Practice question
A qualified registered export project needs janitorial and accounting services incidental to and reasonably necessary for that project. The relevant IPA makes the required direct-attribution determination, and all other conditions for the VAT-registered supplier’s zero-rating are met. An auditor rejects the claim solely because the services do not become physical ingredients in exported goods. Which answer follows CREATE MORE?
- The current definition can include these necessary administrative and support services; physical incorporation is not the sole test
- Only raw materials can ever be directly attributable
- Every personal expense of an owner therefore qualifies
- IPA determinations are never relevant
- All accounting services to any person are automatically zero-rated
Legal references
- NIRC Sections 106,108,293(D),295(D), as amended by RA 12066, Sections 6-7,16,18: https://lawphil.net/statutes/repacts/ra2024/ra_12066_2024.html
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