Practice question
A customer pays the VAT component included in a supplier’s invoice for an ordinary taxable domestic sale. The supplier says the customer must now file the supplier’s VAT return because the tax was passed on. Is that correct?
- Yes, because every invoice transfers statutory liability
- Yes, if the customer paid by bank transfer
- Yes, because VAT and income tax have identical taxpayers
- Yes, unless the customer is an individual
- No. Passing the cost does not transfer the supplier’s statutory VAT obligations
Legal references
- https://lawphil.net/statutes/repacts/ra1997/ra_8424_1997.html — NIRC, section 105, indirect nature of VAT
- https://lawphil.net/judjuris/juri2005/feb2005/gr_153866_2005.html — CIR v. Seagate Technology (Philippines), G.R. No. 153866, February 11, 2005, indirect taxation and distinction between liability and burden
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