Practice question
A foreign tourist buys and consumes an ordinary taxable restaurant meal in Manila. No special relief applies. The restaurant claims export treatment solely because the diner is foreign. Which response is best?
- Nationality alone conclusively makes consumption foreign
- Every tourist purchase is automatically an export
- Foreign payment cards eliminate VAT
- The meal is consumed locally; foreign nationality alone does not establish export treatment
- The restaurant becomes a foreign customs territory
Legal references
- CIR v. Seagate Technology, G.R. 153866, February 11, 2005 (destination principle): https://lawphil.net/judjuris/juri2005/feb2005/gr_153866_2005.html
- Maibarara Geothermal v. CIR, G.R. 250479, July 18, 2022: https://lawphil.net/judjuris/juri2022/jul2022/gr_250479_2022.html
Answer this question in flashcards to review your response and continue practicing.