Vat Invoice Template for Philippines

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Vat Invoice

"I need a VAT Invoice template for my IT consulting company that includes both PHP and USD currency conversion rates, with specific sections for detailing hourly professional service rates and software licensing fees for implementation in March 2025."

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What is a Vat Invoice?

The VAT Invoice is a fundamental tax document required under Philippine tax law for businesses registered for Value Added Tax. It serves as the primary evidence of taxable transactions and is essential for proper VAT reporting and claims. When issuing a VAT Invoice, businesses must comply with strict requirements set by the Bureau of Internal Revenue (BIR), including specific format guidelines, mandatory information fields, and proper VAT calculations. The document is crucial for both the seller's VAT output tax liability and the buyer's input VAT claims. It must be issued for each taxable transaction where the seller is VAT-registered and the sale exceeds the prescribed thresholds. The requirements for VAT Invoices are primarily governed by the National Internal Revenue Code and its implementing regulations, with recent updates incorporating provisions for electronic invoicing systems.

What sections should be included in a Vat Invoice?

1. Invoice Header: Contains the title 'VAT Invoice' and the BIR-assigned invoice number

2. Seller Information: Complete registered name, TIN, address, and contact details of the selling entity

3. Buyer Information: Complete registered name, TIN, address, and contact details of the purchasing entity

4. Invoice Details: Invoice date, due date, and payment terms

5. Item Description: Detailed description of goods/services, quantity, unit price, and amount

6. Computation Section: Breakdown of net amount, VAT (12%), and total amount due

7. Declaration Statement: Standard BIR-required statement regarding VAT registration and liability

8. Authorization: Signature section for authorized representative

What sections are optional to include in a Vat Invoice?

1. Purchase Order Reference: Include when the invoice needs to reference specific purchase orders or contracts

2. Delivery Details: Add when shipping information needs to be included on the invoice

3. Special Discounts: Include when there are trade or volume discounts applied

4. Foreign Currency Conversion: Add when transaction involves foreign currency, showing conversion to PHP

5. Payment Instructions: Include when specific payment methods or bank details need to be specified

What schedules should be included in a Vat Invoice?

1. Detailed Breakdown Schedule: Itemized list of goods/services when there are numerous items

2. VAT Calculation Schedule: Detailed computation of VAT for complex transactions with multiple tax rates or exemptions

3. Terms and Conditions: Standard terms of sale when needed for complex transactions

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant Industries

Retail

Manufacturing

Professional Services

Information Technology

Construction

Healthcare

Wholesale Trade

Real Estate

Financial Services

Telecommunications

Transportation and Logistics

Tourism and Hospitality

Relevant Teams

Finance

Accounting

Tax

Accounts Receivable

Accounts Payable

Treasury

Sales Administration

Credit Control

Billing

Financial Control

Relevant Roles

Accountant

Finance Manager

Tax Manager

Accounts Receivable Specialist

Accounts Payable Specialist

Financial Controller

Billing Coordinator

Tax Compliance Officer

Finance Director

Bookkeeper

Sales Administrator

Credit Controller

Treasury Manager

Chief Financial Officer

Industries
Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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