Practice question
In 2026 an RBE sells ordinary taxable goods to a non-RBE domestic buyer for consumption in the Philippine market. Delivery occurs inside an economic zone. No exemption or zero-rating provision applies. The seller invokes older cross-border descriptions to claim that location alone makes this domestic sale zero-rated. Which result follows CREATE MORE?
- The local sale is subject to 12% VAT despite zone location, under the stated conditions
- All sales inside a zone are automatically zero-rated forever
- The buyer’s domestic use is legally irrelevant in every case
- All RBE income-tax incentives are identical to VAT exemptions
- The parties may elect any VAT rate
Legal references
- NIRC Sections 106,108,293(D),295(D), as amended by RA 12066, Sections 6-7,16,18: https://lawphil.net/statutes/repacts/ra2024/ra_12066_2024.html
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