Practice question
A VAT-registered merchant consigns taxable goods to a reseller. No actual sale occurs within sixty days, and the goods remain consigned beyond that period rather than being returned. The merchant argues that retention of title always prevents deemed-sale treatment. Which response is best?
- Title retention repeals every deemed-sale rule
- Consignment can never have VAT consequences
- Only the consignee’s preferred bookkeeping matters
- The goods automatically become exports on day sixty-one
- The statutory unsold-consignment rule must be applied despite the absence of an ordinary completed sale
Legal references
- NIRC Section 106(B): https://lawphil.net/statutes/repacts/ra1997/ra_8424_1997.html
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