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Does Exceeding VAT Thresholds Opt for 8% Tax Rate?
Does Exceeding VAT Thresholds Opt for 8% Tax Rate?

My VAT threshold had exceeded to 3 million. Would I still be able to opt the 8% Income Tax Rate?

Kaye Estanislao avatar
Written by Kaye Estanislao
Updated over 6 years ago

Self employed individuals whose annual gross sales/receipts that exceeds the three million peso (3,000,000 PHP) Value Added Tax (VAT) threshold are not qualified of availing the newly implemented 8% Income Tax Rate option in accordance with Revenue Memorandum Order No. 23-2018. 

What if My Gross Sales/Receipts Exceed to 3 million During Mid Year?

If gross sales/receipts exceeds the 3 million threshold anytime during the taxable year once the option was made, then the taxpayer should update his/her registration from Non-VAT to VAT filer within the month, following the month that the taxpayer exceeds the threshold.

Visit this blog for you to learn more about this 8% Income Tax Rate option.

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