Practice question
In 2026 a VAT-registered business purchases services for taxable operations. A compliant VAT invoice establishes accrued VAT, all substantive credit conditions are met, but the price is not yet paid. The officer denies input credit solely under an old cash-payment-only services summary. Which is correct?
- Only cash payment can ever support service input VAT
- An invoice never matters
- Every accrued expense automatically gives credit without proof
- The old summary overrides EOPT
- Current Section 110(A)(1)(b) addresses accrued VAT on service purchases; that sole old cash-only ground is insufficient on the stipulated facts
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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