---
title: "VAT on Exempt Sales"
description: "Add your Input Tax allocable to Exempt Sales in JuanTax."
url: https://help.juan.tax/en/articles/431-vat-on-exempt-sales
collection: "Value-Added Tax"
updated: 2026-07-20
language: en
---

# VAT on Exempt Sales

Add your Input Tax allocable to Exempt Sales in JuanTax.

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.

![](https://downloads.intercomcdn.com/i/o/677879577/c6919ec321092eb581f5accd/image.png?expires=1730691000&signature=eb82863d989ede20e7f0afa0b5abd2ed616f5bc79ca928037d600a830acd2c59&req=cicgHs53mIZYFb4f3HP0gE00Sef7nteT3bfkYusW8mfjKTtBnfPKW31scuA0%0A80o%3D%0A)

_There are two ways to add a transaction;_

-   Manually
    
-   By Importing a CSV file
    

_There are three types of transactions_

-   [Sales](https://help.juan.tax/en/articles/1248184-adding-sales-transactions.md)
    
-   [Purchases](https://help.juan.tax/en/articles/4809936-adding-purchase-transactions.md)
    
-   Journal
    

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.

![](https://downloads.intercomcdn.com/i/o/677884008/4136c374ccad5439b0235573/image.png?expires=1730691000&signature=d29a0b50f4848c7330234b1df60fb58f936a518e5305e7084d9dd6fae6d029ed&req=cicgHsF6nYFXFb4f3HP0gGpDdwZg%2Bd7KdX8Pcc5kysphI1hSNL7Wb14qZeWM%0AJVE%3D%0A)

**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.**

![](https://downloads.intercomcdn.com/i/o/677885177/7213e9386a7a43e060ac3f5f/image.png?expires=1730691000&signature=e2d58732ec5f6e231e81df1b99d38860bfd9ad8ff2cf96ed5c5fa4194b14f617&req=cicgHsF7nIZYFb4f3HP0gF9zyd%2BwxLLUDypME%2Bt2nFU0DWUdGCQjukusNGec%0AgJk%3D%0A)

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

![](https://downloads.intercomcdn.com/i/o/677885866/e030c551cde4cf11ee8ada38/image.png?expires=1730691000&signature=10e35ed771df9c1a6a4fa92ed723afe9d3fa201e080a5184de66e0af3eb22da8&req=cicgHsF7lYdZFb4f3HP0gIU5B5jaAn2oFR34%2B1AC6yaYMJjCl%2FFVbdnBFJmh%0AAgs%3D%0A)

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

![](https://downloads.intercomcdn.com/i/o/677890368/10400cceb99cea6aaf8eacf8/image.png?expires=1730691000&signature=f177b7c38f39338943a4a39afc949aafeb57cb470daf7c5ae1adeb9160f29877&req=cicgHsB%2BnodXFb4f3HP0gNiIptgY5mK09gOiOdjVacCFUnyyNaNRGrMHJQtc%0AYDo%3D%0A)

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.

![](https://downloads.intercomcdn.com/i/o/677892288/95064b70219ce6b5b8c94bbc/image.png?expires=1730691000&signature=4783a994c79af819e51a0228b2fea131265a74b640ab230a50c8c448787e14f2&req=cicgHsB8n4lXFb4f3HP0gEottJuXfKh839ImgjZm7lWdJzbod7V1wmAm9Es%2F%0AP5g%3D%0A)

**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.

![](https://downloads.intercomcdn.com/i/o/667315555/35708ece013ebd87eec4adfd/image.png?expires=1730691000&signature=17fa8e52aa0568bdf83211e7c5ad965ada2204f899dfa112fddb15a5de616f6e&req=ciYgFch7mIRaFb4f3HP0gC%2BwOG7rzBLm4Cj%2BZ5IrNSfKHzxOu3yc8FZ%2FOFQ%2F%0AeZs%3D%0A)

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.

![](https://downloads.intercomcdn.com/i/o/677852169/c83a9ce11d781293f846b8b3/image.png?expires=1730691000&signature=b966d5c00434ce669c148223c8dd4e3f4316a7ffe64290a9fdb32641fbac8f66&req=cicgHsx8nIdWFb4f3HP0gD%2BGkEFQVNCguFOxOLlo2woGYgPAPrthi4v0DHr2%0AkJk%3D%0A)

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.

![](https://juantax.intercom-attachments-7.com/i/o/675606925/f8033f56202a7df45e0b21bb/9tybgvsP1we7YBUX_VtQC_pt8emx40J0symOaeLk741Sd3_1eYKbA5hoocPepEnVKlEn8pa0-_Rkn2yw41LXpZgXUndefd-hlrSLXIkxUOXrpcePCw9rBUKmX4CxKDaJq2E1fp_YUcpvzbl31WF3C1I?expires=1730691000&signature=756edfaba8a0aec962c59b743caee08739fb49020d24674294116de7c52df1ae&req=ciciEMl4lINaFb4f3HP0gN5Hq76tS%2FLA5XE%2BdnQafwU40%2B1gdI156jiVT%2FjB%0Adc0%3D%0A)

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! 💬