PH BIR 3M VAT Threshold – Has anyone had a similar experience?
Hi everyone, I’m looking for advice/experiences from Filipino business owners, accountants, or anyone who has dealt with BIR and the ₱3M VAT threshold.
I run a small embroidery/service business and I’m currently non-VAT and under the 8% income tax regime. Last year, my sales were below ₱200k, but this year my business grew significantly. My concern is that this one large project pushes me just over the ₱3M threshold, which could have a significant effect on my taxes and future pricing.
Has anyone here had a similar situation where one large project pushed their business over the ₱3M threshold?
I’m especially interested in hearing from people who considered or actually underdeclared their sales to stay below the ₱3M threshold. What happened afterward? Did BIR ever question the discrepancy, especially when the client had already issued a 2307?
I’m trying to understand the real-world experience and risks, not necessarily asking for instructions on how to do it.
Also:
- How did BIR determine that you crossed the ₱3M threshold?
- Did BIR actually audit/check your sales?
- Did the 2307 create an issue if your declared sales were different?
- Is there any legitimate way to handle a situation where you’re only slightly over the threshold?
Would really appreciate hearing from anyone who has personally experienced this. Thanks!