Practice question
A nonresident DSP's invoice covers taxable and VAT-exempt digital-service components but presents one undivided price with no component breakdown. What requirement is relevant?
- Mixed supplies automatically become entirely exempt.
- A single total always eliminates the need to identify tax treatment.
- The buyer must guess the component values.
- The special rule requires a clear taxable, exempt and zero-rated breakdown where applicable, with VAT calculations for each portion.
- The invoice must instead conceal every transaction reference.
Legal references
- RA12023, digital-services VAT, NIRC108-B,110 and113: https://lawphil.net/statutes/repacts/ra2024/ra_12023_2024.html
Answer this question in flashcards to review your response and continue practicing.