Taxation system in the Philippines is complex and complicated. Simplify it. Currently VAT is at 12% that exempts certain types of goods. A business is either VAT or non-VAT. Some taxpayers are exempted from it such as the senior citizens.
Just simplify VAT. Make all things ‘vatable’ so that whether you’re rich or poor, you make a contribution for the good of the economy. Regardless of how much you earn a year, VAT it. Whether you’re a government entity, private, charitable, educational, or NGO, VAT it. Whether it is a purchase or donation, VAT it. No more exemptions. Senior or non-senior, VAT it. You call this Equality Tax.
Simplify calculation. Fix it to 10%. In reporting, whatever the amount of gross sales, 10% of that should be the collected VAT.
Simplify reporting. Instead of monthly reporting, make it quarterly.
Simplify auditing. Whatever is the amount of your gross sales, 10% of that is VAT because all things are vatable. That 10% should be equal to the amount remitted in that quarter.
With a computerised system, gather all VAT payments and receipts per entity, then you’ll know who is not remitting correctly. Therefore, ask for a receipt all the time.