The challenge

Client had auto-registered for VAT at incorporation but most input purchases were from VAT-exempt suppliers (small manufacturers, freelancers, online ad platforms). They were essentially paying 12% output VAT with almost no input credit.

What we did

• 1Modeled both scenarios across the prior 12 months of marketplace + own-site revenue
• 2Reviewed their input invoice mix (only 14% had claimable input VAT)
• 3Filed BIR Form 1905 to deregister from VAT and switch to percentage tax (3%)
• 4Updated Authority to Print and OR booklets
• 5Set up quarterly 2551Q workflow