Practice question
A seller already claimed the VAT component of an uncollected receivable as an allowable bad-debt deduction under Section 34(E). It also seeks the Section 110(D) output adjustment for that same component. Which is correct?
- Both benefits are automatically cumulative
- The prior deduction is irrelevant
- Every bad debt eliminates all VAT forever
- Section 110(D) expressly conditions the output credit on the VAT component not having been claimed as that deduction
- Only the customer decides
Legal references
- RA 11976, Sections 16 and 19-21, current NIRC Sections 106(E), 110 and 112(B): https://lawphil.net/statutes/repacts/ra2024/ra_11976_2024.html
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