Practice question
A VAT-registered supplier sells fuel to a shipping operator for its international shipping operations, with every condition of amended Section 106(A)(2)(a)(4) met. Which treatment follows that route?
- Automatically exempt with no input consequences analysis
- Zero-rated under the specified export-sales provision
- Always the standard rate because the seller is domestic
- Only a personal income-tax exclusion
- A rate chosen by the ship’s captain
Legal references
- RA 12066, Sections 6-9, amended NIRC Sections 106, 108, 109 and 112(C): https://lawphil.net/statutes/repacts/ra2024/ra_12066_2024.html
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