SECTION 1
SECTION 1.
Section 110 (B) of the National Internal Revenue Code of 1997, as amended, is hereby further amended to read as follows:
"
(B) Excess Output or Input Tax
- If at the end of any taxable quarter the output tax exceeds the input tax, the excess shall be paid by the VAT-registered person. If the input tax exceeds the output tax, the excess shall be carried over to the succeeding quarter or quarters:
Provided, however,
that any input tax attributable to zero-rated sales by a VAT-registered person may at his option be refunded or credited against other internal revenue taxes, subject to the provisions of Section 112."
SEC. 2
Implementing Rules and Regulations
SEC. 2.
Implementing Rules and Regulations.
- The Secretary of Finance shall, upon the recommendation of the Commissioner of Internal Revenue, promulgate the necessary rules and regulations for the effective implementation of this Act.
SEC. 3
Repealing Clause
SEC. 3.
Repealing Clause.
- All laws, decrees, executive orders, rules and regulations or parts thereof of which are contrary to or inconsistent with this Act are hereby repealed, amended or modified accordingly.
SEC. 4
Effectivity
SEC. 4.
Effectivity.
- This Act shall take effect fifteen (15) days after its publication in the
Official Gazette
or in any two newspapers of general circulation, whichever comes earlier.
Approved,
MANNY VILLAR
President of the Senate
JOSE DE VENECIA, JR.
Speaker of the House of Representatives
This Act which originated in the House of Representatives was finally passed by the House of Representatives and the Senate on September 26, 2006 and October 9,2006, respectively.
OSCAR G. YABES
Secretary of Senate
ROBERTO P. NAZARENO
Secretary General
House of Represenatives
Approved: November 21, 2006
GLORIA MACAPAGAL-ARROYO
President of the Philippines