Practice question
A VAT-registered appliance dealer takes a refrigerator from taxable stock originally held for sale and permanently uses it in the owner’s private home, outside business. Which provision is directly implicated?
- Only the rule for bank interest
- The nonbusiness transfer, use or consumption deemed-sale rule
- Only inheritance taxation
- An automatic exemption for all owners
- No VAT rule can apply without a cash customer
Legal references
- NIRC Section 106(B): https://lawphil.net/statutes/repacts/ra1997/ra_8424_1997.html
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