Practice question
An enterprise fails the preceding-year 70% export-sales threshold governing its local-purchase zero-rating under Section 106(A)(2)(a)(3). What consequence is expressly provided for that route?
- Permanent dissolution
- Automatic exemption of all purchases
- Cancellation of every supplier’s tax registration
- The threshold is irrelevant once any export occurred
- Disqualification from the specified local-purchase zero-rating in the immediately succeeding year
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
Answer this question in flashcards to review your response and continue practicing.