---
title: "October 9, 2017"
description: "We’ve made it easier for you to manage your VAT on Sales to Government and Input Tax allocable to Exempt Sales of your 2550M form."
url: https://help.juan.tax/en/articles/433-october-9-2017
collection: "2017"
updated: 2024-11-18
language: en
---

# October 9, 2017

We’ve made it easier for you to manage your VAT on Sales to Government and Input Tax allocable to Exempt Sales of your 2550M form.

## VAT on Sales to Government

In order to access **Input Tax on Sale to Govt. closed to expense (Schedule 4)**, you should first go to **Summary**, then click the **Edit Schedule 4** button.

![](https://lh5.googleusercontent.com/_J_C7BVWzJpgOoldG9PZCC7WldENYCVl7w92FG25mpH99Xfo47ifgFDgvGyLSAQ1lo-tU7ioxLJjbHFXU4ISlvkinEo4pCWVb7pxYuKHirmOMELFmjA5D3bXqlvzKSiShKFMq6O3)

Here are some of the formulas needed for you to complete the Schedule 4 of your 2550M form:

## Standard Input Tax to sale to government

This kind of VAT on Sales is the result of taxable sales transactions to government with 12% VAT multiplied with taxes withheld from sales coming from products/services sold by supplier to the government (7%).

**_Formula: \[Taxable Sales to Government   X   Amount of Input Tax not Directly Attributable\]_**

Example:

If you have 1,400,000 of total sales, and 200,000 of it it were sales to government, then:

**_200,000 x 0.07 = 14,000_**

## Total Input Tax attributable to sale to government

To calculate your total input tax attributable, you should get the sum of both your **Input Tax Directly Attributable to Sale to Government** with the **Amount of Input Tax Not Directly Attributable**. See formula below:

**_\[Input Tax directly attributable to sale to government  +  Amount of Input Tax not directly attributable\]_**

## Input Tax on Sale to Govt. closed to expense (To Item 20B)

To get this amount, subtract your **Total Input Tax attributable to sale to government** with your **Standard Input Tax to sale to government.**

**_Formula: \[Total Input Tax attributable to sale to government - Standard Input Tax to sale to government\]_**

![](https://lh4.googleusercontent.com/_N31wMWzXr--xW41YJhr26AywW2RH2Qhq03Tn8tVvrhK2xKFXT18YSQvhYOi-W1aheCUy1C29n30QAK0pLoWdJ_99bLYOLfTUxPPl9tzhavHikyHbE7-wwd96C96hXrQKloW_fht)

Enter your numbers in the appropriate textboxes then hit **Calculate** to get the amounts. Click **Save** button to save your changes.

## Managing Input Tax allocable to Exempt Sales 

To manage your **Input Tax allocable to Exempt Sales (Schedule 5)**, you should first create a transaction in which the tax rate is set to **Tax Exempt Sales**. 

![](https://lh4.googleusercontent.com/6Mjo-TtW6T3fD_wFK7i6PrSlOwksnB_RlSHuw3r5ZsHwldLADNsiOfMM3HnF3rY_-AypBfqxuCZJN4gSgHBefAQu-ds24O7r4zpSeEoEeumIgDsJh9pjV1IZ4w0Tp6BN2abAvymE)

Entering the transaction will enable **Schedule 5** in the **Summary** of your VAT Report.

![](https://lh5.googleusercontent.com/rDRGGEVKq5OPtx-D2Pg-9o_BSRoBfh882U1QGoqGtrXi_tA3Nf5RQJf0C3tewna5b-K6wogsdo4sPCiypPqd9qgkcxNGkdG00OsKqLjfFljLd5PDHtiXqJMGRZfyuNi96FC97mY1)

In order to get your **Total Input Tax attributable to exempt sale (To Item 20C)**, you need to subtract your **Input Tax directly attributable to exempt sale** with your **Ratable portion of Input Tax not directly attributable to any activity**, which can be achieved by using this formula:

**_\[Tax Exempt Sale / Total Sales   X   Amount of Input Tax not Directly Attributable\]_**

![](https://lh5.googleusercontent.com/bdfR6jPRF_x9y5TnzvGK1UFrd8yaMZ5s0L8r6P5FAXNj7dHOvCqiZ381n3mPWYZ_TIp2OBtObWjIsKsWccrEgGqmKeMVCZNFm1Q9D7lqk5dRb02nPS4mXoXSBQ0TWxcEminIJvNS)

After you have entered your details, you can simply click the **Save** button to update the Schedule 5 of your 2550M form.