Practice question
A VAT-registered Philippine business buys taxable digital services from a nonresident DSP for consumption here. Which statutory mechanism directly applies to the VAT due?
- Automatic exemption for every business purchase
- The buyer’s reverse-charge withholding and remittance under Section 114(D)
- A mandatory estate-tax return
- A tax payable only if the server is local
- An unrestricted buyer election to pay no VAT
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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