Practice question
Which statement best describes VAT as an indirect tax under section 105 of the NIRC?
- Only the government may bear its cost
- Its statutory liability always disappears after invoicing
- It can never affect a purchase price
- Its economic burden may be passed to the buyer
- It is imposed only on income earned by employees
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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