Q: In retail, what taxes should I be paying and would you recommend getting a bookkeeper?
A: Retail business is essentially trading of goods. You buy goods from supplier, mark up the purchase cost and sell it at a profit.
Under this situation, you will be liable for Value Added Tax (VAT). You will have output tax computed for every sale you make to customer and reduce this by the input tax you will get from purchases to derive your VAT payments. You will also be liable to pay income tax every end of the year.
Yes, it is strongly recommended that you get a qualified bookkeeper to help you on the taxation matters so you can concentrate in growing your business.
There are administrative tasks that you need to do to comply with the requirements of the Bureau of Internal Revenue such as the monthly, quarterly and annual filing of BIR forms.
You need someone reliable and trustworthy who will help you monitor all the filings and advise you on the best approach to handle your taxes.
Henry Ong, CMC, CMA, is president and COO of Business Sense, a business advisory firm that provides expert solutions to small and medium sized companies. You may reach him at email@example.com or post your Money Matters question here.