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All ▸ Bar 2024 ▸ COMMERCIAL AND TAXATION LAWS ▸ XIII. TAXATION LAW (R.A. No. 8424, as amended by R.A. No. 10963, R.A. No. 11534) ▸ J. Value-Added Tax (VAT) (R.A. No. 8424, as amended, R.R. No. 16-2005, as amended) ▸ 4. Transactions Deemed Sale Subject to VAT

Question

Question:

A company engaged in the sale of electronic gadgets recently started offering an installment plan to its customers. Under this plan, customers can pay for the gadget in equal monthly installments for a period of 12 months. The company charges interest on the installment payments. The company registered and is paying the appropriate taxes, including Value-Added Tax (VAT), for the initial sale of the gadgets.

Is the company required to collect and remit VAT on the installment payments received from customers? Explain your answer, citing the relevant provisions of the Value-Added Tax Law.



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Bar Review Question: Question: A company engaged in the sale of electronic gadgets recently started offering an install