Gross sales vs. gross receipts: Impacts on Philippine sellers

The private sector is pushing for taxing the seller on gross receipts, for when the goods or services have actually already been paid. The current setup is good for the government, but what about the seller, asked Ma. Lourdes P. Lim, vice chairman and tax managing partner of PwC Philippines.

There’s an input tax for sellers of merchandise, she pointed out. For sellers of service though, there is none.

“For sellers of service, the big cost is labor, and it’s not subject to VAT [Value Added Tax]. So that’s the disparity,” she said.

“It’s more of ease on the taxpayer if it’s based on cash receipts,” she told ����ý. “At least may pera ka nang pambayad sa (you have the money to pay the) tax.”

Interview by Patricia Mirasol
Video editing by Jayson Mariñas/ Arjale Queral

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