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Philippine Bar review · Question

Practice question: Impact and Incidence of Tax

Multiple Choice Easy

Practice question

Does passing VAT through several business stages necessarily transfer the original seller's statutory filing duty to the final household buyer?
  1. Yes; every final buyer files all suppliers' returns.
  2. No; legal obligations at each stage remain governed by the Code.
  3. Yes; the last household buyer automatically becomes every firm's withholding agent.
  4. No; because every earlier sale becomes exempt retroactively.
  5. Yes; the price alone transfers all legal obligations.

Legal references

  • NIRC Sections57-58,105-106 and110: https://lawphil.net/statutes/repacts/ra1997/ra_8424_1997.html
  • RA12023, current digital-services VAT and reverse-charge provisions: https://lawphil.net/statutes/repacts/ra2024/ra_12023_2024.html

Answer this question in flashcards to review your response and continue practicing.