Practice question
In 2026 a supplier prints zero-rated sale on an invoice to an ordinary domestic customer. The transaction satisfies no zero-rating provision, exemption or special relief. The supplier argues that the notation alone fixes the rate at zero. Which response is correct?
- The printed words override the Code
- Substantive statutory entitlement must exist; invoice wording alone cannot create zero-rating
- Every invoice recipient is an export enterprise
- All domestic transactions are automatically zero-rated
- The tax rate depends only on whether the buyer complains
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
- NIRC Section 113(B), as amended by RA 11976: https://lawphil.net/statutes/repacts/ra2024/ra_11976_2024.html
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