Determining whether you are a Non-VAT or VAT taxpayer depends on the non-negotiable condition of whether your income falls under or above the Php3 Million threshold in a taxable year.
Non-VAT taxpayers
Income falls below Php3Million threshold.
In most cases, individual taxpayers fall under this category and have to file Percentage Tax (2551Q) every quarter.
VAT taxpayers
Income falls above or equal to Php3Million threshold.
Businesses and corporations usually fall under this category and have to file Monthly and Quarterly VAT forms (2550M, 2550Q).
However, there are some cases where Non-VAT taxpayers reach the threshold in the middle or within their taxable year or vice versa. Since this is a non-negotiable condition, taxpayers have no choice but to switch. In such a case, how does this affect your taxpayer profile in Taxumo?
How to switch between the two in my Taxumo profile?
To switch from either profile, simply go to your Settings tab and scroll down to the Forms you are filing section.
In the example below, the current profile is VAT and will be switching to Non-VAT. You will notice this because the "Monthly & Quarterly VAT" tax card is highlighted blue and activated.
To switch to Non-VAT, click on the "Percentage Tax" card to activate it.
The same process will work vice versa. You can only select either VAT or Percentage Tax but never both.
What will happen to my profile?
Once you've switched, you may notice that the Cashflow entries from your previous profile will disappear. This is because your Cashflow tab will only show entries relevant to your current taxpayer profile. There is no need to be alarmed by this as the entries from your previous profile will still be included in the calculation of your Annual ITR.
If you have any other questions, feel free to reach our to our Customer Support through cs@taxumo.com or through the Intercom chat bubble.