Practice question
A seller fully paid output VAT on a credit sale. The payment term lapsed and all Section 110(D) conditions are satisfied. It has P120,000 current output VAT, P50,000 allowable input VAT and a P20,000 valid uncollected-receivable output adjustment. With no other items, what is net VAT?
- P120,000
- P50,000
- P70,000
- P170,000
- Zero in every case
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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