Understanding VAT and non-VAT Classifications in the Philippines: A Comprehensive Guide for Businesses

ByElites

Value-Added Tax (VAT) in the Philippines can seem complex, but understanding the various VAT classifications is essential for compliance and accurate accounting. The Bureau of Internal Revenue (BIR) mandates specific VAT types depending on the nature of a business and its transactions. Here’s an in-depth look at the VAT classifications and how each affects business…

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Sample Chart of Accounts

ByElites

Here’s a sample chart of accounts tailored to align with Philippine Financial Reporting Standards (PFRS), which are based on International Financial Reporting Standards (IFRS) but adjusted to meet local regulations and tax laws. This chart includes common account categories used in businesses in the Philippines. 1000 – Assets 2000 – Liabilities 3000 – Equity 4000…

Creating a Chart of Accounts for Philippine Businesses: A Guide to Compliance and Efficiency

ByElites

Setting up a robust chart of accounts (COA) is one of the foundational steps for any business, providing a framework for recording, categorizing, and analyzing all financial transactions. For businesses in the Philippines, a well-structured COA is crucial for compliance with Philippine Financial Reporting Standards (PFRS) and the Bureau of Internal Revenue (BIR) requirements. This…