Practice question
In a VAT chain, does an intermediate VAT-registered business buyer necessarily bear the entire passed-on input VAT permanently when the law allows it a substantiated input credit?
- No; the input-credit mechanism can affect the net economic burden.
- Yes; no business buyer can ever claim an input credit.
- No; because the buyer automatically becomes liable for the supplier's output return.
- Yes; all VAT is direct income tax on the buyer.
- No; because VAT registration abolishes every tax.
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
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