Practice question
A law exempts an entity only from direct VAT liability as a seller. Explain why that language does not necessarily exempt its purchases from VAT passed on by suppliers. Assume no separate purchase exemption or zero-rating provision applies.
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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