Practice question
When a quarter's output VAT exceeds allowable input VAT, Section 110 ordinarily requires what treatment of the excess?
- Automatic cancellation of all tax
- An automatic cash refund to the seller
- Payment of the excess output VAT
- Conversion of the excess to salary
- Permanent exemption from registration
Legal references
- NIRC Section 110(A)–(C), as amended; https://lawphil.net/statutes/repacts/ra1997/ra_8424_1997.html
- RA 11976 Sections 19 and 21, input VAT and invoicing; https://lawphil.net/statutes/repacts/ra2024/ra_11976_2024.html
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