VAT on Exempt Sales

Add your Input Tax allocable to Exempt Sales in JuanTax.

Maui Banag avatar
Written by Maui Banag
Updated over a week ago

To manage your Input Tax allocable to Exempt Sales (Schedule 5), follow these steps:

STEP 1: On the sidebar menu, click Transactions, then Add Transaction. Select Import CSV from the menu, then choose the type of transaction you want to import.

There are two ways to add a transaction;

  • Manually

  • By Importing a CSV file

There are three types of transactions

For this example, we will add a manual transaction under Sales.

STEP 3: Complete the table and select the appropriate tax type. For this specific transaction, it should be Tax Exempt Sales. This is applicable to both goods and services transactions.

STEP 4: Once you enter the transaction, Schedule 5 will appear in the Summary of your VAT Report. To view this change, return to your dashboard and click Value Added Tax Return.

STEP 5: Click the Edit Schedule button to make the Input Tax Attribute to Exempt Sales window appear.

STEP 6: Start entering the numbers, click the Calculate button, then click Save.

This will take you to the home page of the Value Added Tax Return. Click the Report tab and then go to line 20C to view the updated Schedule 5 of your 2550M form.

Important Reminder:

On January 13, 2023, the Bureau of Internal Revenue (BIR) issued Revenue Memorandum Circular (RMC) No. 5-2023. This declares the removal of BIR Form 2550-M and states that taxpayers registered for value-added tax (VAT) are no longer required to file a monthly VAT declaration (BIR Form No. 2550-M) for transactions starting January 1, 2023, and must instead file the corresponding quarterly value-added tax return (BIR Form 2550-Q) within twenty-five (25) days following the close of each taxable quarter when the transaction occurred.

The table below is also included in this RMC to assist taxpayers.

The full version of this issuance is available on the BIR website.

What happens if I'm a Juantax user?

We have added a banner to the tax form 2550M/Q to remind VAT-registered users about the BIR announcement.

As you can see, the drop-down menu now only displays the quarterly filing months. The complete list of months previously shown has now been removed.

If you have any further questions, please contact us via email or by clicking the chat icon in the lower-right corner of any JuanTax page, and we'll be happy to assist! 💬

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