Practice question
An airline buys one identifiable fuel batch for international transport and another solely for domestic operations. It invokes the international-operations zero-rating route for both merely because it also flies abroad. Assume the domestic batch qualifies under no other relief. Which is sound?
- Airline identity alone zero-rates every purchase
- The domestic batch is automatically an export
- The actual use condition must be applied; international operations do not automatically qualify the separate domestic batch
- All airline purchases are always exempt
- Only the invoice’s currency matters
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
Answer this question in flashcards to review your response and continue practicing.