Practice question
A VAT-registered nonresident DSP invokes the ordinary input-credit system to offset local input tax despite the express nonresident-DSP rule, while also asserting that denial of credit necessarily cancels its output obligations. Which is best?
- The specific no-credit rule and the separate output/remittance rules must both be applied.
- No input credit necessarily means no output VAT can ever be due.
- Every denied credit automatically becomes a cash refund.
- The provider may opt out of the statute by private invoice wording.
- The provider automatically becomes resident by requesting a credit.
Legal references
- RA12023, digital-services VAT, NIRC108-B,110 and113: https://lawphil.net/statutes/repacts/ra2024/ra_12023_2024.html
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