% option dies, forcing graduated rates. An agency approaching the line should price and structure deliberately quarters ahead, not discover it in an assessment. Export-services note: agency income from foreign clients may qualify for VAT zero-rating even past the threshold (income tax still applies) — get a PH CPA’s opinion in writing near the line.

First used in: 2.7 · The tax layer