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Sale in The Ordinary Course

Any person or entity engaged in trade or business that sells, barters, or leases goods and services, or imports goods, is liable to collect and remit value-added tax on those transactions according to Philippine tax law. Individual importers, whether engaged in trade or business or not, are also liable for VAT on goods they import. And non-exempt recipients of goods imported tax-free by exempt entities become liable for any applicable VAT when those goods are transferred to them.

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Jhazreel Biasura
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40 views1 page

Sale in The Ordinary Course

Any person or entity engaged in trade or business that sells, barters, or leases goods and services, or imports goods, is liable to collect and remit value-added tax on those transactions according to Philippine tax law. Individual importers, whether engaged in trade or business or not, are also liable for VAT on goods they import. And non-exempt recipients of goods imported tax-free by exempt entities become liable for any applicable VAT when those goods are transferred to them.

Uploaded by

Jhazreel Biasura
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd

Biasura, Jhazreel Mae N.

BSA 2B

Persons Liable

 Sale in the Ordinary Course:


Section 4.105-1 of RR 16-2005 provides that any person who, in the course of his trade or business, sells,
barters, exchanges or leases goods or properties, or renders services, and any person who imports
goods, shall be liable to VAT imposed in Sections 106 to 108 of the Tax Code.

 Importation:
In the case of importation of taxable goods, the importer, whether an individual or corporation and
whether or not made in the course of his trade or business, shall be liable to VAT imposed in Sec. 107 of
the Tax Code.

 Transfer made by a tax-exempt entity to none-tax exempt entity


Section 107(B) of the Tax Code provides that in the case of tax-free importation of. goods into the
Philippines by persons, entities, or agencies exempt from tax where such goods are subsequently
transferred or exchanged in the Philippines to non-exempt persons or entities, the purchasers,
transferees or recipients shall be considered the Importers thereof, who shall be liable for any internal
revenue tax on such importation.

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