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Audit approach overview
Our audit approach will allow our client's accounting personnel to make the maximum contribution to the audit effort without compromising their ongoing responsibilities
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Annual and short period audit
At P&A Grant Thornton, we provide annual and short period financial statement audit services that go beyond the normal expectations of our clients. We believe strongly that our best work comes from combining outstanding technical expertise, knowledge and ability with exceptional client-focused service.
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Review engagement
A review involves limited investigation with a narrower scope than an audit, and is undertaken for the purpose of providing limited assurance that the management’s representations are in accordance with identified financial reporting standards. Our professionals recognize that in order to conduct a quality financial statement review, it is important to look beyond the accounting entries to the underlying activities and operations that give rise to them.
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Other Related Services
We make it a point to keep our clients abreast of the developments and updates relating to the growing complexities in the accounting world. We offer seminars and trainings on audit- and tax-related matters, such as updates on Accounting Standards, new pronouncements and Bureau of Internal Revenue (BIR) issuances, as well as other developments that affect our clients’ businesses.
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Tax advisory
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Tax compliance
We aim to minimize the impact of taxation, enabling you to maximize your potential savings and to expand your business.
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Corporate services
For clients that want to do business in the Philippines, we assist in determining the appropriate and tax-efficient operating business or investment vehicle and structure to address the objectives of the investor, as well as related incorporation issues.
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Tax education and advocacy
Our advocacy work focuses on clarifying the interpretation of laws and regulations, suggesting measures to increasingly ease tax compliance, and protecting taxpayer’s rights.
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Business risk services
Our business risk services cover a wide range of solutions that assist you in identifying, addressing and monitoring risks in your business. Such solutions include external quality assessments of your Internal Audit activities' conformance with standards as well as evaluating its readiness for such an external assessment.
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Business consulting services
Our business consulting services are aimed at addressing concerns in your operations, processes and systems. Using our extensive knowledge of various industries, we can take a close look at your business processes as we create solutions that can help you mitigate risks to meet your objectives, promote efficiency, and beef up controls.
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Transaction services
Transaction advisory includes all of our services specifically directed at assisting in investment, mergers and acquisitions, and financing transactions between and among businesses, lenders and governments. Such services include, among others, due diligence reviews, project feasibility studies, financial modelling, model audits and valuation.
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Forensic advisory
Our forensic advisory services include assessing your vulnerability to fraud and identifying fraud risk factors, and recommending practical solutions to eliminate the gaps. We also provide investigative services to detect and quantify fraud and corruption and to trace assets and data that may have been lost in a fraud event.
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Cyber advisory
Our focus is to help you identify and manage the cyber risks you might be facing within your organization. Our team can provide detailed, actionable insight that incorporates industry best practices and standards to strengthen your cybersecurity position and help you make informed decisions.
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ProActive Hotline
Providing support in preventing and detecting fraud by creating a safe and secure whistleblowing system to promote integrity and honesty in the organisation.
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Accounting services
At P&A Grant Thornton, we handle accounting services for several companies from a wide range of industries. Our approach is highly flexible. You may opt to outsource all your accounting functions, or pass on to us choice activities.
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Staff augmentation services
We offer Staff Augmentation services where our staff, under the direction and supervision of the company’s officers, perform accounting and accounting-related work.
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Payroll Processing
Payroll processing services are provided by P&A Grant Thornton Outsourcing Inc. More and more companies are beginning to realize the benefits of outsourcing their noncore activities, and the first to be outsourced is usually the payroll function. Payroll is easy to carve out from the rest of the business since it is usually independent of the other activities or functions within the Accounting Department.
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Our values
Grant Thornton prides itself on being a values-driven organisation and we have more than 38,500 people in over 130 countries who are passionately committed to these values.
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Our people tell us that our global culture is one of the biggest attractions of a career with Grant Thornton.
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One of the biggest attractions of a career with Grant Thornton is the opportunity to work on cross-border projects all over the world.
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Many Grant Thornton member firms provide a range of inspirational and generous services to the communities they serve.
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Behind the Numbers: People of P&A Grant Thornton
Discover the inspiring stories of the individuals who make up our vibrant community. From seasoned veterans to fresh faces, the Purple Tribe is a diverse team united by a shared passion.
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Fresh Graduates
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P&A Grant Thornton offers something you can't find anywhere else. This is the opportunity to develop your ideas and thinking while having your efforts recognised from day one. We value the skills and knowledge you bring to Grant Thornton as an experienced professional and look forward to supporting you as you grow you career with our organisation.
Remittance of VAT on Local Sales of Goods and/or Services by Registered Business Enterprises (RBEs)
(Revenue Regulations No. 09-2025 issued on February 27, 2025)
This Tax Alert is issued to inform taxpayers of the value added tax (VAT) treatment of local sales of goods and/or services by Registered Business Enterprises (RBEs) pursuant to the CREATE MORE Act.
Under the CREATE MORE Act, local sales of goods and/or services by an RBE, regardless of the income tax incentives regime and location, shall be subject to twelve percent (12%) VAT, unless otherwise exempt or zero-rated under Titles IV and XIII of this Code. For this purpose, 'local sales' shall cover sales of goods and services to domestic market enterprises or non-RBEs, regardless of whether the sale occurs within the freeport or economic zones. The liability to pay and remit the VAT on local sales by RBEs rests with the buyer of the said goods or services.
Since the buyer is the one who pays and remits the VAT, the following procedures shall be observed:
A. Buyer is Engaged in Business/Business-to-Business (B2B)
1. Invoicing by the RBE-Seller and Payment of VAT by the Buyer.
a. RBE-Seller: Bill the transaction inclusive of VAT that is shown as a separate line item in the invoice tagged as “VAT on Local Sales.” Note that the total amount due shall be exclusive of VAT since the remittance of VAT will be done by the buyer.
b. Buyer: Pay the purchase price to the RBE-Seller, exclusive of VAT.
2. Liability to File and Pay VAT – The Buyer shall be liable to pay and remit the corresponding VAT to the government.
3. Manner of Filing and Payment by the Buyer
a. For purchase of goods from economic zones or freeport – Filing and payment of “VAT on B2B local sales by RBEs” shall be on a per transaction basis using the BIR Form to be prescribed by the BIR through a separate revenue issuance.
Since the prescribed form is not yet available, BIR Form No. 0605 shall be used in the meantime, and it shall be immediately transmitted to the RBE-Seller as a requirement prior to the release of goods from the economic zone or freeport.
b. For purchase of services from economic zones or freeport and BOI-registered enterprises – Filing and payment of “VAT on B2B local sales by RBEs” shall be on a monthly basis using the BIR Form to be prescribed by the BIR through as separate revenue issuance.
Since the prescribed form is not yet available, BIR Form No. 1600-VT shall be used in the meantime, and it shall be filed on or before the tenth (10th) day of the following month in which the transaction transpired. The buyer shall then issue the VAT Certificate (BIR Form No. 2307) to the RBE-Seller either on aggregated quarterly VAT or upon demand by the RBE-Seller.
4. Compliance Requirement for RBE-Sellers
a. Filing of quarterly VAT returns (QVRs)
i. For Non-VAT registered RBEs – Not required to file QVRs
ii. For VAT-registered RBEs (under ITH/EDR/RCIT) and RBEs with mixed activities)– Required to file QVRs and shall declare as sales subject to VAT all B2B local sales with corresponding BIR Form No. 2307/0605 issued by their buyers which shall serve as proof in claiming VAT credit therefrom.
b. Submission of Summary List of Local Sales –
i. Non-VAT registered RBEs - Submit a quarterly summary list of local sales to be furnished to the BIR office having jurisdiction over the RBE following the format to be prescribed by the BIR in a separate revenue issuance, which shall indicate whether the corresponding VAT has been paid by the buyer.
ii. VAT-registered RBEs – Submit summary list following the regular submission of summary lists of sales and purchases under existing revenue issuances.
B. Buyer/Consumer is not Engaged in Business/ Business-to-Consumer (B2C)
Since buyers are not engaged in business, payment and remittance of VAT is not administratively feasible. The buyer shall therefore pay the corresponding VAT due on the transaction and the RBE-Seller shall be responsible for remitting it to the government.
1. Invoicing by the RBE-Seller and Payment of VAT by the Buyer
a. RBE-Seller: Bill the transaction inclusive of VAT that is shown as a separate line item in the invoice tagged as “VAT on Local Sales”.
b. Buyer: Pay the purchase price to the RBE-seller, inclusive of VAT.
2. Liability to File and Pay VAT – The RBE-Seller shall be liable to remit the VAT on local sales it charged to its buyers.
3. Manner of Filing and Payment by the Buyer
a. RBEs under 5% GIE/SCIT regime – Remit the VAT on local sales paid by their buyers/consumers using BIR Form No. 0605 for the meantime until a new form is prescribed. The deadline for filing is on the 10th day of the month following the transaction.
Note that those RBEs with activities not under the 5% regime shall be required to register as VAT taxpayer. The local sales shall be reported under the gross sales subject to VAT in BIR Form No. 2550Q. Those that are paid through BIR Form No. 0605 during the first two (2) months of the quarter shall be reflected as VAT credit in the BIR Form 2550Q.
b. RBEs under ITH/EDR or Regular Income Tax Rate – Remit VAT using QVR for the local sales subject to VAT.
Optional VAT Registration
RBEs that are under the 5% GIE or SCIT regime and have all its activities fall under the same, may opt to register for VAT for its local sales. The registration will not affect any existing fiscal and non-fiscal incentives that are directly attributable to the registered activity of the RBE. However, if the RBE opts to do so, it shall not be entitled to cancel such registration for the next three (3) years.
Claim of Input Tax by VAT-Registered Buyers
For VAT Registered buyers of RBEs, no input VAT shall be claimed until the VAT has been paid on the purchase from RBE-sellers, as supported by the following documents:
A. Sales invoice issued by the RBE showing the amount of VAT; and
B. Copy of the duly filed BIR Form No. 1600VT or BIR Form No. 0605, whichever is applicable.
Fo non-VAT Registered buyers, VAT paid on purchases from RBEs shall form part of the cost or expense account.
Withholding of VAT on government money payments
For RBE local sales to Philippine Government or any of its political subdivisions, instrumentalities, or agencies, including GOCCs, the creditable withholding VAT to be withheld shall be twelve percent (12%).
Transitory Provisions
RBEs with remaining registered manual invoices that include the term “VAT/VAT Amount” in the breakdown may be stamped with “VAT on Local Sales” until fully consumed, without the need for approval of the concerned BIR Office. Any new layout, upon subsequent application for authority to print, should replace the term “VAT/VAT Amount” in the breakdown with “VAT on local sales”
The same rule above applies to those invoices that are Exempt/VAT-Exempt which do not include the term “VAT/VAT Amount”.
RBEs using registered Cash Register Machines/Point-of-Sales (CRM/POS), or Computerized Accounting System (CAS), Computerized Books of Accounts with Accounting Records or other registered invoicing system/software shall reconfigure/rename their system by changing “VAT/VAT Amount” with “VAT on local sales” or adding the same in case such reconfiguration is not applicable, until December 31, 2025, subject to the post-verification of the concerned BIR Office.
If any of the provisions herein are subsequently declared invalid or unconstitutional, the validity of the remaining shall still be in full force or effect.
Issuances, rules and regulations, or parts thereof which are contrary to and inconsistent with the provisions of these Regulations are hereby repealed, amended, or modified accordingly.