Philippines Tax Codes

For NetSuite to calculate correct values on transaction records and tax reports, make sure that the tax codes for each nexus are set up correctly.

For more information about tax codes, see Tax Code Properties and Creating Tax Codes.

Tax Code Table for the Philippines

The following table shows the tax properties required to correctly generate the Philippines VAT reports provided by the International Tax Reports SuiteApp. The tax code names or letters presented in the table are suggested names or default system preferences. You can rename the tax codes. Tax reports identify transactions by looking at the tax code properties, not the tax code names.

On the New Tax Code or Edit Tax Code page, check the boxes of the properties that apply to the tax code. For more information about tax code properties, see Tax Code Properties.

To understand how NetSuite uses the tax codes to get the values for the Monthly Value-Added Tax Declaration form 2550M, see What goes into each box - Philippines VAT report.

Important:

Please consult your tax agency for the correct tax rates.

Note:

Tax Type for the following tax codes is VAT.

Tax Code	Description	Rate	Property	Purchase Tax Account	Sales Tax Account	Available On
S-PH	Vatable Sales of Goods and Services/Receipt of Goods	12%	Default	VAT on Purchases	VAT on Sales	Both (Sales and Purchases)
Z-PH	Zero Rated Sales/Receipts/Purchases	0%	Export	VAT on Purchases	VAT on Sales	Both (Sales and Purchases)
EX-PH	Exempt Sales/Receipts/Purchases Not Qualified for Input Tax	0%	Exempt	VAT on Purchases	VAT on Sales	Both (Sales and Purchases)
G-PH	Sales to Government/Purchases Allocated for Sales to Government	12%	Government	VAT on Purchases	VAT on Sales	Sales
CAP-PH	Purchase of Capital Goods	12%	Capital Goods	VAT on Purchases	VAT on Sales	Purchases
IMPT-PH	Importation of Goods other than Capital Goods	12%	Import	VAT on Purchases	VAT on Sales	Purchases
SVC-PH	Domestic Purchases of Services	12%	Applies to Service Items	VAT on Purchases	VAT on Sales	Purchases
SVCA-PH	Services rendered by Nonresidents	12%	Applies to Service Items Import	VAT on Purchases	VAT on Sales	Purchases
UNDEF-PH	Used when NetSuite cannot determine the appropriate tax code for a transaction	0%	Exclude from VAT reports	VAT on Purchases	VAT on Sales	Both (Sales and Purchases)

Tax Code Table for the Philippines

Related Topics