Practice question
A supplier sells online subscription-based services to a private educational institution duly recognized by CHED. The transaction falls within Section 109(H)'s amended subscription-sale language, and no option to tax is made. A revenue officer says the provision exempts only classes supplied by schools and never subscription services sold to them. Which response is correct?
- Agree; sales to recognized institutions are expressly excluded.
- Disagree; RA 12023 expressly adds the specified online subscription-based sales to the exempt category.
- Agree; every digital service is taxable without exception.
- Disagree; every subscription sold to any consumer is therefore exempt.
- Agree; recognition by an education agency is irrelevant.
Legal references
- NIRC Section 109(1)(G)–(I), as amended by RA 10963 Section 34 and RA 12023 Section 5; https://lawphil.net/statutes/repacts/ra2017/ra_10963_2017.html ; https://lawphil.net/statutes/repacts/ra2024/ra_12023_2024.html
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