Question

In accordance with the provisions of Republic Act No. 8424, as amended, and Revenue Regulations No. 16-2005, as amended, certain transactions are deemed as sale subject to Value-Added Tax (VAT). Answer the following practical scenarios based on the given laws:

Scenario 1:

ABC Corporation, a registered VAT taxpayer, rented out office space to XYZ Company for a monthly rental fee of Php 50,000. Determine if the rental income of ABC Corporation is subject to VAT and explain the basis of your answer.

Scenario 2:

Juan purchased a brand new laptop from a retail store for Php 30,000. Upon payment, he was charged an additional 12% VAT. Identify the key elements that make this transaction subject to VAT and explain the relevance of these elements in relation to the VAT law.

Scenario 3:

DEF Corporation, engaged in the sale of goods, imported raw materials from a foreign supplier for production purposes. The total cost of the imported raw materials amounted to Php 1,000,000, including customs duties and other charges. Determine if DEF Corporation is liable to pay VAT for this imported transaction and provide the legal basis of your determination.