The expanded value added tax increased the vat rate from 10% to 12%. When computing for your input VAT, the net amount is now divided by 1.12, instead of 1.10.
The formula for getting the gross amount is derived below:
Thus, if the net amount paid is P33.60:
P30.00 is to be recorded as Expense, and the remaining amount (P3.60) is to be recorded as Input Vat.
The formula for computing the input VAT is derived below:
If the net amount is P33.60:
SEC’s iRegister, among other things, allows you to reserve & register a company name online. Not that SEC actually needs it — the old-fashioned way is not a bad experience. SEC has one of the most efficient queuing systems, second to the MMDA.
To access iRegister, visit the SEC website, and go to Online Transactions > Reserve Company Name. You can also proceed directly to the iRegister website.
Ingenious is the system’s capability to check if your proposed company name is “valid”. This is a welcome feature for those who have gone thru the manual validity check.
iRegister automatically checks your proposed company name against:
- Offensive words
- Internationally known foreign corporations
- Registered names
- Reserved names
- Company-owned words
- Restricted words in accordance to existing laws
Some words of warning, though: When registering, make sure that you are ready to pay immediately. The system only gives 4 days to pay Reservation Fee.
And, make sure that you have access to their payment mechanisms. The biggest weakness of iRegister is their methods of payment. You can only pay via:
1. SEC Teller
2. UnionBank Teller
3. UnionBank Fund Transfer
It gets worse: There is only one SEC office in Metro Manila. And there is also only one UnionBank branch which can accept your payment — which is ironically located beside SEC.
All things considered, iRegister can still be considered an indispensable tool for the Filipino entrepreneur.
Stay tuned for an article on online company registrations.