Practice question
A seller recovers a receivable whose output VAT component had properly received Section 110(D) treatment. What must happen to that VAT component in the period of recovery?
- It stays excluded forever
- It becomes an unrelated gift
- It is added to output VAT in that period
- It automatically creates a second input credit
- It is never reported again
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
Answer this question in flashcards to review your response and continue practicing.