Practice question
What does the consignment regulation state about goods actually returned by the consignee within the sixty-day period?
- They are necessarily deemed sold anyway
- They become the consignee’s property forever
- They are not deemed sold under that consignment rule
- They create an automatic cash refund
- The consignor loses every input credit
Legal references
- NIRC Sections 106(B) and 112(A), read with subsequent amendments: https://lawphil.net/statutes/repacts/ra1997/ra_8424_1997.html
- BIR RR 16-2005, Sections 4.106-7 and 4.106-8, read with RR 4-2007 and later statutes: https://bir-cdn.bir.gov.ph/BIR/pdf/26116rr16-2005.pdf
- BIR RR 4-2007, amendments to deemed-sale and VAT-status rules: https://bir-cdn.bir.gov.ph/BIR/pdf/33868rr%20no.%204-2007.pdf
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