Practice question
A VAT-registered seller makes a legally qualifying export shipment of goods, satisfying all statutory requirements. Which output-tax treatment best reflects the destination principle?
- Automatic VAT exemption identical in every respect to zero-rating
- Ordinary VAT solely because the goods were produced locally
- No requirement to document the transaction
- VAT only if the buyer requests it
- Zero-rated treatment under the applicable export provision
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
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