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Philippine Bar review · Question

Practice question: VAT Exempt Persons and Transactions

Multiple Choice Easy

Practice question

How does Section 109 treat an individual's services rendered under an employer-employee relationship?
  1. As taxable professional services in every case
  2. As VAT-exempt under the specified employee-service category
  3. As zero-rated exports in every case
  4. As automatically exempt from income tax as well
  5. As services that require every employee to issue a VAT invoice

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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