Practice question
A nonresident DSP required to be VAT-registered supplies taxable digital services consumed in the Philippines to individual nonbusiness consumers who are not VAT-registered. It says every consumer must use the VAT-registered-business reverse charge, relieving it of all remittance duties. Which conclusion follows Section 108-B?
- The consumers’ lack of VAT registration makes the transaction necessarily exempt
- Every consumer must register a business solely to buy a subscription
- The nonresident DSP has the prescribed remittance liability for these non-VAT-registered consumers
- No supplier can have a tax duty without a local office
- All digital subscriptions are educational exemptions
Legal references
- RA 12023, NIRC Sections 105,108,108-A,108-B and114(D): https://lawphil.net/statutes/repacts/ra2024/ra_12023_2024.html
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