Practice question
A seller absorbs VAT in one contract and passes it on in another. Explain why both choices can coexist with the seller remaining the legally liable taxpayer.
Legal references
- Bagong Alyansang Makabayan v. Abaya, G.R. No. 221190, October 8, 2024, en banc main decision, discussion of VAT shifting: https://lawphil.net/judjuris/juri2024/oct2024/gr_221190_2024.html
- Philippine Airlines, Inc. v. CIR, G.R. No. 198759, July 1, 2013, main decision: https://lawphil.net/judjuris/juri2013/jul2013/gr_198759_2013.html
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