Friday, January 12, 2018

Gross Sales


#TRAINlawDefinitionOfTerms

Gross Sales – refers to the total of all sale transactions reported in a period, without any deduction. However, for purposes of these regulations, the following shall be allowed as deductions:

1. Sales returns and allowances for which a proper credit or refund was made during the month or quarter to the buyer for sales previously recorded as taxable sales.

2. Discounts determined and granted at the time of sale, which are expressly indicated in the invoice, the amount thereof forming part of the gross sales duly recorded in the books of accounts. Sales discount indicated in the invoice at the time of sale, the grant of which is not dependent upon the happening of a future event, may be excluded from the gross sales within the same month/quarter it was given.

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